All seniors need to think about the possibility that they might have to transition to an elder care facility, such as a nursing home or independent living center. While younger seniors—those age 65 to 75—only have a 50% chance of moving to a nursing home, chances increases significantly as you age. By the time you reach 85 years old you have a 90% chance of having to stay in some kind of elder care facility.
Because the cost of these facilities can easily exceed $50,000-$70,000 per year, it’s important to consider not only how to pay for those expenses but also how to ensure that you preserve as much of your assets as possible to leave as inheritances.
When it comes to protecting your assets there are some steps you can take now that will help you in the future. If you are a senior who is currently managing your own finances you’ll definitely want to create a power of attorney that, when the time is right, will transfer your financial decision-making abilities to someone else. While you may still be capable of managing your own finances, there may come a time when you want someone else to do it for you, and having a power of attorney in place will make this transition seamless.
Additionally, you may want to consider creating a Medicaid plan. By using a Medicaid plan you can allow Medicaid to pay for your nursing home care costs. These plans require significant preparations, so you need to speak to an elder care attorney as soon as possible if you’re thinking of creating a Medicaid plan.