How to pay for long-term care is a question that keeps individuals up at night.  For certain families, there may be several options, for others, only one.

Long-term care involves medical and non-medical care to people who have a chronic illness or disability. Most long-term care is to assist people with activities of daily living, such as dressing, bathing, and using the bathroom. Long-term care can be provided at home, in the community, in assisted living or in nursing homes. It is important to remember that you may need long-term care at any age.

Out of pocket is the most common way to pay for long-term care.  This means that your income and assets are at risk.  This option does allow the person of considerable means to choose a nicer nursing home or location.  If you spend all of your assets, you can now apply for Medicaid if you are otherwise eligible.

In order to qualify for Medicaid, which is another way to pay for long-term care, if you are single, all of the income goes to pay the nursing home, while you have to spend your assets down to a minimum level, which is currently $2500.00.  If you are married, the spouse not in a nursing home, called the community spouse, can keep their income and perhaps some of the nursing home spouse’s.  There is also a certain amount of money that the community spouse can keep, which is a little over $113,000.  There are Medicaid planning strategies that may work to preserve some of the assets, but this should be implemented long before the nursing home level of care need arises.

Veteran’s Aid & Attendance and Housebound benefits may help offset some of the costs of long-term care.  This benefit is for a wartime veteran or his/her surviving spouse.  There are asset and income limits, but the income can be offset by unreimbursed medical expenses, such as Rx’s, copays, home care or assisted living facility or nursing home costs.  The restrictions on transfer of assets to qualify for the benefit are also less strict that qualifying for Medicaid.  For a married wartime veteran, the pension could be $2000.00 per month.

Long-term care insurance is a great option if you are qualified.  This may be something to look into when you are young and the premiums are lower.  There are also insurance policies that you can convert to include long-term care benefits.  This benefit will have a daily benefit, which hopefully would be over $300 per day, because nursing home costs are $8-10k per month and assisted living facilities are $4-6k.  Some long-term care policies also cover home care costs.

The most important thing you can do is meet with an Estate Planning and Elder law attorney to discuss your options.  There may be a way to alleviate some of your fears so you can get a good night’s sleep.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Options for Paying for Long Term Care by Attorney Paula M. Mattson-Sarli

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Over the 22 years of practicing law I have met with many people and have reviewed their financial affairs. Although I am not a financial advisor and I do not sell insurance, I believe insurance and financial planning play an important role in protecting you and your family.

There are many types of insurance and I do not have enough time to provide a comprehensive overview of the ins and outs of insurance, but let me talk briefly about several types of insurance in estate planning.

I see life insurance in just about every estate I work with. Life insurance has many applications including funeral planning, or debt planning for paying off a mortgage or car loan.  Life insurance can also provide liquid funds for the surviving family.

Long term care insurance is another insurance product I frequently address in estate planning.  I highly recommend everyone consider how they anticipate paying for long term care costs.  Long term care insurance is one option.  Whether you will be cared for at home, in an assisted living or in a nursing home, planning for how the care will be paid for is important.    Long term care insurance can go a long way in preserving your estate.

Liability insurance is another insurance product I regularly recommend to my clients.  Many people tell me they want to protect themselves from law suits.  However it really is not appropriate for most people to do sophisticated asset protection planning with vehicles such as “off shore trusts”.  If this is a concern for you, then a meeting with your insurance agent would be beneficial.  At that meeting you will want to review the insurance you have in place for your home and your automobiles.   You will also want to consider an umbrella policy, or a personal liability policy, to insure you in areas where your homeowners and auto insurance does not.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Insurance Can Play an Important Role in Estate Planning – Attorney Colleen Sinclair Prosser

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Estate planning is very beneficial because it allows you to plan for multiple needs.  It’s important to think about your own personal needs as well as the needs of your loved ones.  If you’re just getting started with your planning, take a look at the following information.  If you have any questions about how certain estate planning tools work, meet with an estate planning attorney.

Do you have a family to protect?

Consider the future of your entire family.  Make sure that you’re able to protect your children so a responsible adult, of your choosing, is always caring for them.  In addition, consider your family’s future needs and expenses.  If you’re unable to provide income, you need savings, disability insurance, and life insurance in place, as applicable.

Are you looking to protect your own future?

You need to prepare for your own future with an estate plan.  Consider protecting yourself during possible illness and disability with powers of attorney, a revocable living trust, and insurances.  Be sure to research insurance options, such as disability insurance, life insurance, and long term care insurance.  Prepare for future retirement costs.

Do you want to make a difference in the lives of others?

