Nursing Homes: Estate Planning and Medicaid

How Medicaid Can Assist Your Nursing Home Costs

It is important for families to think in advance on how a nursing home may be paid for. Some families have long term care insurance which will cover costs, but most will look to either personal funds or Medicaid to cover the costs.

Illinois allows for Medicaid to pay for the ward’s care in a nursing home, but Medicaid has the right to place liens on assets or deny Medicaid applications if the ward has too much value in assets. Medicaid eligibility not only impacts the individual receiving benefits, but also their spouse. The State of Illinois considers the assets of both parties when determining eligibility. Medicaid insurance may place limitations on the spouse's assets and the ward's assets.

To prevent Medicaid from restricting or rejecting assistance, a special trust can be set up to help family members. This trust moves assets from the person receiving care to a separate entity." By doing this, the ward is divesting their interests in their property and allowing a trustee to act. The trustee will determine how the assets should be handled.

It is important that the ward voluntarily create an irrevocable trust to avoid probate and Mediaid liens well in advance. The State of Illinois has a five year look back period in which they will investigate transfers of property. If your family member is denied Medicaid, a Medicaid appeal process will occur where paperwork proving eligibility will need to be given to the State of Illinois.

Establishing the ability to gain Medicaid for the ward in advance will not only save money, but add ease to financial concerns well into the future and save money that may be given to heirs in the future.

Not only can we assist you in creating the estate planning tools for your Medicaid application, but we can apply to Medicaid for you and if necessary, participate in a Medicaid appeal.

It is important to remember that nursing homes in Illinois may only cost $8,669 on average for a semi-private room. A private room in a nursing home is an average of $11,863 a month in the Chicago and the surrounding counties of Illinois. By applying to Mediaid for coverage, Medicaid will usually cover 100% of the cost. Being eligible for Medicaid usually saves families $200,000 to $500,000 over the course of the individual needing care’s lifetime.

If you are considering nursing home placement for a loved one and would like to hire a qualified attorney to create the necessary estate planning tools to avoid Medicaid liens, call our firm at (312) 971-2581 or book an appointment online.

Nursing Homes: Ensuring Quality of Life in Illinois

Nursing homes stand as a cornerstone in providing healthcare and personal care for the elderly or those requiring long-term assistance due to disability or incapacity. Nursing home facilities offer 24/7 medical care and support while addressing the physical, social, and psychological needs of the residents that live inside of them.

Choosing a nursing home is not as simple as finding a reputable care facility. It is also about finding tailored care and maintaining a quality of life for the individual who needs the professional care sought. A nursing home may be a chapter of a disabled individual’s life whereby they need to focus on rest, care, and community.

Nursing Home Considerations in Estate Plans

How to Choose the Right Nursing Home

Choosing the right nursing home in Illinois can be a challenge for many individuals. Careful planning and review of the facility must be conducted to ensure that your loved one is properly cared for.

When choosing a nursing home, it is important to weigh several different factors:

Quality of Care: Research the reviews, reputation, and track record of the facilities that you are considering carefully.

Staffing Ratio: By reviewing the staffing ratio, you are looking at whether your loved one is capable of receiving proper care to avoid negligent actions by staff. Often, staff in nursing homes are forced to rush between staff due to shortages that most nursing homes experience. Personalized attention and timely care are important to ensure that medical issues like bed sores that can become infected don’t occur.

Medical Services: Evaluate the medical services provided by the nursing home thoroughly. If your loved one has a certain ailment or medical condition that requires specialized attention, make sure the nursing home has the medial professionals and doctors that regularly review those conditions

Health and Safety Precautions: Checking the health and safety ratings of the nursing home will tell you what issues have occurred in the past and whether the nursing home has been able to fix those issues or if they persist.

Location: Consider whether the nursing home is close to family members, local hospitals, and the environment around the building to ease the potential resident of the home.

A rating system established by the Centers for Medicare and Medicare services gives a rating for nursing homes a five star scale.

