Assisted living home costs are rising, which could be detrimental to your financial health must you discover yourself in need of nursing home care, and even that of an assisted living neighborhood. In reality, the typical yearly cost for an assisted living home is running around $75,000 per individual. Having insurance coverage will not be much of a help since many insurance plans do not cover the costs associated with a nursing house.
With costs like this, it is not a question of whether one will run out of cash, but when one will lack cash. In order to make sure that you don’t invest your twilight years flat-broke, take steps now to safeguard your assets.
You might start safeguarding your properties by making considerable presents to your children a minimum of 5 years prior to going into an assisted living home or helped living community. Attempting to wait till you’re almost to enter such a center will be too late, since Medicaid has a five-year buffer that avoids senior citizens from gifting all of their possessions to their family simply prior to going into the facility, in order to pass off the expense on to Uncle Sam. The disadvantage here is that you must be positive your kids will reciprocate by establishing a trust that assists to cover any special costs arising from your care.
Understandably, gifting the majority of your assets to your kids while you are still in need of them might make one squeamish; after all, money does have a way of changing individuals. Because case, tell them that paying at least 50% of your medical costs qualifies them for a big tax deduction.