• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Nirenstein, Horowitz & Associates P.C.

Estate Planning | Making a Difference One Family at a Time

An Estate Planning Law Firm
Making a Difference One Family at a Time

Call Now: (860) 548-1000

Attend a Complimentary Seminar
  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • RSS
  • Twitter
  • YouTube
  • Home
  • Our Firm
    • About Our Firm
    • Careers
    • Client Testimonials
    • Meet Our Team
  • Services
    • Asset Protection & Business Planning
    • Estate And Gift Tax Figures
    • Estate Planning
    • LGBTQ Estate Planning
    • Loss of a Loved One
    • Pet Planning
    • Powers of Attorney
    • SECURE Act
    • Special Needs Planning
    • Trust Administration and Probate
  • Elder Law
    • Alzheimer’s Disease
    • Caregiver Information
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
  • Resources
    • Complimentary Estate Planning Worksheet
    • Complimentary Medicaid/Long-Term Care Calculator
    • DocuBank
    • Elder Law Resources
      • Glastonbury Elder Law Resources
    • Estate Planning Articles
    • Estate Planning Checkup
    • Estate Planning Definitions
    • Estate Planning Presentations
    • Estate Planning Seminars
    • Estate Planning Techniques
    • Frequently Asked Questions
      • Asset Protection and Business Planning
      • Elder Law & Medicaid
      • Estate Administration
      • Estate and Gift Tax
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • In-Home Elder Care
      • Irrevocable Trusts
      • LGBTQ Estate Planning
      • Living Trust
      • Medicaid Planning
      • Nursing Home Asset Protection FAQs
      • Probate
      • Probate Avoidance
      • SECURE Act 2.0
      • Trust Administration
      • Wills
    • Newsletters
    • Probate Resources
      • Probate Resources
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • Seminars
  • Communities We Serve
    • Fairfield County
      • Darien
      • Fairfield
      • Stamford
    • Hartford County
      • Avon
      • Hartford
      • Simsbury
      • West Hartford
    • Litchfield County
      • Watertown
    • Middlesex County
      • Middletown
      • Old Saybrook
    • New Haven County
      • Middlebury
      • New Haven
    • New London County
      • Groton
      • Old Lyme
      • Stonington
    • Tolland County
      • Mansfield
    • Windham County
      • Woodstock
  • REVIEW US
  • Blog
  • Contact Us
Home » Elder Law » This Mistake Can Devastate Your Legacy

This Mistake Can Devastate Your Legacy

July 5, 2022 by John McCann, Estate Planning Attorney

elder care planningWhen you have been planning for retirement and it is coming into focus, you may have a pretty good idea of what you will be able to leave to your loved ones. You have anticipated your retirement budget, and you have considered contingencies, so you feel comfortable.

Of course, there are those that have not planned exhaustively, but they expect to be able to pass along suitable legacies. Unfortunately, we have found that there is one expense that a lot of people overlook, and it can have a devastating impact on your inheritance plans.

Put Aging in Perspective

You would not be able to fully grasp the way that you feel right now 20 years ago, and this the way of life. When you are in your 60s, you won’t be able to envision exactly how things will be when you are in your 80s.

Once you are 67, your life expectancy is at least 85 years depending on your gender, so you should proceed with this understanding. Over 30 percent of the oldest old contract Alzheimer’s disease, and many others are unable to handle their own needs for different reasons.

The United States Department of Health and Human Services tells us that 35 percent of seniors will reside in nursing homes, and over 50 percent will incur some type of long-term care costs.

Will Medicare Help?

Medicare will come to mind when you hear about long-term care costs, and this is understandable. It is the country’s health insurance program for seniors, and the statistics indicate that most senior citizens will be inundated with long-term care bills.

In fact, Medicare does not cover a stay in a nursing home, and it will not pay for in-home care or an assisted living facility. The median annual charge for a private room in a nursing home in Hartford last year was just under $180,000, and one year is the average length of stay.

For a home health aide, you are looking at $67,000, and these costs went up by 17 percent year-over-year. If the increases persist, the costs will be far greater years from now.

When two married people require nursing home care, the family expenses are doubled, so this is a major threat to your legacy unless you have very deep pockets.

Elder Care Planning

You can address this looming challenge if you work with our firm to develop a nursing home asset protection strategy. It will revolve around Medicaid eligibility, because this program will pay for long-term care.

