Medicaid planning seeks to ensure that your assets provide you quality care while maximizing what you pass on to your heirs.  The probability that you will need long-term care is extraordinarily high:

  • More than half of those turning 65 will need some type of long-term care services in their lifetimes.
  • As life expectancy continues to increase, the probability of long-term care increases.
    • 17% of those age 75 to 84 need long-term care services.
    • That number jumps to 42% for those who reach 85.
  • 38% of Americans over age 85 will have Alzheimer’s type dementia.
  • The average cost of care in a nursing home in Dallas, Texas is $68,163.00 a year.  Nicer facilities can cost significantly more.

Therefore, there is a high likelihood that you or your spouse will need long-term care, that the cost will be in the hundreds of thousands of dollars, and neither Medicare, private insurance nor Veteran’s benefits pay for long-term care’s full expenses.  Long-term care insurance is something to be investigated, but it is expensive and really needs to be purchased long in advance of reaching the age of needing long-term care.

Medicaid planning can preserve substantial assets to supplement a senior’s care and to pass those assets to your descendants while receiving quality care.  So, while Medicaid planning can cost several thousand dollars, you can potentially protect hundreds of thousands of dollars of assets that otherwise would go to the government or long-term care providers.  You can fully protect:

  • Your homestead
  • Family farms and ranches
  • Vacation properties
  • Mineral interest
  • Investment accounts
  • Collectibles
  • Art and antiques

Virtually any asset can be part of a Medicaid protection plan.  Whether Medicaid planning is worth it for you is based on your personal decisions after a consultation with an attorney.  At Pyke & Associates, we conduct no-cost consultations to determine if Medicaid planning is right for you, and then we state the cost up front and clearly so that you can decide whether Medicaid planning is worth it for you.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, specific tax, legal or accounting advice. We can only give specific advice upon consulting directly with you and reviewing your exact situation.