This is a concept that is referred to a situation where a person is preparing to go into a nursing home. With the rising medical costs, nursing homes charge anywhere, on average between $5,000 and $9,000 (or higher) per month. Therefore, with the average stay in a nursing home of 3.5 years, it's easy to see how a person's life savings can be completely eaten away by nursing home costs. However, for people who plan at least five years in advance, it is possible to protect nearly all of your assets from long term nursing home costs eating away your life savings.
Sometimes, unfortunately, people do not plan five years in advance. This is referred to as a crisis Medicaid planning situation. In these situations, your options are limited. However, there are strategies that you can pursue to protect 1/2 of the assets that you own on the date that you enter the nursing home (leaving assets for your surviving children when you pass away).
If you have questions regarding Medicaid planning or crisis Medicaid planning, I encourage you to download my free report on Avoiding Nursing Home Poverty. Please fill out the contact form to the left of your screen to download this free report. If you have questions about Medicaid planning, please contact our office, as always, we are here to help!
Daniel A. Perry