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Are You Prepared for the Rising Costs of Long-Term Care?

December 30, 2024
Andrew Sigerson
Over half of adults aged 65+ will need long-term care, yet most are financially unprepared. The Legacy Design Strategies elder law team can help you prepare with Medicaid planning, asset protection, and legal directives.

Why Are So Many Older Adults Unprepared?

The statistics are staggering. According to the Department of Health and Human Services, more than 56% of people turning 65 will require long-term care. However, few are financially equipped to handle the expense. On average, a 65-year-old can expect to incur $120,900 in long-term care costs, with nearly 40% of that burden falling on families to pay out of pocket.

Traditional safety nets, like Medicare, only cover short-term care, leaving Medicaid as one of the few options for assistance. Unfortunately, Medicaid eligibility rules are complex, and without proper planning, many families find themselves spending down their life savings to qualify.

The rising costs of long-term care insurance further complicate the issue. Premiums for these policies range from $1,700 to $7,225 annually, reports a CNN article, and stricter eligibility requirements often disqualify older adults. Those who do qualify frequently face higher premiums due to health or mobility concerns, leaving low-income families in a particularly vulnerable position.

How Do Families Pay for Long-Term Care?

  • Personal savings provide the most flexibility. This is not an option for many, as one half of American households with workers 55 and older had no retirement savings.
  • Veterans disability benefits can be used for long-term care services, but the non-disability benefits available to veterans are more limited. They may cover in-home services and adult day care, but not rent at an assisted living facility.
  • If a loved one owns a home, they can take out a reverse mortgage in Omaha and use the lump sum or monthly payout for long-term healthcare needs. The money is repaid, when the home is sold or passed on to an heir.
  • Medicare will pay for some long-term care, but only under very limited conditions. It may cover skilled nursing care in a facility but not the care for daily living activities, including toileting, dressing and others. Coverage is all expenses for the first 20 days in a facility and then there is a daily co-pay of about $170 for the next 80 days, when all coverage stops.
  • Medicaid can be used for long-term care, but only when strict eligibility criteria are met.

The Role of an Omaha Elder Lawyer

Preparing for long-term care requires more than saving money—it requires a comprehensive legal and financial strategy. This is where an elder lawyer can provide invaluable assistance.

1. Medicaid Planning

An Omaha elder lawyer can help you navigate the intricate Medicaid eligibility rules and develop a strategy to protect your assets while qualifying for benefits. By planning early, you can avoid penalties and preserve more of your hard-earned savings.

2. Asset Protection

With the right legal tools, such as irrevocable trusts, you can safeguard your home and other valuable assets from being depleted by nursing home costs. Read more about Medicaid Trusts.

3. Long-Term Care Planning

An elder lawyer works with you to anticipate future needs and create a long-term care plan that ensures access to quality care without compromising your financial stability.

4. Advance Directives

In addition to financial planning, elder lawyers help families establish healthcare directives and powers of attorney, ensuring your wishes are respected if you become unable to make decisions for yourself.

The Cost of Waiting to Plan for Long-Term Care in Omaha

Delaying long-term care planning can have devastating consequences. Families who wait until a crisis arises often face difficult choices, including selling assets or relying on loved ones for financial support. Starting the planning process early allows you to explore all available options and avoid unnecessary stress and financial loss.

How Legacy Design Strategies Can Help

At Legacy Design Strategies, we understand the unique challenges Omaha families face when preparing for long-term care. Our experienced team of elder lawyers works with you to create a personalized plan that protects your assets, secures your family’s financial future, and ensures access to the care you or your loved one needs.

Key services we provide:

  • Customized Medicaid planning strategies
  • Asset protection through trusts and other legal tools
  • Guidance on advance healthcare directives and powers of attorney
  • Long-term care planning tailored to your needs

Take Control of Your Future Today

The majority of older Americans are unprepared for the high costs of long-term care, but you don’t have to be. With the guidance of an experienced Omaha elder lawyer, you can take proactive steps to secure your family’s future and maintain your peace of mind. Request a consultation with our team to start planning ahead, which is one of the most important gifts you can give yourself and your loved ones. Let Legacy Design Strategies help you navigate the complexities of long-term care planning and protect what matters most.

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Estate Planning Attorney in Omaha, NE

9859 South 168th Avenue,
Omaha, NE 68136

Minot, ND Office

7 Third Street SE, Suite 202,
Minot, ND 58701

Iowa Falls, IA Office

320 North Oak Street, PO Box 295,
Iowa Falls, IA 50126

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