This is a need-based benefit, so you cannot qualify if you have more than $1600 in assets that are accountable. In spite of the way that sounds on the surface, there are steps that you can take to prepare for eligibility while you maintain your lifestyle.

An irrevocable, income only Medicaid trust is the widely embraced solution. As the name would indicate, you cannot revoke the trust or access the principal after it has been established. However, you can accept distributions of the earnings from income producing assets in the trust.

This can allow you to live comfortably, and many people have no intention of spending the source of their retirement income. As a result, nothing would really change, but the assets will be out of your name for Medicaid eligibility purposes.

You could also convey your home into the trust to protect it during the Medicaid recovery phase. A homeowner can qualify for Medicaid, but they can put a lien on the home after the beneficiary’s passing. If it is held by the trust, it would not be part of the estate, so it would be protected.

Attend a Complimentary Seminar!

As you can see, your estate plan should definitely include an elder care planning component. If you would like to obtain more details, attend one of our seminars. There is no charge, and you can visit our seminar schedule page to see the dates and registration information.

Need Help Now?

Our attorneys would be glad to help if you are ready to engage a Glastonbury, CT estate planning lawyer to develop a plan for aging. You can send a message through our contact page to request an appointment, and we can be reached by phone at 860-548-1000.

 

 

 

  • Author
  • Recent Posts
John McCann, Estate Planning Attorney
John McCann, Estate Planning Attorney
Estate Planning Attorney at Nirenstein, Horowitz & Associates PC
John McCann is a partner with the law firm of Nirenstein, Horowitz & Associates, P.C. He received his bachelor of arts degree in economics from the University of Virginia and his master of arts degree in economics from Trinity College in Hartford. He received his law degree from the University of Connecticut School of Law.

Mr. McCann is licensed to practice before the courts of the State of Connecticut. He is a member of the American Academy of Estate Planning Attorneys.

Mr. McCann provides to his clients, trust and estate planning, and trust and estate administration services. Formerly, Mr. McCann was an adjunct professor of economics in the State of Connecticut Community College system, and a Commissioner of the Town of Simsbury Zoning Board of Appeals.
John McCann, Estate Planning Attorney
Latest posts by John McCann, Estate Planning Attorney (see all)
  • The Last Note: Crafting a Comprehensive Letter of Final Instructions - September 19, 2023
  • The Gift of Education Can Be Part of Your Estate Plan - August 31, 2023
  • Be Aware of the Medicaid Caregiver Child Exemption - August 15, 2023
Share our Content:

Filed Under: Elder Law Tagged With: elder care planning, Medicaid Planning, nursing home asset protection

Other Articles You May Find Useful

legacy protection
Take Precautions to Protect Your Legacy
Medicaid child caregiver exemption
Be Aware of the Medicaid Caregiver Child Exemption
Medicaid planning, Medicaid estate recovery mandate
Medicaid Estate Recovery Mandate Is Under Siege
elder financial abuse
Understanding and Combating Elder Financial Abuse
Medicaid planning
Medicaid Planning: What About the Healthy Spouse?
Medicaid planning
Does Medicare Cover Nursing Home Care?

Primary Sidebar

Nirenstein, Horowitz & Associates

Upcoming Seminars

Estate Planning Seminar

Date: October 17

Venue: Canton Community Center, 40 Dyer Avenue, Collinsville, CT, 06019, United States

Estate Planning Seminar

Date: October 18

Venue: Cheshire Public Library, 104 Main Street, Cheshire, CT, 06410, United States

See all Seminars

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

TESTIMONIALS

Blog Subscription

Our blog gives you the most up-to-date estate planning news. Sign up today to receive our regular updates!

  • This field is for validation purposes and should be left unchanged.

WESTPORT OFFICE

8 Wright Street, Suite 107
Westport, CT 06880
Phone: (860) 548-1000
Fax: (860) 761-1070
preserveyourestate_sidbr_map

Somerset Square

200 Glastonbury Boulevard, Suite 202
Glastonbury, CT 06033-4418
Phone: (860) 548-1000
Fax: (860) 761-1070
preserveyourestate_sidbr1_map

Office Hours

Monday8:30 AM - 5:00 PM
Tuesday8:30 AM - 5:00 PM
Wednesday8:30 AM - 5:00 PM
Thursday8:30 AM - 5:00 PM
Friday8:30 AM - 5:00 PM

Footer

footer-logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc.