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As we age, the possibility of needing long-term nursing home care increases. Preparing for this eventuality is crucial, especially given the high costs associated with such care. Understanding the intricacies of Medicaid and effective pre-planning can help you protect your assets and ensure that you receive the care you need. Here’s what you need to know about pre-planning for long-term nursing home care in New York.

Understanding Long-Term Nursing Home Care

Long-term nursing home care is designed to provide assistance with daily living activities for individuals who cannot live independently. This care can be costly, with average expenses often exceeding $200,000.00 annually in New York. Given these costs, many individuals turn to Medicaid for assistance.

The Role of Medicaid

Medicaid is a state and federal program that provides healthcare coverage for eligible low-income/low-asset individuals, including those needing long-term care. However, qualifying for Medicaid can be complex, especially if you have significant assets.

Key Considerations for Pre-Planning for Long Term Care and Medicaid:

Asset Protection Strategies

• Understand the Asset Limitations: In New York, single individuals must have no more than $31,175.00 in countable assets to qualify for Medicaid. Married couples have different thresholds, with combined resources considered.
• Gift and Transfer Strategies: To qualify for Medicaid, you may consider transferring assets to loved ones or setting up trusts. However, be mindful of the five-year look-back period, during which any transfers may impact your eligibility. Consulting with an attorney can help you navigate this process effectively.

Insurance for Long Term Care Protection

Investing in insurance for long term care protection can be a proactive strategy. Policies can help cover the costs of nursing home care, reducing the financial burden on your family and preserving your assets. Be sure to compare policies carefully, as coverage and premiums vary widely.

Create a Comprehensive Estate Plan

A well-structured estate plan can help you manage your assets and make informed decisions about your care. Key components include:

• • Wills and Trusts: Establishing a trust can allow you to maintain control over your assets while also providing for your needs in the event of incapacity.
  • Power of Attorney: Designate someone to make financial decisions on your behalf during your lifetime, if necessary.
  • Health Care Proxy: A health care proxy allows you to appoint someone to make medical decisions for you if you are unable to do so.

Consult with Elder Law Professionals

Navigating Medicaid and long-term care planning can be complex, particularly in New York, where regulations change on a yearly basis. Consulting with an experienced elder law attorney can provide invaluable guidance, ensuring that your plan aligns with current laws and your individual needs.

The Importance of Early Planning

Starting your planning early is key to maximizing your options and protecting your assets. Many people wait until a health crisis arises, at which point their choices become limited. By proactively engaging in planning, you can:

• Preserve Assets: Proper planning can help safeguard your wealth for future generations.
• Ensure Quality Care: Having a plan in place allows you to choose the type of care and facility that aligns with your preferences.
• Reduce Stress for Family Members: Clear directives and a well-structured plan can alleviate the burden on your loved ones during difficult times.

If you would like to schedule a consultation to talk about creating or updating your estate planning, please feel free to contact our estate planning attorneys, Daniel S.Williford at dwilliford@mccmlaw.com or call him at 585-512-3511; or  Spencer C. Malone at smalone@mccmlaw.com or call him at 585-512-3550; or Michael F. McConville at mmconville@mccmlaw.com or call him at 585-512-3517.

This publication is intended as an information source for clients, prospective clients, and colleagues and constitutes attorney advertising. The content should not be considered legal advice and readers should not act upon information in this publication without individualized professional counsel.

About MCCM

McConville Considine Cooman & Morin, P.C. is a full-service law firm based in Rochester, New York, providing high-quality legal services to businesses and individuals since 1979.  With over a dozen attorneys and a full paralegal support staff, the firm is well-positioned to right-size services tailored to each client. We are large enough to provide expertise in a broad range of practice areas, yet small enough to devote prompt, personal attention to our clients.

We represent a diverse range of clients located throughout New York State and New England.  They include individuals, numerous manufacturing and service industry businesses, local governments, and health care professionals, provider groups, facilities and associations. We also serve as local counsel to out-of-state clients and their attorneys who have litigation pending in Western New York courts.  For more information, please contact us at 585.546.2500.