How to Protect Your Home and Life Savings from Nursing Home Costs

Elder Law Topics Like How to Protect Your Life Savings from LONG-TERM CARE Home Costs are Vital to Consider

Most people are not aware of how financially devastating long-term care can be until it’s too late.

Nursing home costs often exceed $100,000 per year. Typically, long-term care comes as end-of-life care, but the need can arise unexpectedly through illnesses such as early onset dementia or accidents. Without proper advance planning, it’s easy to see how families can lose their homes and life savings. Fortunately, there are legal strategies that can protect your assets while ensuring you receive the care you need.

One powerful tool is an irrevocable trust called the Medicaid Asset Protection Trust (MAPT).

This trust allows you to transfer ownership of your home and other assets to the trust while retaining certain benefits, such as the right to live in your home. When assets are transferred to this irrevocable trust at least five years before applying for Medicaid (known as the “look-back” period), the assets in the trust are no longer considered part of your estate for Medicaid purposes. This allows you to qualify for Medicaid benefits while preserving your wealth for heirs.

Considering the five-year look back, you can see why the MAPT is a proactive strategy.

Pre-planning is essential. Assets that are usually allowed to be placed in a MAPT include your primary home, real estate other than the primary home, checking and savings accounts, stocks and bonds, mutual funds, and CD’s. Each state has its own allowances and requirements, so, it’s important to work with an experienced Elder Care Estate

However, even in a crisis, reactive strategies can exist and can be employed. These include spending down on allowable expenses (like home improvements or prepaying funeral costs), asset conversions (turning countable assets into exempt ones), and spousal transfers that leverage Medicaid’s protections for a healthy spouse.

We can customize strategies based on your personal circumstances, assets, and family situation. By acting early and employing proactive strategies, you will enjoy peace of mind knowing that your legacy is preserved, you home and life savings are protected, and your loved ones will avoid financial ruin. Even in a crisis, we can help with the strategies mentioned above. Whether you are in a crisis or are ready to be proactive, give my office a call today at (470) 235-7868.

Looking to find an experienced estate lawyer in the Georgia area who is skilled in asset protection and estate plan preparation? Shannon Pawley is an attorney in Georgia with expertise in estate planning and asset protection. Shannon can provide assistance with creating an estate plan to include making a will and how to establish a trust properly. If you have questions about asset protection or questions about making an estate plan, reach out to Shannon and she will be glad to help answer all the estate planning questions you might have!

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Stacy McKenzie

21:58 07 Feb 24

Shannon and her team were great. Went in for a consultation and got my money worth. She explained and made sure we understood. I will be using them in the future.

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18:55 17 Dec 23

We had excellent service from Shannon and her team, they are true professionals and helped us and explained every step in the process. We highly recommend The Estate and Asset Protection Law Firm.

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Stephanie Deal

15:22 07 Jul 23

My father and I recently used the estate, an asset protection, law, firm for new wheels, new, power of attorney’s, and a creation of a trust. Brooke and her entire team could not have been more helpful and more professional! We loved working with them, and they took everything seriously therefore I didn’t have to worry about a thing. I highly recommend everyone at the law firm.

Barry Amos

01:22 01 Jul 23

Great firm. Had answers to all our questions and explained everything clearly. Never felt rushed to make a decision Could not ask for a better experience. Every one we dealt with was professional and knowledgeable. We highly recommend this firm for estate planning.

Lee Jay

21:30 28 Jun 23

Shannon provided invaluable information regarding a family estate matter. Although her firm did not quite fit our immediate needs, the consultation was informative and extremely HELPFUL! Shannon clearly explained what our next steps should be and offered to assist if we had any questions along the way. Her expertise and willingness to help puts her in a league of her own!

Alice Guppy

02:01 23 Jan 23

Shannon and everyone at The Estate and Asset Protection Law Firm are professional, very knowledgeable, and a pleasure to work with. They answered all our questions in great detail and the plan they developed for us is exactly what we need to protect our assets and estate as we age especially with my husband's health issues.

Lynn McKibbin-Moore

23:09 24 Feb 22

My husband has dementia. This firm has been patient, kind and professional while we went through a move from a house of 37 years in to a condo to be closer to my daughter and her husband. (Miami to Atlanta). There was also a wedding. All in 6 months.
We now have a trust, power of attorney. Wills for my daughter and her husband and more. All at a fair price. I could not recommend higher.

Tammy Lee

22:03 29 Jan 22

Shannon Pawley and her team are exceptional at helping families navigate tough situations. We began working with her upon finding out my father had Stage 4 kidney cancer. His decline was more rapid than expected.
Attorney Pawley and her entire team expedited paperwork that allowed me to focus on my father’s care, make decisions that suddenly needed to be made for him medically and financially, and has allowed me the ability to focus more on grieving and less on legal matters upon his passing.
It is obvious she is knowledgeable about the best ways to navigate estates to protect the assets for the owners and their loved ones. It is just as obvious that she is passionate and has true heart for what her clients go through.
We will be using her for own estate needs, and I recommend her expertise to everybody I can.
This service is worth every penny we paid as it has saved us more money and time than I could imagine.

H Jessie Brewer

18:26 18 Nov 21

Attorney Shannon Pawley and paralegal Alexis McCoy are legal professionals that my wife and I highly recommend. Their grasp of the Georgia law pertaining to Medicaid assistance and the interworking's of the State department is exceptional. Additionally, their client-attorney relationship skills are excellent. We wouldn't hesitate to use this law firm again should the need arise.

Dawn Hardy

15:06 13 Nov 21

Shannon and her team are the best! They listened to my needs and provided the best advice. They are patient and professional as well as personable, they didn't make me feel like I was just another client. Highly recommend!