Long-Term Care Planning
Virginia Long-Term Care Planning Attorneys
Plan for Future Care
Nearly half of all Americans will spend some time in a nursing home.
According to the New England Journal of Medicine, nearly half of all Americans will spend some time in a nursing home. The average cost of a nursing home in Virginia and elsewhere in the United States is approximately $5,000 per month, and can be more than $10,000 per month.
Our Elder Law attorneys will help you determine and understand your rights.
For all practical purposes the only plan available to most citizens for long-term care is Medicaid. Medicare only pays for about 2% of skilled nursing care in the United States. Private insurance pays for even less. The result is that most people pay out of their own pockets for long-term care unless or until they become eligible for Medicaid. To be eligible, you must meet the program’s guidelines.
The Medicaid program is a partnership between the federal government and the state. Each state submits its Medicaid program to the federal government for approval and once approved, the federal government assists with the funding. The programs of other states differ from Virginia’s program and the differences between the programs are significant.
Certain assets are not counted, such as a home (under certain circumstances), an automobile, personal effects, wedding and engagement rings, medical equipment, and certain types of burial funds. For married couples, the assets of both the husband and wife are combined. This is true even if a prenuptial agreement was signed.
The penalty, which is a period of ineligibility for Medicaid, can be longer than 36 or 60 months or it may be shorter. In addition, transfers made by a Community or Institutionalized Spouse to third parties, related or otherwise, are also penalized. Transfers between spouses and transfers to certain persons with special needs are exempt from the transfer penalty. Under the Deficit Reduction Act of 2005 (DRA), even small innocent gifts made for any purpose can result in a period of ineligibility, which will not begin until you are “impoverished” and in the nursing home. Therefore, early planning is even more critical than prior to the DRA.
The key to long term care planning is to act quickly.
Nearly half of all Americans will spend some time in a nursing home.
Preparing early helps to avoid significant costs. If a nursing home costs $6,000 per month, then each month of delay in planning is an additional $6,000 you will never recover. Even in cases where a person is already in a nursing home, assets can be protected. The earlier planning occurs, the more money can be saved, maintaining the security of a spouse and preserving a legacy for children.
Long-term care also involves careful tax planning. Failure to comply with tax laws, including income tax, gift tax, and, possibly, federal estate taxes usually results in the payment of significant extra taxes.