You may have other planning goals that don’t relate to you or your family.   Consider giving back to your school or a favorite charity.  You may also consider gifting to others who have made a difference in your life.  There are many ways in which you make a difference in the lives of others.  Financial gifts, letters of appreciation, gifts of experience, and sentimental gifts are all appropriate for loved ones and good friends and neighbors.

Take the time to think about all of your estate planning needs and goals.  If you’re ready to commit to comprehensive estate planning, consult with a qualified estate planning attorney.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Long term care insurance can be a beneficial investment that helps you plan for the future.  With this type of insurance your needs can be much more affordable in the event that you require ongoing medical care.  If you’re thinking about purchasing a long term care insurance policy, you will want to make sure that you choose a policy that meets and will adapt to your circumstances.

Take a look at the tips below.  If you have any questions about long term care insurance, consult with an experienced estate planning attorney.

1. Research different providers and policies.  You’ll want to make sure that you choose a provider and policy that fits your individual needs.  Do your research to make sure that you are making the right choice for yourself and your family.  Ask questions to be sure you are aware of the policy’s terms.
2. Make sure that your policy is affordable.  Choose a policy that has affordable premiums.  You’ll want to make sure that you’re able to continue making payments even after your retire.  You may be able to choose a payment option that allows you to pay a little bit more or less in a few years.
3. Understand all aspects of your policy.  Before agreeing to purchase, you’ll want to understand your individual policy so that you don’t have problems down the road.  This includes making sure that your policy includes certain illnesses and types of coverage such as in-home care, for example.
4. Consider shopping around for long term care insurance with the help of your estate planning attorney.  You can benefit from the experience and knowledge of professionals. Your estate planning attorney can also discuss the financial aspects of paying for your insurance based on your assets and the planning you have in place.

Are you thinking about investing for your future care?  If so, consider purchasing a long term care insurance policy.  If you have questions about your long term care insurance needs, consult with a qualified estate planning attorney.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

As the baby boomer generation begins to retire, the concern about the need for long-term care increases. Long-term care is expensive. In Maryland, the average costs are as follows:*

• Avg. Daily Nursing Home Rate : Private $ 258
• Avg. Daily Nursing Home Rate : Semi-Private $ 235
• Avg. Monthly Cost in Assisted Living Facility: $ 4092
• Home Health Aide Average Hourly Rate: $ 20
• Homemaker Services Average Hourly Rate: $ 19
• Adult Day Services Daily Rate: $ 76

The rates for care in Baltimore and Silver Spring are higher than the state averages. The costs for long-term care in Maryland are higher than the national average.

Medicare only pays the full cost of nursing home care for the first 20 days; after that, Medicare will pay for a portion of the cost up to the 100^th day of care. Payment for nursing home care by Medicare after the 100^th day stops. In addition, Medicare will not pay for care in an assisted living facility, continuing care retirement community or adult daycare.

This means that most of the cost for long-term care will be out of pocket, unless you purchased long-term care insurance.

Long-term care insurance is probably the best option to cover costs of long-term care. However, it is impossible to buy when you need it. Many employers are offering long-term care insurance as part of a benefit package. If you have young adults just entering the work force advise them to take advantage of this insurance while they can get it for less expense. You could also consider asking your employer to provide it as part of your benefit package in lieu of a raise; it could save you both money.

*Source is National Clearinghouse for Long-Term Care Information

Contributed by Nicole Livingston, Attorney

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Long-term care insurance is what the name implies insurance to cover the cost of care in a long-term care facility such as nursing home care. Nursing home care is not covered by Medicare and most other insurance policies. Medicaid will cover the costs of long-term care but require the dissipation of assets to become eligible. Long-term care insurance allows you to maintain your assets and have the care you may need.

The types and kinds of Long-term care coverage available are varied. The cost of the premiums depends on the coverage you select, however the amount of the premium does not change once your purchase it. It is an expense that you can budget. Other factors that can affect coverage are:

• Your age when you get the policy
• Services you choose to have covered
• Optional benefits you choose

There is also a choice of benefit periods. The usual benefit periods are two, three, four, five years and lifetime coverage. It is harder to find lifetime coverage or unlimited coverage options as the costs of nursing home care continue to escalate. The benefit periods of are often expressed in monetary limits such as 100 per day or maximum benefit of $100,000.

When considering long-term care coverage you should always consider a policy that has inflation protection. Inflation protection in long-term care acts the same way as inflation protection coverage acts in homeowner policies. Other popular options to consider for a long-term care policy are hospice care and assistance in the home for activities of daily living. Long-term care insurance is something everyone who is concerned about estate planning, protecting a spouse from potential poverty during retirement, and protecting future assets for their children should consider. Your state insurance commission is an excellent place to get information about companies that provide this type of insurance.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.