Although Long-Term Care is often associated with "nursing-home care," such care may be provided in one's private residence, an assisted living facility and in community settings, such as adult day care. Generally there are three sources of funds to pay for long-term care: Medicaid, insurance and personal assets.
The rules for Medicaid eligibility are strict and complex. Relying on public assistance may impose unnecessary financial and emotional burdens on the patient and family. Further, even if an individual is eligible for assistance, there is no guarantee that the level or location of care will comport with the wishes of the patient and the patient's family.
The high cost of long-term care may quickly dissipate one's personal assets, however the appropriate long-term care insurance coverage tends to leverage today's dollars and efficiently manage future risk.
Privately paying for care with one's personal assets or through insurance coverage offers the greatest degree of flexibility in choosing the venue and level of care. These options require professional financial advice and planning. A competent financial professional may suggest the appropriate insurance coverage from a myriad of alternatives; maximize investment income and minimize investment risk; and "find" the funds to pay for either insurance or care.
One often overlooked source of funds to pay for care or insurance is one's personal residence. In the appropriate case, a reverse mortgage permits a person to use home equity as a source of funds. A Reverse Mortgage is a non-recourse loan, in the form of a line of credit, regular payments or a lump sum, that requires no monthly payments. The borrower or the estate of the borrower repays principal plus interest when the borrower sells the house or dies. The payoff amount may never exceed the fair market value of the home at sale or date of death.
The rules and alternatives are complicated. Competent advice is essential.
|
Attorney-
at- Law |
Tel:
(732) 409-3209 |