Many people in New Jersey and across the nation take the step of establishing a long-term care plan for how they want to pay for the health care services they or a loved one will need as they age. Some people will want to utilize Medicaid services as a means of affording health care services. It is important to have a basic understanding of what Medicaid is, so you can determine if it is right for you.
When a person in East Hanover is engaged in the estate planning process, they may be thinking not just about how their assets will be passed on to loved ones, but also how they will meet their financial needs as they age. Many seniors anticipate relying on Medicaid or other government benefits to pay for their long-term care needs. However, a person must have limited financial resources to qualify for such benefits.
There are a variety of ways to pay for long-term care. Some people in New Jersey have a long-term care insurance policy. Other people may be eligible for public benefits aside from Medicaid like, for example, Veterans Affairs Aid and Attendance. A person may take out a home equity loan or a reverse mortgage to pay for long-term care. For certain individuals, it may be possible to fully deduct long-term care costs from their federal income taxes. Funds in retirement accounts can also be used to pay for long-term care.
Some people in New Jersey may have given thought to how they will afford the care they may need as they age, and thus have a long-term care insurance policy as part of their estate plan. However, such policies can be expensive, as premiums are constantly increasing. Therefore, it might be worthwhile to consider other alternatives to long-term care insurance.
Most people in New Jersey expect to live long lives. However, many are not prepared legally and financially for their old age. According to one study, this may be especially true for women.
When a person in New Jersey has a loved one with special needs, they will want to make sure their loved one is provided for financially. One way to do this is for the special-needs individual to obtain government benefits. However, usually a person must have limited resources in order to qualify for government benefits. This can become problematic when the person with special needs has other financial resources, but still needs government benefits to meet all of their living expenses and medical expenses.
People in New Jersey who are looking for a nursing home for an aging loved one often do all they can to inspect the home, its policies and its practices, to ensure it is a good fit for their loved one. Once a nursing home is chosen, a nursing home contract will need to be executed. Before signing on the dotted line, it is important to carefully review the nursing home contract, to ensure it is fair and appropriate.
Special needs trusts are one way to provide a disabled person with the income they need to survive, while still retaining their government benefits. However, not everyone in New Jersey has enough money to open a special needs trust. An option that may be available to these people, however, is an ABLE account.
Long-term care planning is important for people in New Jersey to consider while they are still competent enough to do so. For example, they may need to execute legal documents to name who will make decisions on their behalf if they become incapacitated. Also, they will need to decide what kind of elder care they will want as they age, and how they will pay for such care.
Many people in New Jersey, including the elderly and special needs individuals, rely on government benefits to make ends meet financially. However, there is a limit on the monetary amount of assets a person can have in order to qualify for certain government benefits. People may fear that they must impoverish themselves in order to qualify for benefits. However, through the execution of a special needs trust, certain assets will be excluded when a person applies for benefits.