As life expectancy increases, more Michigan residents face the challenge of managing long-term care costs. The expense of nursing homes, assisted living facilities, and in-home care can quickly deplete savings, leaving families financially strained. Estate planning is essential to safeguarding your assets while ensuring quality care for yourself or your loved ones.
Here, our Plymouth estate planning attorneys at Steslicki & Ghannam provide actionable tips to help you manage long-term care costs and avoid financial hardship in Michigan.
Understand the Cost of Long-Term Care in Michigan
Michigan’s long-term care costs vary depending on the type of care and location. On average, nursing home care in Michigan costs over $9,000 per month, while assisted living averages around $4,500 monthly. In-home care can be equally costly when factoring in medical and non-medical services.
These expenses can quickly exhaust savings without proper planning, making early preparation critical, including:
- Leverage Medicaid Planning
Medicaid is a federal and state program that can help cover long-term care costs for eligible individuals. However, qualifying for Medicaid in Michigan requires meeting strict income and asset limits. Strategic Medicaid planning with our experienced estate planning attorney can help you protect your assets while meeting eligibility requirements. Tools like irrevocable Medicaid trusts can shield certain assets from being counted during application.
- Establish a Long-Term Care Plan
Incorporating long-term care planning into your estate plan ensures you’re prepared for potential care needs.
This plan might include:
- Advance Directives: Legal documents, such as a durable power of attorney and healthcare proxy, empower trusted individuals to make financial and medical decisions on your behalf.
- Living Wills: Specify your preferences for medical treatment, including life-sustaining measures.
These tools provide clarity and reduce stress for your family during challenging times.
- Use Trusts to Protect Assets
Trusts are powerful tools for asset protection and long-term care planning. An irrevocable trust can safeguard assets, such as your home, from being used to pay for care. Placing assets into an irrevocable trust removes them from your ownership—while still maintaining control—ensuring they are not eligible for Medicaid. However, Michigan’s Medicaid program enforces a five-year look-back period, so planning early is essential.
- Consider Long-Term Care Insurance
Long-term care insurance can offset care expenses and preserve your estate. Policies vary in coverage and cost, so assessing your needs and financial situation before purchasing is vital. Premiums are typically lower when you buy insurance at a younger age, so early action is key.
- Plan for Spousal Protections
Married couples face unique challenges when one spouse requires long-term care. Michigan’s Medicaid laws include spousal impoverishment protections, allowing the healthy spouse to retain certain assets and income. Our Michigan estate planning attorney can help structure your finances to maximize these protections and meet both spouses’ needs.
- Reassess and Update Your Estate Plan
Life changes like health status, family dynamics, and financial circumstances can impact your estate plan. Regularly reviewing and updating your plan ensures it aligns with your current goals and Michigan’s laws.
Contact Our Skilled Estate Planning Attorneys in Plymouth, Michigan For Help
Managing long-term care costs requires proactive and informed estate planning. By understanding your options and working with experienced attorneys like ours at Steslicki & Ghannam, PLC, you can protect your assets, secure your family’s financial future, and ensure access to quality care. Contact our dedicated Plymouth estate planning lawyers today to learn how we can help you navigate the complexities of long-term care planning and avoid financial hardship.
