It used to be that folks worried about what would happen to their money and their stuff when they died. Those were the good old days. Now the big worry seems to be, “what will happen to my money and my stuff if I live too long?” More specifically, “what will happen to my money and my stuff if I ever have to go into a nursing home?”
While I don’t recommend worry as a means of solving the problem (it has never worked for me), I do encourage folks to gather information and ask questions. Let me share with you what I know about estate planning and asset protection strategies. If you have any questions after reading through this, you can call me at anytime for a free consultation on your specific situation.
Here are some questions I regularly hear:
Will I lose my home if I enter a nursing home?
Will my spouse have to go without if I enter a nursing home?
What will happen to me or to us once our money runs out?
Can anyone force me to have to go into a nursing home?
There are three ways you can pay for a nursing home stay. One is called Private Pay, meaning you pay for it out of your pocket. The second is through a long-term care insurance policy, and the third is to let the Government pay for your stay either through the VA or through Medicaid. If you are a veteran, there are fantastic veteran’s homes available although there is a waiting list and none are close to Birmingham/Bessemer. If you are not a vet, Medicaid is your only option.
Most of what you read about Medicaid is written by authors in other states, so don’t take their word for how it might work here in Alabama
If you go into a nursing home as a private pay resident or under a long-term care policy, you don’t have to sell your home, you don’t have to do anything but pay your bill every month. It is only when you need Medicaid that you have to worry about your home.
The reality is that most people, if they live long enough, will ultimately have to rely on Medicaid for their long-term care. Once your money runs out, once your long-term care policy limits are reached, you will have no other option than to apply for Medicaid. So it makes sense to plan ahead. Why risk your home or your spouse’s well-being? Planning ahead is smart. You know, it wasn’t raining when Noah built the Ark.
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