Protecting Elderly Parents’ Assets: A Comprehensive Guide
While watching our parents grow from the people who took care of us into elderly adults who, in turn, need care can be difficult, it’s important that we’re aware of what we can do to protect them mentally, physically, and financially. Concerning the latter, there are ways to protect elderly parents’ assets. And while it may seem complicated, there are ways to ensure it happens.
It is possible that a portion of your parent’s assets may go toward providing long-term care, as Medicare and Medicaid may not cover everything. When it comes to your parent’s largest asset, which is most likely their home, it’s natural to have concerns around the home being taken from them. There are ways to prevent that from happening. Read on to find out how to protect your parents’ assets.
One of the biggest questions when it comes to elderly parents is whether they will need some sort of long-term care. This could be a nurse who visits their home, a nursing home, or even a assisted-living facility. Of course, all of those options come with different costs.
For instance, the average cost of a year in a nursing home is between $70,000 and $170,000. Depending on the person and their respective medical needs, the cost varies, and it is unknown how long someone will end up in a nursing home. On top of that, the person’s health is likely to deteriorate over time, ramping up the costs even further. It’s a large amount of money.
Medicare will pay for some of the costs associated with long-term care, but not all. Insurance policies may not cover long-term care, either. Medicaid offers more coverage for long-term care, but only after the amount of assets the parent is carrying allows them to be eligible. That process involves your parents’ finances being used until they meet the income requirements for Medicaid.
It’s vital to have a plan in place for your elderly parents, and an asset protection lawyer at The Mattar Firm can help you construct a plan aimed at preserving your parents’ assets, should it be a house, bank accounts, etc.
Having power of attorney will enable you to make thoughtful decisions for your parents, should they be incapacitated. It will also allow you to protect their assets.
Medicaid allows for the protection of your parents’ assets, meaning the home will be secure while they are on it. Medicare looks to get people back into their homes at some point, so they will not go after the asset, as long as it may serve the needs of your parent.
Nursing homes do expect payment between what Medicare covers and while Medicaid is worked out, meaning they will be looking at your parents’ savings. However, you will be able to protect your parents’ assets, even in these cases, as Medicaid should kick in before the need arises to sell the home.
As mentioned above, having an up-to-date plan in place is vital. Conversations over long-term care with your parents can be uncomfortable but are necessary. It’s important to find out what your parents want done with their assets, especially if you have power of attorney.
Obtaining advice from a qualified professional like an asset protection lawyer is also important in determining what steps are best for you and your parents. They will help you decide on things like living wills, healthcare proxies, and trusts. It’s also important to understand your parents’ Medicare and Medicaid coverage. As mentioned, there are qualifying factors to meet, and an asset protection lawyer can help your family get there while preserving your parents’ assets.
Contact The Mattar Firm
At The Mattar Firm, our experienced asset protection lawyers can guide you through the process on how to protect your parents’ assets. Contact our estate planning lawyers now at 239-222-2222.