You have worked a lifetime to provide for yourself and for your family. Without a plan for care, your life savings could be quickly wiped out if admission to a nursing home becomes necessary. According to the 2016 Genworth Cost of Care Survey, the median cost of a privately paid nursing home room in Massachusetts is estimated to be $395 per day or $144,145 per year
How could this apply to me and my family?
Here is a typical, though hypothetical, scenario: Mary and Joe are both 82 years old and are in relatively good health, they own a nice home, drive a nice car, they both collect Social Security and Joe earns a nice pension and also has a sizeable IRA. They are currently enjoying their retirement years and were planning on leaving as much to the kids as possible.
Mary slips and falls in the shower, breaks her hip and gets rushed to the hospital. After Mary has been in the hospital for a week, she needs to transfer to a rehabilitation facility. While in the rehab facility, Mary’s condition and health situation deteriorates further and Joe is told by the physician that Mary will have to go to a nursing home/skilled care facility. Mary did not purchase Long Term Care Insurance because she and Joe didn’t want to pay for something they may never use.
Medicare could potentially pay up to the first 100 days of the rehabilitation, but after that Joe and Mary are responsible to pay the nursing home privately, currently approximately $12,000 average per month in Massachusetts. This would create a very difficult financial situation for Joe, who will need to continue to pay expenses as well as having to deal with the heartache of having Mary placed in a facility.
What is the solution?
In this case, under the guidance of a qualified Elder Care Attorney, assets were transferred over to Joe, a Medicaid Compliant Annuity was put in place and Mary became eligible for Medicaid assistance. The result was Joe was able to continue receiving his Social Security check, his pension payment as well as his IRA. Mary only had to pay her Social Security income of $800 to the nursing home instead of having to privately pay $12,000 per month.
Peabody Wealth Advisors has been assisting Attorneys and their clients for 18 years when it comes to Emergency Medicaid Planning and has a vast network of qualified Elder Care Attorneys we can recommend you speak with.
Pre-planning can help offset some of the risks that Mary and Joe encountered. Peabody Wealth Advisors can help educate you and your family and explore strategies and options to help plan for potential long term care costs through a comprehensive financial planning process. Our team experience and knowledge and our network of trusted advisors will help you navigate this challenging path that is unfamiliar to most.