While nursing homes provide essential care and support for seniors, the financial aspect of things can feel overwhelming. Between the high costs, insurance complexity and the fear of loosing assets, families can feel anxious about this journey.
In this article, we’ll break down the costs, explore financial options and help protect your assets. Read on to get the real view of expenses and get a clear answer on the common query: “Do nursing homees take all your money?”
Do Nursing Homes Take All Your Money? (Quick answer)
Nursing homes and long-term care facilities require payment for their services, but they do not necessarily take all of a person’s money. In addition, nursing homes do not seize all your assets.
Understanding Nursing Home Expenses
When one gets admitted into a nursing home, they are responsible for ensuring the costs are catered for. Unfortunately, living in a nursing home is expensive and the average monthly costs are from $7,000.
Since most seniors are retired and have no regular source of income, many use their personal funds, including savings, pensions, or investments, to cover the costs.
For those that are economically challenged, government programs such as Medicaid cover long-term nursing home costs for eligible individuals. Medicaid requires one to have a certain low amount of resources to get support.
Spending personal money to pay for nursing home care eventually leaves one with little amounts of money. Therefore, most people eventually get to have Medicaid to cover nursing home costs.
Does Medicaid Take All Your Money?
While Medicaid has some financial requirements for individuals to qualify, it does not take away all your money. Eligibility for Medicaid varies in different states. Medicaid has both asset and income limits for a person to qualify.
Medicaid rules and eligibility are different depending on the state’s economic factors and regulations. Therefore, when applying, it is essential to consider an elder law attorney in your state to provide valid guidelines.
How to Prevent Money from Running Out Due to Nursing Home Expenses
Nursing homes may not take all your money but the costs can run your bank and assets dry. Here’s what you can do to prevent your pockets from going dry:
Long-term care Insurance
Long-term care insurance helps cover the costs of nursing homes and provides a long-term financial plan to cover expenses, therefore protecting assets and money from getting depleted due to nursing home costs.
You can consider purchasing long-term care insurance for yourself or a loved one before going to a nursing home to ensure financial stability when nursing home costs come in.
Plan Early
No one looks forward to go into a nursing home but planning in advance can offset some of the financial burden experienced due to nursing home costs.
Planning early includes consulting with various experts on finances, assets, insurance, and estates. Doing these consultations allows one to explore financial options and make informed decisions about nursing home costs. In addition, such experts off valuable financial strategies to plan ahead.
Consider Asset Protection Trusts
If you want to protect your assets, you can consider the irrevocable trust. Setting up a trust is a way to safeguard assets from the high costs of nursing homes in the event finances are depleted.
Note that the trusts can be complicated and you require an elder law attorney’s assistance in getting one.
Maximize on Benefits Plans
Research and apply for benefits or programs that are designed to assist with nursing home expenses. This includes government programs such as veterans’ benefits for those who served before. In addition, research organizations in your area that help out with nursing home expenses.
Financial Exploitation in Nursing Homes
Sadly, the physical and mental condition of seniors in nursing homes makes them vulnerable to financial exploitation in nursing homes. While the nursing home has good staff, there are some malicious people who will try and exploit seniors.
Here’s what financial exploitation looks like in nursing homes:
- Theft of money or belongings in the nursing home
- Unauthorized use of credit or debit cards
- Coercing residents into changing their wills or powers of attorney
- Abuse of existing power of attorney
- Pressuring residents to provide gifts or loans
How to Prevent Financial Abuse in Nursing Homes
It is good to be on guard for the financial exploitation of your loved one in a nursing home. Here’s how to prevent financial abuse:
- Maintaining open communication with the staff
- Be vigilant about monitoring financial accounts for your loved one
- Ensure legal documents are in order
- Review nursing home staff prior to admission
- Maximize automatic payments instead of using manual methods
FAQs
How long do people last in nursing homes?
Most people last at least twelve months and others live for years in the nursing home. The stay depends on the health of the individual.
Can you be in a nursing home without money?
The best way to sustain yourself in a nursing home with no money is to apply for assistance such as Medicaid. Nursing homes require one to pay for the expenses of care.