alabama Long tErm
Care Planning

HOW TO PAY FOR LONG-TERM CARE

Discover your ideal long-term care options in Birmingham, AL, with Legacy Law Services. Taking charge of your future, you’ve likely built your life from the ground up, overcoming various challenges through hard work and determination.

PAYING FOR LONG-TERM CARE

Much like our clients, you take pride in your self-made success. However, contemplating long-term care can be daunting. Recognizing the difficulty in facing such topics, Legacy Legal Services has created this website as a resource for gathering information about long-term care from the comfort of your home.

BE INFORMED

Entering a nursing home or assisted living facility for long-term care raises concerns about quality and cost. As these services aren’t covered by Medicare or regular health insurance, becoming an informed consumer is crucial. With average costs exceeding $8,000 per month, planning ahead is essential.

OUCH!

Considering the potential financial impact of long-term care, the question becomes, “How do you pay for it without depleting your resources?” Let’s explore the three primary ways:

1. Self-Pay:
If you’ve saved enough, self-payment is an option. However, with annual costs exceeding $100,000, substantial savings are necessary to avoid financial strain.

2. Long-Term Care Insurance:
Early exploration of long-term care insurance is advised. Look for policies with fixed premiums and potential benefits for beneficiaries if unused.

3. Public Benefits:
Medicaid or Veteran’s Benefits offer assistance but require early planning. Understanding eligibility and pre-planning are essential steps.

HOW MEDICAID AND TRUSTS INTERSECT

Navigating Medicaid and trusts is complex, and consulting a Birmingham, AL, Medicaid attorney is recommended. Medicaid trusts, like Miller trusts, can protect assets and help with long-term care expenses. A Miller trust, recognized in Arizona, allows income to be assigned, aiding Medicaid eligibility.

MILLER TRUST ELIGIBILITY

Eligibility for Medicaid allows anyone to create an income trust account. Disabled individuals with a financial power of attorney or a competent spouse can set up a Miller trust. Exclusions exist for certain income types, and proper setup is essential.

MILLER TRUST AND INCOME

Married individuals may withdraw a larger share of income from the trust, aiding in-home care expenses. The trust ensures a cost-effective approach, incentivizing home health aides over nursing home care.

WHAT HAPPENS TO ASSETS

Upon discontinuation of services or death, the state claims assets from the Miller Trust, recouping costs paid on behalf of the beneficiary. The AHCCCS must be named as the remainder beneficiary.

MEDICAID & SPECIAL NEEDS TRUSTS

Arizona’s disabled individual under age 65 trusts are for those exceeding ALTCS limits. Funded before age 65, these trusts exclude assets when determining ALTCS eligibility.

MEDICAID RULES AND REVOCABLE TRUSTS

Medicaid considers revocable trusts as owned assets, while only irrevocable trusts qualify. A revocable trust, set up within 60 months of applying for Medicaid, could incur a penalty.

Navigating the complexities of long-term care and Medicaid involves strategic planning, and Legacy Law Services is here to guide you through the process. Consult with our experienced Birmingham, AL, Medicaid attorney for personalized assistance in safeguarding your future.