Older adults have numerous unique legal needs. People preparing for or enjoying their retirement years often need to address certain elder law concerns. For example, they may need to plan for the potential expenses of long-term medical care.
As people age, their support needs increase. They may require the support of a nursing professional or home health aide in their home to continue living independently. Those with more significant care needs may need to move into a nursing home.
The cost of both skilled in-home support and nursing home care can add up to thousands of dollars each month. Older adults often need to plan well in advance for those expenses to protect themselves and their loved ones.
Medicare doesn’t cover long-term care
Retired adults sometimes take for granted that they can rely on Medicare coverage for various needs. Medicare does cover many types of basic medical support. However, intensive, long-term care services are typically not eligible for Medicare coverage.
Instead, people either need to pay out of pocket, use long-term care insurance or qualify for Medicaid benefits. For many people, long-term care insurance is cost-prohibitive, especially when they are already at retirement age. Medicaid may be the best option available.
Medicaid benefits are only available to those with limited resources and income. In fact, the state looks at five years of financial records to identify inappropriate gifts or transfers. People who do not plan at least 60 months before applying for Medicaid may be at risk of a penalty. The state may demand that they pay for their care costs out of pocket for a specific number of months because of the transfers that they previously made.
Advance planning allows people to preserve their assets and speed up the Medicaid approval process. Older adults can then feel confident about their ability to obtain the support they need for their safety and stability when they are vulnerable later in life. Advanced planning for Medicaid can also help preserve the legacy of an older adult. Assets still owned by a Medicaid recipient at the time of their death are vulnerable to estate recovery efforts if they do not plan ahead of time.
Acknowledging the need for Medicaid planning and other elder law issues can help people to better ensure their safety and financial stability during their golden years. Adults who plan well in advance can limit the chances of a Medicaid penalty or estate recovery efforts that may negatively affect their loved ones after they pass.
