On October 20, 2014, the popular personal finance website, Investopedia.com, published a very informative article on the Top 5 Strategies to Pay for Elder Care. The article is written by veteran reporter, Greg Daugherty.
The article points out that long-term custodial care can quickly wipe out a person’s life savings, and that Medicaid provides a possible solution for this problem.
The article goes on to discuss legal strategies that can help older people qualify for Medicaid without impoverishing themselves or their spouse.
Mr. Daugherty provides an excellent review of asset protection trusts, the use of private annuities or promissory notes to protect assets, pooled income trusts, personal care agreements, and spousal transfers and spousal refusal.
The article relies in part on information provided by Lamson and Cutner attorney, David Cutner, and it quotes him on several points. For example, Mr. Cutner notes that If a person needs to apply for Medicaid before the five-year look-back period is up, it still may be possible to preserve a significant portion of his or her assets using a properly drafted private annuity or promissory note that complies with federal law.
Those who are or will be concerned about the costs of their health care may benefit from reading this article.