As you get older, you should consider how you’ll protect yourself, your family, and your assets from one of the most common causes of bankruptcy: medical bills.
Specifically, once you’ve turned 60, you need to plan for how you’ll pay for long-term care if you need it. What if you become unable to care for yourself and need help with things like bathing, clothing, eating, or toileting?
Intensive help like this can be provided at home, in an assisted living facility, or in a nursing home, but the common denominator is that this level of care is catastrophically expensive, and many people need financial assistance paying the bills.
Medicaid is a program that provides an important source of financial assistance in these cases, but the eligibility criteria are very strict. For example, even if you meet the eligibility criteria, if you have given assets away in the 5 years prior to applying for Medicaid, a penalty period will be imposed. During the penalty period, Medicaid will not pay for your care.
We primarily work with clients who do not anticipate needing long-term care in the next 5 years but want to protect assets, such as their home, from potential future costs of care.