Protection for Seniors & Retirees

How Will You Pay For A Nursing Home?

The cost of staying in a nursing home has been rising rapidly. In most states, the cost of a nursing home is more than $200 per day – that translates into at least $73,000 per year. More and more, people are relying on Medicaid to cover the expense of nursing home care for themselves or their spouse.

Recent changes in the law have made it more difficult to qualify for Medicaid. Medicaid is for people with low incomes and few resources. If you have more than the amount Medicaid allows, you will be required to spend down your assets.

Careful planning can preserve some assets, so you have something to pass on to your children and grandchildren. But, Medicaid eligibility rules are complicated, and the consequences for not following the rules are severe. We can help you plan to preserve your assets and then, when the time comes, navigate the Medicaid application process.

What Will Happen To Your Retirement Account?

Individual retirement accounts, in the form of 401(k), 403(b), 457 and IRA accounts, are increasingly being used to save for retirement. Their selling point is the considerable tax advantages they offer. But have you considered what will happen to your retirement account when you die?

You have probably named a death beneficiary for your retirement account. This method of passing on your wealth has consequences:

• Your beneficiary can decide to cash in the account, incurring substantial and almost immediate tax liability and losing out on the opportunity for tax-deferred growth
• Your beneficiary could lose the account to divorce or creditors

For some retirement accounts, it doesn't have to be this way. Just like with your other assets, you can control the distribution of the retirement account to maximize protection for your beneficiaries. Don't let your life savings be wasted on unnecessary taxes or lost to divorce or creditors.

One Final Note

You have finished reading about some of the risks faced by seniors and retirees. You shouldn't stop with this page, though. The other Planning and Protection pages describe risks that you, or someone you know, may also face. In particular, the Planning and Protection page For Couples and Individuals should be read by everyone.