long term-care for florida residents
TRANSCRIPT
Long-term Care for
Florida Residents
William “Tom” Edwards Orange Park FL Estate Planning Attorney
The Edwards Law Firm
165 Wells Road, Suite 402 Orange Park, FL 32073
(904) 215-3550
http://www.edwardslawfirm.com
2 Copyright 2013 www.edwardslawfirm.com
Will I Need Long Term Care?
Surprisingly nearly 70% of us will need some form of long term care
in our lives, and it is not always a frail person in a wheelchair residing
in a nursing home. You may have already received some form of long
term care without
realizing it. Remember
when you were
recovering from a major
surgery and family
members came by with
meals and walked the dog
when your spouse was at
work? You were receiving help
with two instrumental activities
of daily living.
The Purpose of Long Term
Care
Long term care is primarily
concerned with assisting in
activities of daily living:
bathing, dressing, eating,
moving from place to place
and using the bathroom. It is
not health care because services are not geared to improving your
health as much as allowing you to live normally. Because of this,
Medicare and any private health insurers do not cover long term care
with very few exceptions.
As we noted earlier, many services can be provided in your home by
family or friends on an unpaid basis. Housekeepers and home health
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the Stage for Medicaid Eligibility” and
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You’ll discover:
How to avoid draining your estate
to pay for long-term health care
The importance of having a
disability plan
How to make sure your wishes are
carried out should you become
disabled or incapacitated.
Long term care is not health care
because it is not geared towards
improving your health as much
as allowing you to live normally.
The Edwards Law Firm Estate Planning for All Generations 3
aides provide similar services on a paid basis. Current costs in Florida
average $17 to $18 per hour for these services. Many individuals also
benefit from adult day services which average $60 per day. Generally
meals and activities such as exercise and educational classes are
included as part of the costs at most centers. Additional benefits are
providing a daily routine and social interaction with staff and
fellow clients at the center. Many centers will include access to
limited medical services including physical therapy.
Residential Care
About one in three people over age 65 will require residential
care during their lifetimes. Assisted living facilities allow
individuals to live in their own apartments while having access
to a variety of care options. Many are set up as residential
communities where you can stay with your family members, and not
all residents necessarily require care. People set up residence in
anticipation of future care needs and are seamlessly transitioned into
higher levels of care when it is required.
Nursing homes are for patients who require 24 hour care, and they
have trained nurses on staff. Generally patients will have private or
semi-private accommodations, with costs in Florida ranging
from $230 for semi private rooms per day and $259 for a
private room. These options are somewhat more than the
average $3234 per month for assisted living care.
Paying for Care
Many insurers currently offer long term care insurance and
more and more people are purchasing policies. There may be
restrictions on what facilities are covered and policy limits on the cost
of service may be lower than the actual cost. As with any contract,
attorney review should be considered before you write the first check.
Everyone should take into
account that at some point
residency in a nursing home or
an assisted living facility may be
needed. About one in three
people over age 65 will require
residential care during their
lifetimes.
The substantial cost of nursing
home care for an incapacitated
person can wipe away a family's
nest egg and the inheritance
planned for surviving family
members.
4 Copyright 2013 www.edwardslawfirm.com
Another possible sticking point is the relatively high premiums that
older clients will pay, based on their greater risk.
Other options include reverse mortgages, annuities and trusts. In
limited cases life insurance can pay for your costs. Reverse mortgages
can provide income for those over 62 who are mortgaging their
primary residence. You remain responsible for taxes, insurance and
general upkeep of your property and do not have to repay the loan as
long as you remain in the home. The catch is that when you die, your
heirs will have to repay the mortgage to retain the home. However,
they will enjoy any remaining proceeds when the sale price exceeds
the outstanding loan.
An estate planning attorney should be consulted with regard to any
annuity or trust agreement. Importantly, either option may not
provide sufficient funding to pay for your care and may have negative
tax implications.
Life insurance options are also very limited. You can use an
accelerated death benefit to pay costs, the caveat being that you are
terminally ill, have a life threatening prognosis, need long term care
for an extended period or are permanently confined to a nursing
home and unable to perform activities of daily living. In other limited
cases, you may be able to sell your policy to access funding. Any
option accessing life insurance will diminish any proceeds available to
your family at your death.
Medicaid
Medicaid is the largest single payer of long term care. This federally
funded and state operated program is designed for lower income, low
asset individuals. Each state is free to establish their own guidelines
for eligibility and they are free to determine the range of covered
services. Each state also establishes the income and asset guidelines.
The Edwards Law Firm Estate Planning for All Generations 5
Income levels are based on federal property level. The latest numbers
available list poverty level at $930.83 for an individual and 1260.83 for
a family of two each month. This is not much money, but those
with higher incomes can qualify if they are spending a portion
of the monthly income for health care.
Assets are generally limited to your home, car, personal
possessions and a small amount of available cash. The
Medicaid qualification process can be involved, and it rivals the
tax code in its complexity.
In conclusion, long term care may be necessary, more so
for the aged women who will usually outlive their
spouses, any person who lives alone and those who
already have chronic health issues. There are options for
care and more importantly how to pay for your care when you need
it.
It is possible to adjust your
assets in order to obtain
Medicaid eligibility. Those that
believe you can simply sell or
gift their assets to others in
order to qualify for Medicaid
may be in for an unpleasant
surprise. You should seek the
services of an experienced
estate, trust, or elder care
attorney before you start to
transfer property.
6 Copyright 2013 www.edwardslawfirm.com
Resources
http://longtermcare.gov/
http://www.medicare.gov/
2012 MetLife Market Survey of Long-Term Care Costs
https://www.metlife.com/mmi/research/2012-market-survey-long-
term-care-costs.html#keyfindings
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…and many more!
William Tom Edwards has been
assisting individuals, businesses
and organizations with their legal
management and legal service
needs for over 25 years. His
practice is primarily devoted to
estate planning, trust
administration, Medicaid
planning, asset protection,
guardianship and probate.
The Edwards Law Firm “Estate Planning for All
Generations”
ORANGE PARK
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