MN Nursing Home Planning
Plan Ahead for Nursing Home Care
The cost of typical nursing home care has risen to approximately $6,000.00 per month. Many people are concerned that paying for this care for an extended period will completely deplete their estate. While this cost can be covered by insurance, the cost of the insurance is also quite high.
There are several ways of preserving estates against these expenses. Usually, these involve transferring assets into different ownership, either into a trust created for that purpose, or to other individuals. In addition, state laws require that the asset transfer take place five years before a person enters the nursing home. While this level of planning is fairly involved, it can make sense as five years of nursing home care can cost $360,000.00.
There is also the opportunity to preserve assets even if no planning has been done prior to a person’s entry into the nursing home. Rather than allowing the complete depletion of all of a person’s assets, if a transfer is made when a person goes into long term care, the person is eligible for medical assistance after five years. So, during that time, the person’s nursing home expenses must be paid from another source.