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Planning Ahead: Part Six
Dunn & Hemphill, PA • Nov 29, 2020
An Introduction to Long-term Care Planning
When we ask our clients how they will pay for their long-term care, many quickly respond saying, “I’m not going to the nursing home!” The reality is that a majority of Americans will spend some time in the nursing home, and for more than ten percent of us that stay will be for five years or longer.
A semi-private room in local nursing homes costs roughly $90,000 per year! This expense will break the bank even for hard working, smart saving people. In Mississippi, Medicaid can pay for your nursing home care if you are over 65, blind, or disabled and you are eligible based on your medical needs, income, and resources. To qualify for “nursing home” Medicaid, you can have no more than $4,000 of countable resources and $2,349 of monthly income. A married couple, one who needs skilled nursing care and the other able to live at home (“community spouse”), can have combined countable resources of $128,640. There is no limit to the community spouse’s personal income, and if the community spouse’s income is less than $3,216/month, a portion of the nursing home spouse’s income will be allocated to the community spouse so that his or her income equals $3,216/month. For married couples in which both spouses are in a nursing home, the couple can have only $6,000 of countable resources between them. These resource and income limits are applicable in 2020 but may be adjusted annually.
The key to qualification for most people is converting countable resources to exempt or non-countable resources. In our next post, we will share asset protection planning strategies.
A semi-private room in local nursing homes costs roughly $90,000 per year! This expense will break the bank even for hard working, smart saving people. In Mississippi, Medicaid can pay for your nursing home care if you are over 65, blind, or disabled and you are eligible based on your medical needs, income, and resources. To qualify for “nursing home” Medicaid, you can have no more than $4,000 of countable resources and $2,349 of monthly income. A married couple, one who needs skilled nursing care and the other able to live at home (“community spouse”), can have combined countable resources of $128,640. There is no limit to the community spouse’s personal income, and if the community spouse’s income is less than $3,216/month, a portion of the nursing home spouse’s income will be allocated to the community spouse so that his or her income equals $3,216/month. For married couples in which both spouses are in a nursing home, the couple can have only $6,000 of countable resources between them. These resource and income limits are applicable in 2020 but may be adjusted annually.
The key to qualification for most people is converting countable resources to exempt or non-countable resources. In our next post, we will share asset protection planning strategies.
Planning Ahead Part 1: The Building Blocks of an Estate Plan
Planning Ahead Part 2: The Last Will and Testament
Planning Ahead Part 3: The Durable Power of Attorney
Mississippi's New Transfer-on-Death Deed
Deed with Reservation of a Life Estate
Defining Exempt and Non-Countable Resources
Gifting Assets and Medicaid Asset Protection Trusts
**We offer a free 30-minute consultation upon completion of the intake form in advance for estate planning matters.
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Phone: (662) 327-4211
Address: 214 5th St Columbus, MS, 39701
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