Long Term Care & Medicaid Planning

Most individuals will require some type of long term care. Helping individuals and families plan for long-term healthcare needs is a critical component of estate planning. Ensuring there are sufficient funds and options available through health insurance, Medicaid, and Medicare can ease the financial burden and stress of loved ones when long-term care is needed.

At North Carolina Estate Planning and Fiduciary Law, our attorneys keep up to date with the ever changing laws surrounding elder care including long-term health care needs. By understanding the complex requirements of Medicaid and Medicare, we can implement planning strategies in estate plans that provide for long-term care needs while preserving the maximum amount of assets for loved ones. Often this is accomplished through the use of the following documents:

• Wills
• Irrevocable and/or Special Needs Trusts
• Medicaid Asset Protection Trust or MAPT
• Annuities
• Advanced Directives for Healthcare Decisions
• Durable Power of Attorney

Long-term care is expensive with costs expected to continue to rise. The 2021 Genworth Cost of Care reports the average cost of a nursing home facility in Charlotte, North Carolina is $7,756 per month and the average in-home healthcare and assisted-living can range from $4,400 to $4,668 per month. (https://www.genworth.com/ ) The staggering cost of care can be devastating and not many families can cover the significant cost of long-term care without depleting their entire estate.

Medicare is a federal health insurance plan paid into by individuals during their working years. Medicare Part A coverage provides payment for hospitalization, home health services and hospice services. In addition, it provides for limited, short term skilled nursing care facilities, if care is medically necessary and follows a hospital stay. Medicare does not pay for most long-term care needs. To make matters worse, private health insurance generally does not cover the entire cost either. This often leaves a huge gap for most families.

Most individuals have to turn to assistance from Medicaid. Medicaid is a benefit program funded by the government to provide certain low income individuals and families with benefits who have limited resources. North Carolina has strict rules and requirements as to the income and resource limits an individual may have to qualify for coverage. The eligibility requirements and benefits vary and deciphering them can be complex. Planning ahead with a knowledgeable attorney can help you qualify for Medicaid without depleting the entirety of your estate.