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LONG-TERM CARE PLANNING 2008

Sally M. Wagley, Esq., Levey & Wagley, P.A., Winthrop, Maine

Long term care is expensive.  Nursing home care in Maine now averages $6,800 per month.  Residential care (also called assisted living or boarding home) costs $3,500 to $6,000 per month.  Home care costs vary, from hundreds to thousands of dollars per month depending on the amount of care needed.  Medicare provides coverage only on a very temporary or limited basis. 

While most people prefer to stay home and be cared for by family, this may not be possible when an older person becomes very ill or frail and needs professional or around-the-clock care.

Middle class and low income Mainers who need long term care face the prospect of spending down their savings to cover expenses.  Once assets are spent down to a certain level ($104,400 for a married couple and $10,000 for a single person in addition to a home, a car and other “exempt” assets), the person may qualify for MaineCare (Medicaid) coverage of long term care expenses.

Maine rules have become stricter in recent years.  The rules are especially restrictive with respect to an older person’s gifts of money and property to adult children or other family members.  The three year “look-back” period has been lengthened to five years, making it risky for older people to make gifts even for non-MaineCare purposes such as college education or wedding presents.  Nevertheless, opportunities remain for older people, both single and married, to plan for the possibility of long term care expenses with the help of an elder law attorney. 

These opportunities include:

  • Spending down assets to MaineCare levels on needed items such as home improvements or a new vehicle, and prepayment of expenses such as property taxes, insurance, utilities and burial expenses;
  • Transfer of assets from an institutionalized spouse to an at-home spouse to preserve assets against estate recovery;
  • Purchase of income producing property, such as rental property;
  • Compensation to family members for physician-recommended services under a contract prepared by an elder law attorney, to prevent institutionalization;
  • Purchase of an annuity, meeting MaineCare requirements, for the at-home spouse;
  • Transfer of a home to a caregiver child who has lived in the home and provided physician-recommended care for at least two years, enabling the older person to stay out of an institution;
  • Transfer of assets, either outright or in trust, to a disabled or minor child.

None of these steps should be taken without the assistance of an elder law attorney.  Attorney Sally M. Wagley has more than 20 years experience in elder law.  If you or a family member needs long term care services and want to find out how to plan for the best personal and financial outcome, please contact Levey & Wagley for an appointment.

(The information provided on this website is for informational and educational purposes only. This information should not be construed as rendering legal advice or offering an answer to a specific legal problem.)

 

Click on these links for more information:

Long Term Care Planning 2008
Do you need a Living Trust?
Grandparents Raising Grandchildren
Legal Help for Caregivers
Do You Need a Power of Attorney?
What is Probate?
Elder Law Links