How can I protect my assets from nursing home costs?

Protecting your assets from nursing home costs can be a complicated process. However, Washington State has some legal tools that can help protect assets. One tool is to create a long-term care trust. This is a trust that holds assets such as real estate, stocks, or other investments, and allows you to transfer assets from yourself or your spouse to another legal entity to help reduce Medicaid liability. The money in the trust cannot be used to pay for long-term care until it is determined that you need such care and that Medicaid must be used to pay for it. Another tool is a charitable annuity. This is a contract between you and a qualified charity where you give the charity a lump sum of money in exchange for a fixed income over a specified period of time. This income is not counted as part of your assets and is not subject to Medicaid eligibility rules. Finally, if you are over the age of 65, you may be able to use a reverse mortgage to help pay for long-term care. With a reverse mortgage, the homeowner obtains a loan from a bank that is secured by the equity in their home. The homeowner then receives regular payments from the bank, which often go directly to the long-term care provider. Using these tools can help protect your assets from being eaten up by nursing home costs. However, it is important to remember that each situation is unique, and you should seek the advice of a licensed elder law attorney before making any decisions.

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How can I protect my assets from nursing home costs?

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