• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • Communities We Serve
      • Cook County
        • Barrington
        • Glenview
        • Northbrook
        • Skokie
      • Lake County
        • Gurnee
        • Lincolnshire
        • Riverwoods
        • Vernon Hills
        • Waukegan
  • Services
    • Asset Protection & Business Planning
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Resources
    • Client Resources
      • Free Seminars
      • Estate and Gift Tax Figures
      • Free Estate Planning Worksheet
      • Is Your Estate Plan Outdated?
      • Probate Resources
        • Glenview Probate
        • Lake Forest Probate
        • Lincolnshire Probate
        • Northbrook Probate
        • Vernon Hills Probate
        • Waukegan Probate
    • Frequently Asked Questions
      • Asset Protection
      • Business Succession Planning
      • Estate Planning
      • Families Without an Estate Plan
      • Financial Planning Assistance
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Probate
      • Trust Administration & Probate
      • Trusts
    • Legacy Wealth Planning
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • BLOG
  • Contact Us
  • Review Us

Hedeker Law

Illinois Estate Planning Attorneys

Connect with us today(847) 913-5415

Attend a Free Seminar
Home / General / Are You Prepared for Nursing Home Costs?

Are You Prepared for Nursing Home Costs?

March 9, 2017General

Nursing home costsLike most people, you may prefer not to think about the likelihood of needing nursing home care for you, or a spouse, at some point down the road. The reality, however, is that the longer you live the higher the odds are that you will eventually require nursing home care. If the time comes that you (or a spouse) do need the type of care only found in a nursing home, are you prepared for nursing home costs? Because if you fail to plan ahead, it could put your nest egg at risk if you end up turning to Medicaid for help covering those costs. The best way to avoid finding yourself in that position is to include Medicaid planning in your estate plan well ahead of time.

Facing Reality – Will Nursing Home Care Be Necessary?

We all hope that we will be able to remain in our own homes throughout our “Golden Years” and spend our last days in our own bed. For some people, that is exactly what happens. For many, however, physical and/or mental deterioration eventually leads to the need for long-term care (LTC). When you enter your retirement years you are facing a 50 percent chance that LTC will become necessary. By age 85, those odds increase to a 75 percent chance. If you are married, your spouse has the same odds as you do, making it even more likely that one of you will be faced with nursing home costs at some point down the road.

Can You Afford Nursing Home Costs?

Most people assume that nursing home costs are high, but they don’t realize how high. For 2016, the average cost of a month stay in a LTC facility nationwide was about $6,500. With an average length of stay of 2.5 years, that puts the average LTC bill at almost $200,000. Figures for the State of Illinois are, on average, just below the national average; however, if you are in a metropolitan area you can expect the cost to be higher. Moreover, nursing home costs are expected to continue to rise for the foreseeable future. In 20 years, you can expect to pay about $11,000 per month in Illinois for nursing home care, putting the bill for an average stay at well over $300,000.

How Will You Pay for Nursing Home Care?

Not only is nursing home care costly, but neither your basic health care coverage nor Medicare will likely cover it. Most health insurance plans exclude costs associated with LTC unless you purchased a separate LTC plan at an additional cost. Medicare only covers LTC expenses under very specific circumstances and, even then, will only pay for a short stay in a LTC facility. Unless you can afford to pay for LTC put of pocket, that leaves Medicaid as your only option for help covering your LTC expenses.

Medicaid Will Cover Nursing Home Costs, but…

The good news is that Medicaid does cover costs associated with LTC. The bad news is that if you failed to plan ahead for the possibility of needing to qualify for Medicaid, your assets could be at risk. Medicaid has both an income and an asset limit that applicants cannot exceed. The asset, or “countable resources” limit is often as low as $2,000. Although assets such as your home and a vehicle are exempt, there is a good chance your assets will exceed the limit. If they do, Medicaid will impose a waiting period during which time you will be expected to “spend-down” those assets until their value drops below the program limit. The end result is that you will have to liquidate assets to pay for your LTC expenses until you meet the eligibility requirements for Medicaid. The way to avoid this unwanted outcome is to incorporate Medicaid planning strategies into your estate plan now so that if you do need to qualify for Medicaid down the road your assets will be protected and you will meet the eligibility guidelines without having to ensure a waiting period.

Contact Us

If you have additional questions or concerns regarding nursing home costs or Medicaid planning, contact the experienced Illinois Medicaid planning attorneys at Hedeker Law, Ltd. by calling (847) 913-5415 to schedule an appointment.

  • Author
  • Recent Posts
Dean R. Hedeker
Dean R. Hedeker
Dean Hedeker is a leading Chicago-area authority on estate and tax planning, business law and investments. A long-time resident of north suburban Lincolnshire, Dean has more than 35-years experience helping business owners and families grow, protect and pass on their hard-earned money through tax planning, estate planning and investment management services.
Dean R. Hedeker
Latest posts by Dean R. Hedeker (see all)
  • How Can I Terminate a Living Trust? - September 24, 2019
  • Is an AB Trust Right for My Estate Plan? - September 12, 2019
  • How Can I Include Philanthropy in My Estate Plan? - September 4, 2019

Other Articles You May Find Useful

Lincolnville inheritance planning attorney
Lincolnshire Inheritance Planning — Keeping the State Out of Your Estate
Asset protection trusts
Asset Protection Trusts — Can They Protect My Assets If My Spouse Remarries after I Die?
Vernon Hills estate planning lawyers
Vernon Hills Estate Planning Lawyers Explain 10 Steps to Creating an Estate Plan
trust administration
Trust Administration Questions to Ask Yourself When Appointing a Trustee
Lincolnville asset protection trusts
Lincolnshire Asset Protection Trusts – Are Your Assets Safe?
estate planning attorneys
Estate Planning Attorneys Explain the 5 Most Important Estate Planning Components

Primary Sidebar

FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • twitter
  • link
  • youtube

Testimonials

Client Review
September 8, 2020
    

Dean's knowledge is very comprehensive and current. He not only sees and understands the particular question but he puts it in the context my particular matter and to the overall business and tax environment. Dean has been my attorney for many (over 20) years. I am also an attorney but I would never make a tax, business or financial decision without his extraordinary advice and counsel.

default image
Raymond

Where We Are

LINCOLNSHIRE
1 Overlook Point, Suite 610,
Lincolnshire, IL 60069
Phone: (847) 913-5415

See Larger Map Get Directions

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Office Hours

Monday8:00 AM - 5:00 PM
Tuesday8:00 AM - 5:00 PM
Wednesday8:00 AM - 5:00 PM
Thursday8:00 AM - 5:00 PM
Friday8:00 AM - 5:00 PM

Map

hedeker_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Privacy Policy
  • Disclaimer
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • twitter
  • link
  • youtube
footer-logo

Hedeker Law Ltd.
All Right Reseved.

Attorney Advertisement

© 2023 American Academy of Estate Planning Attorneys, Inc.