A 2017 study by the Transamerica Institute revealed that 20% of family caregivers have felt compelled to dip into a loved one’s retirement funds (or their own) to cover costs. Others, under the emotional stress of caring for a loved one, have been forced to liquidate assets such as homes and other property.
The astronomical costs of long term care and other rising medical and caregiving needs often make such difficult decisions necessary. While such sacrifices may be necessary at times, they are often done without first researching alternative strategies to cover costs. This makes asset preservation difficult.
The retirement planning experience at Beacon Hill Financial may be able to help you with preserving assets and finding alternate sources of funding for caregiving costs. Contact us today to arrange your free consultation.
Who Pays for Long-Term Care?
Nearly 70% of elderly adults will need long-term care sometime during their later years—usually at home, but often in a nursing home. It will last for an average of three years. One in five will need long-term care assistance for five years or more. The costs are crushing and the burdens on your loved ones are enormous.
For low-income elderly individuals and families with limited assets, the cost of medical care is largely covered by Medicare or Medicaid. All too often, the poor do without medical care, prescription drugs, or medical services. Many seek treatment through a local emergency room and are unable to pay their medical bills.
Medicare does not pay for personal care in long-term care situations. State Medicaid programs will pay for personal care when it is provided in a skilled nursing facility. There are also several veterans’ long-term care assistance programs and some state assistance programs for individuals that do not qualify for Medicaid. Despite these programs, very often families with limited means bear the full burden of providing long-term and personal care themselves.
Some may have Medicare Supplemental insurance which provides additional assistance for Medicare co-payments and other gaps, or long-term care insurance to cover these costs.
How Can I Preserve My Assets?
There are several steps you can take to preserve your life’s work and investments, or those of your loved one. These steps can help ensure that property remains safe and your assets are preserved for your family or will be waiting when you return home. Here are a few suggestions:
- Consult with an Elder Law Attorney
- Give away money and valuables to loved ones (you may experience penalties for gifting)
- Preserve assets with Medicaid Compliant Fixed Annuities*
- Transfer a small amount of money to your spouse under the Federal Spousal Impoverishment Act
- Use an Irrevocable Trust
Begin Preserving Your Assets Now
Call Beacon Hill Financial for help preserving your assets at 866-289-0759 or fill out the online contact form to request your FREE asset preservation consultation. We may be able to help you preserve your assets no matter your current stage of life. Don’t wait any longer to begin planning for your future. We can also provide you with a recommendation for an elder law attorney.