There are various reasons why people work hard, invest and save money. However, most will say they want enough money to enjoy a comfortable retirement and leave an inheritance to their children when they die.
A stay at a long-term care facility can significantly deplete their assets, often leaving little behind for future generations.
Paying for nursing homes in Nevada
The average monthly cost for nursing care in Nevada is $11,545 for a shared room and $13,174 for a private room. To pay for skilled care, the individual often relies on their savings. Some people have long-term care insurance, which may cover most or all of their costs.
For those who qualify, Nevada Medicaid can pay for their nursing home stay. The applicant has an income limit of $2,901/month to be eligible. Of that amount, they can keep $154 for personal needs. The rest goes to the nursing home.
In addition to the income limit, the individual is limited to $2,000 in assets, which includes:
- Bank accounts
- Retirement accounts
- Stocks, bonds and certificates of deposits
- Cash and any assets that can easily be converted to cash
The applicant’s home may be exempt if the home’s equity minus any outstanding mortgages is less than $730,000, the spouse, a minor, blind or disabled child lives there or the applicant plans to return.
To protect your assets and qualify for Medicaid, you can transfer them into a Medicaid Asset Protection Trust (MAPT). Once the trust is set up, these assets are no longer counted in determining if you qualify for Medicaid benefits. This allows you to retain more of your wealth to pass on to your loved ones.
Nevada is favorable toward asset protection trusts, but they do have a five-year look-back period. Any assets transferred to the trust within five years of applying for Medicaid could disqualify you from receiving benefits, or you may face a penalty period of ineligibility.
Establishing an asset protection trust must be done correctly and proactively. You will want to discuss your goals with a legal representative with the expertise to create a plan tailored to your needs.
