Addressing Health Care Cost At The Root

When you are planning for the future there are inherent challenges involved because crystal balls are hard to come by and the only thing you can count on besides death and taxes is change. Elder law attorneys will always advise their clients to start planning for the latter stages of their lives as soon as possible, and the logic behind this is self-evident. At the same time the further into the future you try to look the harder it becomes to see a clear picture. All anyone can do is keep themselves apprised of the facts, make intelligent projections, and do their best to be prepared for any eventuality.

These unknowns fall into two different categories: those that are within your control and those that are not. On this day nobody knows exactly what the health care system is going to look like in five years let alone 15 or 20 years. The value of your house may not be what you thought it would be 20 years ago, and your investment portfolio may have looked a lot different before the financial markets took a nosedive a couple of years ago.

You also have no personal control over the rising cost of health care. It is estimated that the average American will spend somewhere in the vicinity of $200,000 on medical related expenses after the age of 65. This number increases to upwards of a half-million dollars if you include long-term care expenses. Depending on your resources these are some pretty significant expenses that could have a profound impact on your legacy.

The good news is that these average expenses are just that, average; not everyone incurs them. One of the things that is within your control is the way that you take care of yourself. Preventable diseases caused by poor diet and lack of exercise account for hundreds of thousands of deaths each year. Many medical conditions can be controlled or eliminated through healthy lifestyle choices. If you’re concerned about the rising cost of health care it may be a good idea to evaluate your lifestyle and ask yourself if you’re inviting health or inviting illness as you enter into the latter stages of your life.

Another thing that is completely within your control is your ability to plan your estate. That planning may involve the use of irrevocable trusts in order to protect your assets from Medicaid availability. Medicaid penalizes transfers made into a trust like this within five years from the date of Medicaid application. So, if your desire is to protect assets from long term care costs in this manner, the sooner that such a trust is created, the sooner the assets will actually be protected. Another planning option is the creation of a revocable trust with Medicaid triggers. Such a trust will not protect your assets from the outset or start the Medicaid 5 year penalty clock running, but it will place your assets totally within your control of the control of the people you designate, and will give them the ability to protect your assets from Medicaid through such planning later, if that became necessary, even during your incapacity.

Addressing Health Care Costs at the Root

Another thing that is completely within your control is your ability to plan your estate. That planning may involve the use of irrevocable trusts in order to protect your assets from Medicaid availability. Medicaid penalizes transfers made into a trust like this within five years from the date of Medicaid application.

So, if your desire is to protect assets from long term care costs in this manner, the sooner that such a trust is created, the sooner the assets will actually be protected. Another planning option is the creation of a revocable trust with Medicaid triggers.

Such a trust will not protect your assets from the outset or start the Medicaid 5 year penalty clock running, but it will place your assets totally within your control of the control of the people you designate, and will give them the ability to protect your assets from Medicaid through such planning later, if that became necessary, even during your incapacity.

To learn more about Addressing health care costs and protect you from the cost of long term care, please visit the website of the experienced estate planning attorneys Mississippi of the Morton Law Firm PLLC today.

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