According to U.S. News & World Report, the average cost of a private room in a nursing facility is $8,365 per month, or more than $100,000 a year. A couple can very easily burn through their retirement savings at these rates. One way that families can plan ahead is through purchasing long-term care insurance. However, some families face the need for nursing care without having planned ahead. These families might find themselves facing the prospect of quickly spending their life savings to fund a loved one’s nursing care. While Florida offers allowances for couples, to protect the financial integrity of a healthy spouse, these allowances may still be small in proportion to a couple’s estate or savings. So, what options do you have if a loved one needs nursing care?
As nursing home care costs go up, more elderly individuals are considering how they might be able to afford this costly long-term care. Medicaid will pay for nursing care for the elderly, if the person needs this care and if the person financially qualifies for assistance. In order to receive assistance for Medicaid, the person receiving assistance must be considered impoverished under Medicaid’s guidelines. Every state has its own Medicaid qualifications. In Florida, in order to qualify for Medicaid, you must be a Florida resident, must be over the age of 64, and depending on your family size, meet income limits to qualify. For a family of one, the income limit is $16,612 each year, and for a couple, the income limit is $22,491.
Nursing home care can be prohibitively expensive. There have been tragic stories where a couple has spent through all or most of their resources to provide nursing home care for an ill spouse, leaving the other partner destitute. While there are some income and asset allowances in place to prevent spouses from becoming destitute while paying for nursing care for a loved one, these allowances can sometimes be very small relative to a couple’s assets. If you want to protect your assets from the draining costs of nursing care, you may want to speak to a Medicaid planning lawyer today. The Baby Boomers’ Barrister is a Medicaid planning law firm in St. Petersburg, Florida that may be able to assist you.
Many families facing the prospect of needing long-term nursing care for a loved one are lost about where to turn next. Medicaid planning may be able to help. With Medicaid planning, Baby Boomers’ Barrister may be able to help you set up a Qualified Income Trust, annuity, or other financial structure to protect your assets if a spouse or loved one is ill and needs nursing care. Contact Baby Boomers’ Barrister today in St. Petersburg, Florida.
Qualified Income Trust in Florida
One option that the Department of Children and Families notes that may be available to a loved one needing nursing care is a qualified income trust. If a person’s income exceeds Medicaid’s limits (either because a person received an inheritance or other money), a qualified income trust can be established to ensure that the individual can access this income. The Qualified Income Trust must be an irrevocable trust, and the state must be named as the beneficiary of all the funds once the beneficiary receiving Medicaid passes away. The beneficiary must place income into this trust so it won’t be counted as income toward Medicaid. All of the beneficiary’s income must go into this trust. The benefit of the trust is that it can pay out money to the beneficiary for his or her monthly personal needs allowances and monthly spousal benefits stipends. This kind of trust can ensure that a spouse can continue to enjoy regular and predictable income while his or her partner receives Medicaid nursing benefits. Think a qualified income trust might be right for your family? Baby Boomers’ Barrister is a Medicaid planning law firm in St. Petersburg, Florida that may be able to help you.
Annuities and Medicaid Planning
Medicaid-compliant annuities are annuities that can be purchased right away, where payments can also be received right away. If your spouse needs immediate nursing care, but the other partner is healthy, spending down both people’s assets to qualify one partner for Medicaid may not make sense because it will leave one partner with no money on which to live while the other receives Medicaid benefits. Spending down money on costly nursing home care may also not make sense. Instead, an annuity can ensure that the other spouse receives regular monthly income, while qualifying the other spouse for Medicaid. Using this as a Medicaid planning option can be complex, so it is helpful to have a Medicaid planning lawyer on your side assisting you with the process. Florida also has allowances (money and assets the couple can keep without counting against them for Medicaid qualification). So, understanding how much you are allowed to take in allowances, how much you’ll need to put away in the annuity, and what this might mean for your future financial picture can be complex. This is where the Medicaid planning law firm of the Baby Boomers’ Barrister may be able to assist you. Are you afraid of spending down your life savings on costly nursing care? Reach out to the Baby Boomers’ Barrister, a St. Petersburg, Florida Medicaid planning lawyer today.
Afraid of the Costs of Nursing Care in Florida?
Are you spending through your life savings for nursing care? Are you concerned that you’ll spend all your hard-earned retirement money on nursing care for your spouse? You are not alone. Nursing care in the U.S. is incredibly expensive. It can leave families destitute if they are not careful about how they manage their money and assets. Baby Boomers’ Barrister is a Medicaid-planning law firm in St. Petersburg, Florida that may be able to assist you with your Medicaid planning needs. There may be a range of alternatives available to you and your family. You are not alone. Medicaid planning can be complex. However, there are allowances and options available to families and individuals struggling to pay for the cost of nursing care.