When you think about retirement planning, you naturally focus on the positive times that you can have as a senior when you put your working years behind you. This is fantastic, and everyone should make the most of their golden years. However, there are the twilight years that will follow, and you should be aware of the potential long-term care costs that you could face as a senior.
The majority of Americans will qualify for Medicare at the age of 65 under currently existing laws. This would provide a certain level of health care insurance, but Medicare does not pay for long-term care. Since 70 percent of seniors will eventually need living assistance, this is something that should be addressed when you are devising a plan for aging.
Long-Term Care Insurance
It is possible to purchase insurance that would pay for all or part of your long-term care if you were to require help with your activities of daily living at some point in time. This can seem like an ideal solution, but the insurance can be expensive, and it is particularly expensive if you try to take out a policy when you are a senior citizen. Talking with your insurance agent regarding long-term care insurance to determine if it is right for you is advisable.
Medi-Cal is a government run health insurance that does pay for long-term care, and it is the solution for many Californians. You could potentially give your loved ones gifts to get countable assets out of your own name, since there is a $2,000 limit on countable assets.
The above can sound like something you could easily do if you ever find out that you need long-term care. This is not as easy as it may sound, because there is a 30 month look back in California. Your eligibility is delayed, and you have to pay out of pocket if you do not complete the gift giving at least 30 months before you apply for Medi-Cal coverage.
In this situation, long-term care insurance may be useful. Working closely with an experienced elder law attorney familiar with the complex area of Medi-Cal Planning, your plan might include giving assets to your loved ones as you simultaneously take out a long-term care insurance policy. You could keep enough to pay for your long-term care insurance premiums, and you could pay the premiums for 30 months to protect yourself.
After the 30 month interim, you would be able to qualify for Medi-Cal if you were to require long-term care, so you wouldn’t need the long-term care insurance after the 30 months.
Elder Care Planning Consultation
Our law firm is staffed with experienced professionals trained in the complex areas of Medi-Cal, probate, trusts, trust administration, tax law and geriatric care management. We help seniors with Medi-Cal Planning so they can qualify for long term care should it be needed while preserving assets for their loved ones. We regularly offer free seminars and workshops on Medi-Cal Planning, Living Trusts, Special Needs Trust and more. To view our upcoming events, follow this link: Free Workshops and Seminars.
- Act in Advance to Prevent a Conservatorship - April 27, 2021
- Beneficiary Designations and the SECURE Act: Prior Designations - April 20, 2021
- Beneficiary Designations and the SECURE Act: Eligible Designated Beneficiaries - April 16, 2021