When it comes time to think about nursing home costs, it can cause some headaches. Yes, you know it is something that may come up in the future but figuring it out can be stressful.
In Wisconsin, nursing home care can run anywhere from $5,000 to $10,000 a month. This is not something you want to leave to chance. Without a plan, years of hard work and savings can disappear.
With some advance planning and a few smart strategies, you can protect your assets while still making sure you or a loved one gets the care you need. Here is how to protect your assets from nursing home costs in Wisconsin.
The Financials of Nursing Home Care
Nursing home care in Wisconsin is not cheap. Even a short stay can put a serious dent in your finances. Unfortunately, those long-term stays can drain savings completely.
Medicaid is often the safety net for many people. However, it comes with rules. In Wisconsin, if you are applying as a single person, your monthly income must be under $2,901, with your countable assets under $2,000.
For married couples, the spouse staying at home is known as the community spouse. They can keep up to $130,380 in countable assets. The house, personal belongings, and a vehicle are usually not counted against Medicaid eligibility.
Strategies to Protect Your Assets
With that in mind, you need to take steps early to protect your assets. Otherwise, you may not qualify or could have those assets seized to pay for costs. Some of these strategies may include:
Irrevocable Trusts
An irrevocable trust acts as a secure vault for your assets. Once you transfer assets into it, they are not considered yours for Medicaid purposes. These assets can protect things like your home or savings.
However, there’s a catch: Medicaid has a five-year look-back period. If you transfer assets into a trust within five years of applying for Medicaid, you could face penalties or delays in coverage. Timing is key, and planning ahead pays off.
Long-Term Care Insurance
Long-term care insurance is another safety net. Not only can it help cover nursing home costs, but it can also help if you get a policy that qualifies under Wisconsin’s Long-Term Care Insurance Partnership Program.
This can also help protect your assets while still qualifying for Medicaid later. You will want to look for policies with inflation protection. Along with that, you may consider getting coverage sooner rather than later, especially while you are still healthy.
Spousal Protections
If one spouse needs nursing home care, the other can retain a portion of the couple’s assets. Wisconsin allows the community spouse to keep up to certain amount of assets. This makes sure that the spouse staying at home is not left destitute.
Gifting and Asset Transfers
You might think about giving assets to loved ones to qualify for Medicaid. However, you will need to proceed with caution. Medicaid’s rules about asset transfers are strict.
Once again, if you give away money or property within the five-year look-back period, that can lead to penalties and temporarily make you ineligible for Medicaid. Before making any major transfers, you may want to talk with an elder law attorney to discuss your options.
Medicaid Asset Protection Trusts (MAPTs)
MAPTs are specialized irrevocable trusts designed specifically for Medicaid planning. These trusts can help you qualify for Medicaid while preserving assets for your heirs.
To maximize their effectiveness, they need to be set up well in advance of needing care. While establishing these trusts does involve costs, the protection they provide is well worth it for many families.
Find the Right Legal Help to Protect Your Assets
Protecting your assets from Wisconsin’s nursing home costs gives you peace of mind. With the right planning, you can make sure that your savings, home, and other valuables are preserved for the people you love while still accessing the care you may need.
At Collins Law Firm, we are here to help you plan ahead. We will work to protect your legacy and make sure you or your loved ones do not have to worry about future financial issues. Schedule your consultation to discuss your options today.