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Five Strategies to Pay for Eldercare

May 28, 2021

Most people will require eldercare at some point in their life, but unfortunately, Medicare doesn’t cover the cost of this long-term care. If you think you might eventually reach an age where living on your own will become challenging, if not impossible, then planning for eldercare in your golden years is pivotal to preserving your wealth. Without a plan in place, you might find yourself leaning on family members or depleting your savings. Working with an experienced Springfield long-term care attorney can help you develop an elder care plan that works with your retirement goals.

Below, we review some approaches for ensuring your eldercare costs are covered.

Long-Term Care Insurance

Private long-term care insurance is one way you can ensure that your costs are covered should you need substantial long-term care. These plans generally offer flexibility and a slew of options for those who want to elect certain elements of their care over others. The average annual premium for a couple is about $3,000 per year, making it relatively affordable and easy for anyone to access.


Lower-income Americans will be able to access Medicaid, which will generally cover nursing home care and other long-term care services. Only those individuals and couples who can demonstrate extremely low income will be able to access this benefit. While some folks will do what’s widely known as ‘spending down’ in order to reach a certain asset and income threshold, this is usually a less-than-desirable solution in a dire situation

Asset Protection Trusts

Working with a Springfield long-term care attorney means you can access creative solutions to protect and preserve your wealth. One such instrument is an irrevocable trust, which will allow you to shelter your assets so that you remain eligible for Medicaid and can keep the costs of your long-term care low. This type of trust places your assets entirely in the care of an assigned beneficiary, which in turn gives the appearance that your total wealth is far lower than it might actually be.

Gifting Assets 

If you’re unsure about moving forward with an irrevocable trust, you can decide to simply gift your assets to a family member or loved one before you hit your elderly years could be another way to spend down for Medicaid. However, doing so could leave you in a position where you’ve lost all of your assets due to the beneficiary’s mismanagement – if you’re concerned that the money won’t be spent wisely or that you won’t be able to access it later on, then consider working with your lawyer to file an irrevocable trust instead.

Work with your Springfield Long-Term Care Attorney to Set Up an Annuity

You might be able to both preserve your assets and access Medicaid benefits by using a properly drafted annuity that complies with both state and federal law. This somewhat complicated legal maneuver will require the experience of a skilled Springfield long-term care attorney. If you’re weighing your options around long-term elder care, get in touch with us today.