Financial Planning for Nursing Home Care

Implementing long term care insurance, Medicaid, reserve finances, and estate planning tools will allow for you to have flexibility in choosing the appropriate nursing home. Often, a retirement plan alone will not cover long term care costs in many situations. Often, an experienced estate planning attorney will assist in finding ways that are most affordable for families.

Finding an insurance company to assist in implementing long term care insurance is often easier than people can imagine and it is a good idea for people to carry this type of insurance in addition to their health insurance and life insurance. if long term care insurance is not an option, there are a large amount of options that are available to people.

If you are considering nursing home care for your loved one, call us at (312) 971-2581 or book an appointment online.

Nursing Homes and Healthcare Power of Attorney

A healthcare power of attorney in Illinois is a legal document that allows an individual to appoint someone to make medical decisions on their behalf if they are incapacitated or unable to care for themselves. The power of attorney, or agent, helps the disabled person when they are sick. The agent acts as an advocate for the disabled individual.

By creating a healthcare power of attorney, it ensures that the values of the individual creating the healthcare power of attorney’s wishes are upheld and the agent acts in their best interests. The designated agent is given a significant responsibility to make the right health care decisions.

The agent must understand the medical options available, the wishes of the person appointing the agent, and they must know when to make educated decisions with the healthcare team that is providing care. The decisions that are made must align with the persons’ values and their best interests.

Financial Power of Attorney: Management of Assets and Financial Affairs

In addition to a healthcare power of attorney, quite often a financial power of attorney is created which designates an agent to handle financial matters on behalf of the individual appointing the financial power of attorney agent. The role of the agent is key to managing assets in case of incapacitation, paying bills, and making financial decisions that align with the long-term care needs of the individual being placed into the nursing home.

The financial power of attorney agent that is appointed has a legal obligation to act in the best interests of the creater of the power of attorney. The financial power of attorney can have duties that include management of daily expenses to management of investment portfolios. This is a considerable undertaking for anyone that is appointed because the cost of nursing homes can be a significant financial burden if not handled correctly.

Having a trusted individual to act on behalf of the individual being placed into nursing home care is essential given the significant financial straint a nursing home can place on an individual. It is important for the agent to navigate the costs of long-term care with a serious and educated approach.

By implementing power of attorney forms into your estate planning, you are appointing an attorney in fact that can exercise the appropriate health care powers, financial powers, and make the necessary decisions for your best interests.

If you would like to draft a healthcare power of attorney or financial power of attorney, contact our office at (312) 971-2581 or book a consultation online. Our office also has a do-it-yourself program that is an option for those who would not like to hire an attorney.

Frequently Asked Questions: Nursing Home Care, Estate Planning, and Medicaid Planning

Does a financial power of attorney have to have a financial background or education?
The agent that is appointed to act as your financial power of attorney does not have to have a background in finance or a specialized education. The individual must act in your best interests and they must not abuse the position that is appointed to them. Just like a healthcare power of attorney, the agent of a financial power of attorney needs to understand the wishes of the person appointing the agent.

Does a healthcare power of attorney have to have a medical background?
An agent who is appointed to act as a healthcare power of attorney must know the wishes of the person appointing the agent. Often, healthcare power of attorney documents include wishes with regard to resuscitation that need to be followed. It would be preferred for a family member who is going to honor the medical power of attorney and has a healthcare background to act, but the person appointing the agent has the right to pick whomever they would like.

How can I make sure that my estate plan accounts for nursing home care appropriately?
The best way to ensure that your estate plan is sufficient for the potential for nursing home care is to talk to a licensed attorney at Chicago Family Attorneys, LLC who can assist you with all aspects of planning.

Not only will our firm assist you, but we will work closely with any financial planners that will need to assist in the appropriate planning.
To speak with a licensed attorney for a free consultation, call Chicago Family Attorneys, LLC at (312) 971-2581 or book a consultation online.
If I don’t have a financial power of attorney or healthcare power of attorney, how can my family members assist me?
If you do not have a financial power of attorney or healthcare power of attorney and you become incapacitated, a guardianship case will need to be filed with the circuit court and the matter will need to go to a hearing.