May is National Elder Law Month, and TuckerAllen estate planning attorney Jim Gau recently appeared on KSDK’s Show Me St. Louis to discuss long-term care planning.
Mr. Gau explains that about a third of people stay in a nursing home for about 1-3 years and nearly a quarter stay for more than three years. The average cost in St. Louis ranges from $130 a day to $380 a day totaling up to about $70,000 a year.
Mr. Gau goes on to explain that the first way to pay for all of this is just to simply pay out of pocket. With the cost being that high, it is not a possibility for everyone though. Long-term care insurance is an option, but you do need to think about it in advance. Jim says there are three things to look at when considering long-term care insurance:
- Elimination period, or the deductible
- Daily benefit
- Maximum that you will pay
In order to pre-plan, you can go and see an elder law licensed attorney and talk about things like irrevocable asset protection trusts. Those matters need to be discussed and established long before the need for care arises. If your kids are helping, you can even do what is called a personal care contract or personal service contract that pays them for what they are already doing.