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Protecting your assets from the expense of long-term care

On Behalf of | Feb 16, 2022 | Firm News

Government-funded health insurance is available for people ages 65 and up with limited income. When you have substantial money saved and invested, you may fear losing it to the cost of health insurance and long-term medical care.

With proper planning, you can save your assets for your family and qualify for your state’s health insurance.

What is the income limit to qualify for senior health insurance?

Each state determines its specific health insurance qualifications. According to the American Council on Aging, most states require individual applicants to make less than 300% of the SSI level per month to qualify. However, when you make more than this amount, it does not mean that you can easily afford the cost of private medical insurance or long-term nursing care.

If your income is higher than the state limit, you could create a Qualified Income Trust. Your paycheck goes directly into the trust, with strict guidelines for distributing payments to you and your spouse. Since the money belongs to the trust, it is not considered personal income.

How can you meet the asset requirements?

Many state insurance programs also limit assets to $2000 per person. Usually, this requirement excludes your primary home. To avoid spending or selling your assets, consider these options.

  • Gift your property to family members
  • Create an irrevocable asset protection trust
  • Prepay burial expenses with a funeral trust
  • Give assets to the spouse not needing insurance

During a financial review of your property, most state insurance processors look back at the last five years. Anything transferred out of your name might still count as an asset during that time.

Planning for long-term care and state-sponsored medical insurance can protect your assets and save you money on medical expenses.


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