Yosef Meystel lends tips on financing the expense of long term nursing home care

Aug. 4, 2010 - PRLog -- One choice is to privately pay for the care but at $4,000 to $15,000 per month in a nursing home, most people cannot afford to do that without getting wiped out.Another method is to access long-term care insurance benefits but most people lack adequate coverage.A third option, the only other way to pay for long-term care, is the Medicaid program. Medicaid is based on financial need but there are legal methods of protecting your assets so that you may qualify for Medicaid without having to first spend your money or give it away.

DO NOT spend all of the money and then be solely reliant on government benefits. Medicaid is the only government program that is available to most people to cover long-term care costs and it does not cover everything.

DO NOT give away your assets: This is a very common pitfall.

DO a new deed to help protect the home. In some states, a lawyer can prepare a special kind of "life estate" deed that allows the property to automatically pass to your children or other heirs upon your death and without any Medicaid disqualification.

DO the Medicaid-friendly durable power of attorney: Have an Elder Law Attorney create a Durable Power of Attorney that takes into account Medicaid and other aging issues.

Consider creating Medicaid Trust Agreements. Trust agreements are artificial legal entities that can own assets and/or income.

Transfer money to a child without it being counted as a disqualifying gift. If the circumstances warrant, you can transfer money to a child or other trusted person in exchange for care services.

Consider "Just Saying No" to spousal impoverishment: If one spouse is going into a nursing home, it is very possible for the "well spouse" to be left destitute due to the other spouse's care costs.

Find a good lawyer: You should not attempt to figure out this complex system on your own.

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About Yosef Meystel:

Yosef Meystel is the president of YAM Management, a property management company located in Skokie, Illinois. YAM management operates several nursing home facilities and properties located within Illinois.