Ask the expert: Is Long-Term Care Expensive?
Have You Ever Considered How Much Long-Term Care Costs?
Long-term care costs don’t just include nursing homes, it’s about protecting your future. Whether you or a loved one ends up needing care at home or in a facility, the costs can be overwhelming. Without proper planning, long-term care can wipe out everything you’ve worked hard to build: your retirement savings, your home, and your children’s inheritance.
That’s why Medicaid planning needs to be a key part of your estate planning strategy. The time to start is now, not later.
The reality: Long-term care costs are high – it is expensive!
The cost of care is staggering. In metro Atlanta, skilled nursing facilities range from $5,000 to $16,000 per month. Most families can’t afford this long-term, especially when care is needed for several years.
Adding to the urgency, 1 in 4 adults over age 70 will develop dementia or Alzheimer’s, and more than half of them will need long-term care. The financial and emotional strain is real — and all too common.
Without planning, families are often forced to spend down nearly everything before Medicaid steps in. This puts your financial future — and your family’s security — at serious risk.
What is Medicaid?
Medicaid is a government program that helps people with limited income and assets pay for health care, including long-term care services like nursing homes and in-home assistance. It’s not the same as Medicare, which in most cases only covers short-term care.
But Medicaid has strict rules. To qualify, your countable assets must be under a very low limit — $2,000 for an individual in Georgia. That means most people with a home, savings, or retirement account may not qualify unless they plan.
Medicaid planning: A smart estate strategy
Medicaid planning is a type of estate planning that helps protect your assets while ensuring you qualify for Medicaid when you need care.
Without a plan, your savings may be spent entirely on long-term care. With the right strategy, you can preserve what you’ve worked for and still receive necessary benefits.
Here’s how it works:
- Irrevocable trusts
You can transfer assets — like your home or savings — into a Medicaid Asset Protection Trust (MAPT). If done five years before applying, those assets won’t count against Medicaid limits. You may qualify without losing everything.Special Needs Trusts (SNTs) can also help disabled loved ones qualify for Medicaid while still receiving financial support. - Gifting (plan ahead)
Gifting assets might seem easy, but Medicaid’s five-year look-back rule means transfers during that time can lead to penalties or delays in coverage. That’s why it’s crucial to plan early with a qualified attorney. - Spousal protections
If one spouse needs care and the other does not, Medicaid allows the healthy spouse to keep some income and assets.Tools like the Community Spouse Resource Allowance (CSRA) and Minimum Monthly Maintenance Needs Allowance (MMMNA) help avoid financial hardship. - Medicaid-compliant annuities
These special annuities turn extra assets into income, helping applicants qualify for Medicaid while keeping some financial stability. They must be carefully structured to meet legal standards.
The five-year look-back period
Medicaid reviews your finances going back five years. If they find that you gave away or transferred assets for less than market value, you may face a delay in benefits.
This is why early planning is critical. Waiting until a health crisis hits often means fewer options, more stress, and higher financial risk.
What if you have too many assets?
If your assets exceed the Medicaid limit, you may need to “spend down,” which means using the extra funds for approved expenses like care, home improvements, or medical bills.
While legitimate, spending down without a strategy can leave you with nothing for your spouse, children, or grandchildren. Medicaid planning helps avoid this by preserving assets legally and strategically.
Why do you need legal guidance?
Medicaid rules are complicated, and they vary by state. Mistakes — like transferring assets too late or using the wrong type of trust — can disqualify you or delay your benefits.
Working with an experienced elder law attorney can help you:
- Choose the right type of trust;
- Time your transfers correctly;
- Protect your spouse and family;
- Navigate Medicaid’s strict income and asset limits; and
- Avoid costly errors and penalties.
Don’t wait until it’s too late
Planning for long-term care isn’t just smart, it’s necessary. If you want to protect your health, your wealth, and your family’s future, Medicaid planning should be a top priority in your estate plan.
At The Estate & Asset Protection Law Firm, we help families all across Georgia create strategies that preserve assets and ensure peace of mind. Whether you’re years away from needing care or dealing with it now, we can help.
Call us today at 404-370-0696 to start your Medicaid plan, and protect everything you’ve worked so hard to build.
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!
