Modern medicine is allowing people to live much longer than they did in the past. Because of this, elderly individuals all over the country are doing their best to prepare for the long haul. One of the important parts of this sort of preparation is Medicaid planning and it allows residents of Boston to be prepared for the costs that will likely come with getting older.
Perhaps the highest cost for older individuals is home health care or care received while living in a nursing home. The expenses associated with such care can be extremely costly. One woman spent $300,000 worth of savings over a six-year period in order to care for herself. Instead of using that savings to pay for her care, she could have protected it with proper planning. Many people seek out long-term care insurance to cover such costs and alleviate the need for massive amounts of spending when seeking such care.
Once she used up her savings, the woman was eligible for Medicaid, which requires that a person has less than $14,800 in assets. She is now 92 years old and suffers from dementia. She also relies on Medicaid to cover the costs of the care she receives from the nursing home where she lives. Without Medicaid, she would not be able to live as comfortably as she currently does.
Many elderly people save so that they can leave their estate to their loved ones when they pass away. If their savings are spent on long-term care, they may have nothing left to give to their family at their death. Add in estate taxes, and you may be able to understand why so many are currently planning for the future. There are many ways that an estate can be depleted and only certain protections can save the estate from meeting such a fate.
Source: Melodika, "Medicaid Planning: Plan For Long-Term Care To Save Money For Your Family," Dec. 19, 2012