Estate Planning | Making a Difference One Family at a Time

//  by 

long-term care planningEveryone knows that some seniors need help with their day-to-day needs. However, a “that will never happen to me” mentality can arise when you have always been strong and independent.

Is long-term care planning really necessary if you have taken good care of yourself? The answer is open to interpretation, but the statistics speak for themselves.

Sobering Facts About Long-Term

According to the U.S. Department of Health and Human Services, seven out of ten people who reach the age of 65 will need living assistance. About 35 percent will spend time in nursing homes, and the average length of stay is 12 months.

Family members and friends provide unpaid care for some seniors, but just over half of American elders will incur long-term care expenses.

Healthy Lifestyle Is a Double-Edged Sword

When you look at these figures, you may feel pretty confident if you think that you have made healthier choices than most people. The benefits of this are self-evident, and one of them is the expectation of increased longevity.

As you start to reach an advanced age, Alzheimer’s becomes a looming threat. It strikes about one-third of the oldest old, and this disease is not the only cause of cognitive impairment. A very significant percentage of elders with Alzheimer’s disease require nursing home care.

Long-Term Care Costs

Paying for a stay in a nursing home out of pocket is not a very pleasant prospect unless you have very deep pockets. In our service areas, the median charge for a private room in a nursing home in 2025 is about $230,000 a year.

If you can receive the care you need in your own home from a professional, you are still looking at a significant expense. This year, the median annual charge for an in-home health aide in Westport and Glastonbury is just over $80,000.

Medicare Misconception

Since Medicare is health insurance for seniors, and long-term care is a senior healthcare concern, it’s natural to assume that Medicare will pay for living assistance.

Unfortunately, nursing homes and in-home caregivers provide custodial care rather than medical care. Medicare does not extend to custodial care, so this is not the solution.

What Can You Do?

Medicaid will cover long-term custodial care if you can gain eligibility. Since it is a need-based benefit, there is a $1,600 per-person asset limit in Connecticut, but some assets don’t count.

Here’s a list of non-countable assets:

  • Wedding rings, engagement rings, and heirloom jewelry
  • Up to $1,500 earmarked for final expenses
  • Unlimited term life insurance
  • Personal belongings
  • Household items
  • One motor vehicle
  • Your home (with an equity limit of $1.097 million in Connecticut in 2025)

Though your home is not a countable asset, it is not wise to qualify for Medicaid as a homeowner. If you do so, the program will endeavor to place a lien on your property after your death when they try to recover expenses from your estate.

Medicaid Planning Strategy

When you work with an elder law attorney from our firm, you can implement an intelligent Medicaid planning strategy. It will typically revolve around an irrevocable trust, and here’s how it works.

Ideally, you convey income-producing assets to the trust along with other valuable property, including your home. When you fund the trust in this manner, you surrender direct control of the assets. They are managed by a trustee whom you choose, but you can live in your home as usual.

As long as you fund the trust at least five years before you apply for Medicaid, the assets in it will not count. However, before you seek eligibility, you can continue to accept income earned by assets in the trust. As a result, you should be able to maintain the same lifestyle.

We Are Here to Help!

There is no reason to take chances with your legacy. When you work with our firm, you will come away with a comprehensive plan that protects your wealth for the benefit of your loved ones.

We have a Glastonbury, CT elder law office, and another location in Westport, and you can call us at 860-548-1000 to set up a consultation at either office.

If you would rather send us a message, fill out our contact form, and we will be back in touch with you as soon as possible. We also invite you to join us at a Complimentary Seminar so you can see just how important it is to have a plan in place.

John McCann, Estate Planning Attorney
Latest posts by John McCann, Estate Planning Attorney (see all)
Spread the love