No more alarm clock; no more Monday morning meetings. The average Colorado family looks for to the opportunity to set their own schedule, travel and enjoy their retirement years. These golden years offer the promise of a more relaxed lifestyle; however, they also can prove to be a financial challenge. In fact, many retirees discover that Medicaid planning is an essential component in protecting their estate.
As the Colorado family settles into retirement, decisions regarding how much money should be withdrawn from investment accounts can be crucial. The family wants to enjoy life; however, they also want to ensure that they will have enough funds to last throughout their retirement years. Additionally, the possibility of unexpected medical expenses and long-term care increase as each individual ages.
The need for long-term care does become a reality for many retirees. Unfortunately, this type of care can be extremely expensive. In fact, the cost of nursing home care can exceed $8,000 per month. Long-term care insurance is available; however, it can be costly. Medicaid does pay for nursing home care for those who qualify, but in order to qualify, the individual can only have a minimal amount of assets.
With prior planning, it is possible to structure one’s estate so that a number of assets are preserved without negatively affecting Medicaid eligibility. This will need to be done prior to the need for Medicaid benefits as any transfer of assets within five years of requesting coverage will be reviewed. Experienced legal counsel can assist the Colorado family in structuring their estate in a manner that will benefit their Medicaid planning goals.
Source: fool.com, “4 Retirement Rules to Live By“, Christy Bieber, April 4, 2018