People are living longer. Health care costs are going up. Insurance costs are going up. Assisted care or nursing facilities can cost upwards of $6,000 per month. Except for the fortunate who are either very wealthy or very healthy, or both, many people, as they get older, need to deal with the sobering prospect that they may run out of money.
Careful planning can help to mitigate the consequences of such a financial crisis. A knowledgeable attorney can help put into action an estate planning technique which may allow a greater preservation of estate assets while allowing one to financially qualify for government assistance.
Arizona Long Term Care System (“ALTCS”) provides assistance to elderly who are financially strapped. Generally, to qualify for benefits, a person must be at least 65 years of age and require assistance with the activities of daily living. Also, a person may not have monthly income of greater than $2,094 or more than $2,000 in “countable resources”.
Strategies utilizing trusts, gifting of assets and spend-down techniques may allow one to preserve assets for loved ones while qualifying them for ALTCS benefits. Most of these strategies need to be implemented more than 5 years before one applies for ALTCS benefits. Thus, the time to prepare is now, before a crisis occurs and a need arises.
If you have questions or would like assistance in developing an estate plan that will assist you or your loved one with qualifying for ALTCS, while possibly preserving estate assets, please contact Titus Brueckner & Levine PLC at 480-483-9600.