• 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
    • Speaker Connection
  • Services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate Planning Services
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Wills & Trusts
  • Elder Law
    • Coping with Alzheimer’s
    • Guardianship and Conservatorship
    • Medicaid Crisis Planning
    • Medicaid Planning
  • Seminars
  • Webinars
  • Resources
    • Communities We Serve
      • Keller, Texas
    • Elder Law Resources
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
    • Estate Planning Resources
      • 3 Reasons to Create a Trust
      • Estate and Gift Tax Figures
      • Estate Planning Articles
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Estate Planning Worksheet
      • Is Your Estate Plan Outdated?
    • Free Consultation
    • Free Estate Planning Seminars
    • Frequently Asked Questions
      • Estate Planning
      • Trust Administration & Probate
    • Newsletters
    • Our Client Care Program
    • Pre Consultation Form
    • Professional Resources
      • Educational Alerts
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog

McGee Law Firm

Your Resource for Estate Planning, Elder Law and Medicaid / VA Planning

Call Us Today 817-899-3286
  • Facebook
  • Instagram
  • LinkedIn
  • YouTube
Attend a Free Seminar
Home / Long-term care / Preserving Your Independence

Preserving Your Independence

July 1, 2021 by Brandon McGee

Compliments of the McGee Law Firm, Attorney Brandon McGee

As we get older, it often seems that time accelerates. It seems the children were in diapers just yesterday. But, now they’ve left home and they have kids of their own. Where does the time go? 

Aging is a normal part of life. The infant becomes a toddler. Later the teenager becomes an adult (thankfully). Unfortunately, as we age later in life, we are no longer as able-bodied as when we were teenagers. Gradually, we all get more aches and pains. But, what would happen if something serious were to occur? Let’s take a look at Betty’s situation. 

Betty is 66 and has worked hard all her life. Betty and her husband, George, retired a few years ago. George died after only a year in retirement. Betty and George had a wonderful life together and raised two children, Alice and Mark. Not a day goes by that Betty does not miss George terribly. However, she has decided to live life fully and has had an active, fulfilling life. She travels and she spends a lot of time with friends and family—especially her adorable grandchildren. She was visiting Alice and the grandchildren in the Northeast when she had difficulty walking and talking. She was having a stroke. She was rushed to the hospital. After a week in the hospital, her condition stabilized, and the doctors sent her to a nursing home for recuperation, which they expected to take three years.

Not only does Betty have a lot of hard work ahead of her, but much of her life savings will be wiped out by the nursing home bills. Betty thought she had it covered with Medicare. But Medicare only covers the first 100 days of a nursing home stay. And there is a big daily co-payment after the first twenty days. After 100 days, she has to pay it all. Betty wants to be close to Alice and the grandkids during her recuperation. Unfortunately, the average nursing home in that area costs well over $8,000 per month. The total stay will be over $280,000, even after Medicare pays its portion. Over a quarter of a million dollars! This will wipe out most of Betty’s lifetime of savings and cause her to become financially dependent on her children. Instead of being able to help with her grandchildren’s future, she’ll be a financial burden on her children.

There must be a better way! Well, there is. Betty could have planned ahead by gifting her money into a Medicaid Income Only Trust. The income of the trust would have been available to Betty, but the assets themselves would not be considered available to pay the nursing home expenses and would not have to be used up. As a result, Betty would have qualified for Medicaid. While she needed the nursing home assistance, the income she received from the trust would go toward her “share of cost” for the nursing home. But, the principal of the trust would remain intact and could go to Betty’s children or grandchildren at her death. Unfortunately, this strategy does not work if you wait until the last minute. Medicaid has a five-year look-back for gifting. Any gifts made within that five-year period are totaled and divided by the average monthly nursing home cost to determine the “penalty period.” Betty would be ineligible for Medicaid during the penalty period. 

If Betty had planned ahead, she could have preserved her independence, avoided being a financial burden on her children, and helped with her grandchildren’s future. And, she would have had the exact same care!  Avoid Betty’s fate. Eat healthily and exercise, but also plan to protect your independence and your family’s future. The McGee Law Firm can help you plan to preserve your financial independence.

Compliments of the McGee Law Firm, Attorney Brandon McGee an established member of the prestigious American Academy of Estate Planning Attorneys, as well as the National Academy of Elder Law Attorneys 


Written By: The American Academy of Estate Planning Attorneys

  • Author
  • Recent Posts
Brandon McGee
Brandon McGee
Brandon McGee enjoys a successful law practice focusing on estate planning, elder law, Medicaid preplanning and crisis planning, and probate. Brandon and his team combine legal skills with compassion and understanding to develop estate plans that are personalized to the needs of each of their clients.
Brandon McGee
Latest posts by Brandon McGee (see all)
  • Planning for the Unthinkable - March 30, 2023
  • Leaving a Legacy - March 29, 2023
  • The Not-So Transparent Corporate Transparency Act - March 28, 2023

Filed Under: Long-term care, Nursing Home, Retirement planning

About Brandon McGee

Brandon McGee enjoys a successful law practice focusing on estate planning, elder law, Medicaid preplanning and crisis planning, and probate. Brandon and his team combine legal skills with compassion and understanding to develop estate plans that are personalized to the needs of each of their clients.

Primary Sidebar

Blog Subscription

Sign up for our estate planning blog to receive all of our latest news and updates!

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

Follow us

  • Facebook
  • Instagram
  • LinkedIn
  • YouTube

TESTIMONIALS

Client Review
May 25, 2021
    

Brandon McGee is knowledgeable, experienced and professional regarding Estate Planning. The entire process of multiple meetings to establish our input, draft and sign documents and fund the Trust were well organized and clearly explained. At completion, we were presented with a very well organized binder with the documents (both paper and electronic) and lists for future action.  In short, we find Brandon McGee and his staff to be competent, professional and friendly. ~ Brian C.

default image
Brian C.

Fort Worth Address

Fort Worth
810 W. 10th Street
Fort Worth, TX 76102
United States (US)
Phone: (817) 899-3286
See Larger mapGet Directions

Fort Worth Map

map

Southlake Address

Southlake
101 River Oaks Dr., Ste. 110
Southlake, Texas 76092
United States (US)
Phone: (817) 899-3286
See Larger mapGet Directions

Footer

  • Advantages of Working With our Firm
  • About the American Academy
  • Disclaimer
  • Sitemap
  • Contact Us

Connect to Us

  • Facebook
  • Instagram
  • LinkedIn
  • YouTube
footer logo

© 2023 McGee Law Firm
All Rights Reserved