How to Protect Your Assets from Nursing Home Costs

At Legacy Design Strategies in Omaha, our elder law team members see firsthand the financial strain that nursing home expenses can place on families. With the rising costs of long-term care and the complexities of qualifying for Medicaid benefits, it’s crucial to understand how to protect your assets from the nursing home. This article sheds light on the financial challenges many seniors face regarding elder care costs. Don't lose your nest egg to the nursing home. Start planning early and working with a knowledgeable elder law attorney to preserve your hard-earned assets while ensuring quality care for yourself or a loved one. It’s essential to have discussions with your family or spouse now about protecting your assets in the event nursing home or in-home care becomes necessary. To see how disastrous mistakes can drain your nest egg to pay for nursing care, and learn how to avoid these mistakes, register for our webinar.

The Financial Challenges of Long-Term Care in Omaha

As the population ages, more seniors in Omaha will require long-term care. This demographic shift reflects a larger trend across the United States, particularly as Baby Boomers grow older. According to an article in The New York Times, the number of Americans aged 85 and older has increased six times faster than the general population since 1960, resulting in a sharp rise in the demand for elder care. The financial implications are significant, especially for middle-class families in Omaha, who are often caught in a cycle of depleting savings to afford care. Studies show that individuals who need long-term care are far more likely to exhaust their financial resources than those who don’t.

Why Are Nursing Home Costs So High?

Americans face particularly high nursing home costs because the U.S. dedicates a smaller percentage of its GDP to long-term care than many other wealthy nations. This underfunding leads to substantial out-of-pocket expenses for families. The healthcare system is also strained due to staffing shortages in both in-home care and long-term care facilities, further complicating access to the care seniors need. These challenges create a significant financial burden for families who have not planned ahead to protect their assets from the nursing home.

Federal Programs Fall Short for Omaha’s Seniors

Although the demand for elder care has surged, federal policies regarding long-term care have not evolved since Medicare and Medicaid were created in 1965. This lack of reform leaves Omaha families with limited options. Medicaid is intended for low-income individuals, but its strict eligibility requirements mean that many seniors must deplete their savings to qualify. Most families don’t know how to properly plan for elder care, leaving them unprepared when the time comes to pay for nursing home care.

How Do Omaha Residents Pay for Nursing Home Care?

Since Medicare does not cover long-term care, many seniors in Omaha must either pay for nursing home care out-of-pocket or qualify for Medicaid. Unfortunately, this often means spending down personal savings and assets to cover the costs until Medicaid eligibility is achieved. For those who don’t plan ahead, this can lead to financial ruin, as seen in many stories across the U.S. and right here in Nebraska.

A Personal Story of Losing Assets to the Nursing Home

Consider the experience of Gay Glenn and her mother, Betty Mae Glenn, as an example of the financial difficulties that come with elder care. Betty Mae lived in a Kansas nursing home that cost over $10,000 per month. To afford this, she had to spend all her savings. This scenario is not unique; many families in Omaha face the same dilemma—spending down assets to qualify for Medicaid. Gay had to relocate from Chicago to Kansas to manage her mother’s finances, including paying rent on her mother’s properties, which were being used to cover nursing home costs. After Betty Mae’s passing, Gay had to sell the family home and pay $20,000 back to Medicaid as part of the estate recovery process. This situation underscores the need for early planning to protect your assets from the nursing home.

Why Planning Now Is Essential for Omaha Families

Long-term care costs have increased at a rate that exceeds inflation over the past two decades. This rise makes it more critical than ever for Omaha families to start planning early. Asset protection isn’t just about safeguarding wealth; it’s about ensuring that you or your loved ones can receive the care they need without losing everything. Without proper planning, nursing home expenses can quickly drain your life savings.

How Does Estate Planning Protect Assets from Nursing Home Costs?

Many Omahans believe that estate planning is only for the wealthy. However, the reality is that everyone can benefit from a well-crafted estate plan. Estate planning strategies, such as creating trusts, can help protect your assets from being consumed by nursing home costs. A thoughtful estate plan can help ensure Medicaid eligibility while preserving your savings and assets for future generations. The key is to act early—long before a nursing home is needed—to prevent your financial security from being jeopardized.

How to Qualify for Medicaid Without Losing Everything

Qualifying for Medicaid without losing your assets can be complex, but it is possible with the right planning. An elder law attorney at Legacy Design Strategies in Omaha can help you navigate the process, including setting up an asset protection trust, which shields your wealth from nursing home costs. This allows you to qualify for Medicaid benefits while keeping your assets intact for your heirs. However, without proper guidance, you may inadvertently make costly mistakes, such as gifting property too soon, which could delay Medicaid eligibility.

How Can an Elder Law Attorney Help Protect Your Assets?

The team of elder law attorneys at Legacy Design Strategies is the largest of its kind in the United States. We have one major goal for you and your family, and that is to help you keep your property in the family so that it is preserved for future generations, while at the same time, making sure your loved one is cared for in the way that you feel comfortable.  Our Omaha Medicaid planning team has the knowledge and experience to help you apply for Medicaid without losing your hard-earned assets to nursing home costs. Since each family's financial situation is unique, our Medicaid attorneys can craft personalized strategies to meet your needs. Book a call with our team to get started. It’s never too early to start planning, and even if a loved one is already in a nursing home, there are still ways to protect remaining assets.

Protecting Your Assets from Nursing Home Costs in Omaha Is Possible

Early planning is key to safeguarding your financial future. Here’s what to keep in mind:

• Nursing home costs are rising, and it’s essential to protect your assets from these expenses.
• Estate planning, including trusts, is an effective way to preserve your family’s wealth.
• An elder law attorney can help you apply for Medicaid without losing everything.
• Planning ahead ensures that you and your family are prepared for the financial challenges of long-term care.

By taking proactive steps now, you can protect your assets from nursing home costs in Omaha, ensuring that your financial security remains intact while securing the care you or your loved ones need.