 Las
Vegas Elder Law, Pre-Medicaid Planning, Long-Term Care Options
Elder law is another aspect of estate planning, focusing primarily on
the needs of families and individuals as they age. Issues of aging
include senior housing and home care, long-term (or nursing home) care,
guardianships and health care documents, and Medicare, Nevada Medicaid and
pre-Medicaid planning.
The Long Term Care Dilemma
As our population ages, more and more of us
confront elder law-related issues, whether for ourselves or our parents.
One of the most pressing issues is long-term nursing home care, which
usually is not covered by traditional health insurance. Depending on
where you live and the level of care needed, nursing home care can cost
from $35,000 to $150,000 a year. The average stay is slightly more than
three years. Most people end up paying for nursing home care until their
personal (or family) assets are depleted, then they may qualify for
Medicaid to pick up the cost.
Careful planning, however, can help protect your
assets, whether for your spouse or for your children. The
belt-and-suspenders approach is to purchase long-term care insurance
while you are healthy enough to qualify, and to make sure you receive
the benefits to which you are entitled under Medicare and Medicaid.
Veterans (and their single surviving spouses) also may seek benefits
from the Veterans Administration.
Medicare
Clients are frequently confused over the
differences between Medicare and Medicaid. Though their names are
very similar, the programs are quite different. Medicare is an
entitlement program, a federal health insurance program in which
most people enroll when they turn 65 years old. There are no
financial qualification rules. Medicare has two primary parts: Part
A and Part B.
Medicare Part A covers in-hospital care, extended care
after a hospital stay, some home health care services, and hospice
services. The rules for nursing home coverage are very strict and,
in fact, Medicare pays for less than 9 percent of nursing home care
in this country.
Medicare Resources
Medicaid
Medicaid, is a joint federal-state program,
Subject to certain federal requirements, each
state implements its own regulations on how the program is managed.
Medicaid is not an entitlement program like Medicare, but rather
a form of welfare. Medicaid eligibility is determined after the proper application is
submitted to the state. There are many Medicaid insurance programs
available in Nevada, from basic medical coverage to nursing home
programs. An
overview of all
Nevada Medicaid programs is available online.
Pre-Medicaid Planning
If you or your loved one is not in immediate
need for long-term care assistance, you may be able to distribute or
protect assets now so that when the long-term care assistance is needed,
the qualification process can go quickly. It is impossible to give
general guidelines for Medicaid planning because every client's case is
different. Remember, you cannot simply "give away" assets to impoverish
yourself and thereby qualify for Medicaid. There are stringent rules and
penalties prohibiting this, which is why most traditional "revocable"
trust planning will not help with pre-Medicaid planning.
An "irrevocable" trust, however, is a trust that cannot
be changed after it is created. Income-producing assets may be placed in
an income-only irrevocable trust, and the income may be paid to you for
life. Properly funded and managed, after five years, principal will be
an unavailable asset for Medicaid purposes and will be preserved for
your family. This is one strategy to protect certain
assets while still providing the income from those assets. (However, if
you require nursing home care, the trust income will be available
to pay for your care.)
Elder Law 101
Follow the link below to Elder Law 101 for an
easy-to-understand presentation about Elder Law. Feel free to use the integrated functions to
print any page, bookmark it to return later, or forward a copy to your
friends, family members or financial advisor.
 Elder
Law 101
According to U.S. Census Bureau statistics, there
are nearly 35 million seasoned citizens and by 2010 there will be some 40 million seasoned
citizens. Thereafter, due to the graying of the Baby-Boom generation, we
will see that figure jump to 53 million in 2020 and to 70 million in
2030! The good news is that Americans are living longer than ever. The
bad news is that we eventually wear out physically, mentally or both. It
is a classic Catch-22.Click here to learn
more about Elder Law.
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