We all want to make sure that our loved ones are taken care of after we pass away, but what if you find out that your parents’ hard-earned assets are at risk of being lost due to medical expenses or long-term care costs? Unfortunately, this is becoming a common occurrence as healthcare costs continue to rise. The good news is that there are ways to protect your parents’ assets and ensure their inheritance does not disappear. In this blog post, we will discuss why planning is crucial for your parents’ assets and what you can do to protect them.
Your Parents Need a Plan in Place
Your parents’ financial legacy is at risk if they do not have a plan in place in case they require long-term care. According to the US Department of Health and Human Services, over 75% of older adults need long-term care, and that number is increasing. Without proper planning, their hard-earned assets can be lost to the cost of long-term care, resulting in little to no inheritance for their children and loved ones.
Medicaid Planning
One option to protect your parents’ assets is through Medicaid planning. This is where an elder law attorney can help you develop a legal strategy to protect your parents’ assets while ensuring they receive the long-term care they may require. This is important because Medicaid is a means-tested program that only covers medical expenses for those with minimal income and assets. Medicaid may deny their application if your parents have significant investments and need long-term care. That is why planning is so important.
Establish a Trust
Another option to protect your parents’ assets is by establishing a trust. Trusts allow individuals to transfer assets to beneficiaries while retaining some control over the assets. This means that your parents can give their children or other beneficiaries gifts while maintaining some control over them. Trusts can be structured in many ways, so it is important to work with an elder law attorney who can help create a trust that best suits your parents’ needs.
Exemptions
In some cases, your parents may take advantage of certain exemptions that allow them to protect their assets from being used to pay for long-term care costs. For example, New York State has a program called Medicaid “spend-down” exemption that allows people to keep their homes and other assets, even if they need long-term care. It is important to work with an elder law attorney who understands the different exemptions available and how to utilize them.
Planning ahead is crucial to protect your parents’ assets and preserve their inheritance for loved ones. With the help of an elder law attorney, you can create a legal strategy that protects your parents’ assets while still ensuring they receive the long-term care they may need. Do not wait until it is too late to start thinking about protecting your parents’ assets. Take action and start planning for their future today. Together, we can help you safeguard your inheritance and provide for your family’s future. Contact us today.