When we go into a nursing home or other long-term care program, we are expected to pay for the care using our own assets until our life savings are depleted.
As we age, we all know there’s a chance we might need long-term care. But how can we afford it? Nursing homes in Kenosha cost anywhere from $7000 to $12,000 a month!
Many people turn to Medicaid for help in this situation. Medicaid is a federal and state program that provides health coverage for people in need, including the elderly.
When we go into a nursing home or other long-term care program, we are expected to pay for the care using our own assets until our life savings are depleted. Then Medicaid takes over the bill. However, before our assets are depleted, we have an opportunity to set aside Medicaid-exempt assets.
If you are facing tough decisions about Medicaid or other end-of-life concerns, it’s a good idea to consult an attorney. There are attorneys who specialize in Medicaid planning. They can advise you on how to maximize your protected assets, and how to use your unprotected assets.
Prepaid Funeral Plan
One way to turn unprotected assets into exempt assets is a prepaid funeral plan.
As part of a “Medicaid spend down,” a prepaid funeral plan can include any or all of the following:
- Basic services of the funeral director and staff
- Transportation to the funeral home
- Embalming
- Cremación
- A casket or urn
- A cemetery plot
- A headstone
- The funeral or memorial ceremony
- Church fees
- Flores
- Funeral luncheon
Meeting with a Preplanning Professional
Once the money for these items is placed in an irrevocable life-insurance-funded burial contract, it becomes an exempt asset, a fund that can only be used to cover the cost of your funeral. That word, “irrevocable,” is important—when you meet with a preplanning professional, make sure they know you are qualifying for Medicaid and need an irrevocable contract.
When you’re done, it will be a relief to know you’ve secured dignified, meaningful services for the end of your life, no matter what happens down the road. And your family will be grateful! When they gather to make the final decisions about how to honor you, they will feel much less stress and anxiety knowing that a plan is in place and the funds are there to cover it.
