Long‑Term Care, Medicaid & Asset Preservation: Planning Before You Need It
When most people think of estate planning, they picture wills, trusts, and passing assets to loved ones.
When most people think of estate planning, they picture wills, trusts, and passing assets to loved ones. But there’s another side of planning that’s just as important—protecting what you’ve worked for while you’re still here. That’s where long‑term care planning, Medicaid strategies, and asset preservation come in.
With healthcare costs on the rise, the average cost of a nursing home can exceed $100,000 per year. Without a plan, a long‑term illness or injury could drain your savings faster than you think, leaving little to pass on to your family.
Why This Matters Now, Not Later
Long‑term care isn’t just for “old age.” Accidents, chronic illness, or unexpected health declines can happen at any stage of life. The challenge is that Medicaid—often a last resort to cover these expenses—has strict income and asset limits. Without proper planning, you may have to spend down most of what you own before qualifying.
By acting early, you can set up strategies that protect your assets and still make you eligible for Medicaid when the time comes.
Key Planning Tools
- Medicaid Asset Protection Trusts (MAPTs)
These irrevocable trusts allow you to transfer assets out of your name while still benefiting from them indirectly. The key is timing—Medicaid has a “look‑back period” (often 5 years), so the earlier you set this up, the better. - Long‑Term Care Insurance
A policy can help cover the cost of nursing home care, assisted living, or in‑home support—keeping your savings intact. Hybrid policies even combine life insurance with long‑term care benefits. - Gifting Strategies
Strategic, gradual gifting to family members can reduce your countable assets over time, but must be done carefully to avoid penalties during Medicaid’s look‑back period. - Personal Care Agreements
If a family member will be your caregiver, a written agreement can compensate them fairly, reduce taxable estate value, and comply with Medicaid rules.
Balancing Care & Legacy
The goal isn’t to “hide” assets—it’s to create a lawful, thoughtful plan that allows you to get the care you need while protecting your financial legacy. Without planning, the choices become limited, stressful, and often far more expensive.
Final Thought: Waiting until a crisis hits limits your options. The best time to plan for long‑term care and asset preservation is when you’re healthy and in control. At Mason Firm, LLC, we help you design a plan that protects your wealth, ensures your care, and keeps your family from facing difficult choices alone.
Future‑Proof Your Family now—schedule your Life & Legacy Planning Initial Consult today.
