“ I won’t ever need long-term care. I plan on dying before I go to a nursing home” is probably the most common response when seniors are asked about their plans for their long term care. However, according to a recent study conducted by Emory University, the risk of needing long-term care is 45% for those over the age of 65, and the risk increases as you get older. That means 4 out of 6 people in Georgia will face long-term care in their lifetime.

WHO PAYS?

PRIVATE PAY:

With the average cost of a nursing home is $40K A YEAR ($3,333 PER MONTH OR $111 PER DAY/ $55,000 PER YEAR IN NORTH GEORGIA). These figures are expected to DOUBLE over the next ten years, and these figures do not reflect the cost of care being provided in-home ($4,500 per month current), or in an assisted living facility ($2,800 per month for basic living), 50% of all Georgians over the age of 65 could not afford to pay for a one year stay, without selling their homes.

GOVERNMENT PAY:

The Board of Department of Community Health (the government agency in charge of Medicaid) recently reduced Medicaid spending for fiscal year 2003 by 27.7 million dollars, and another 6-7% cut is expected next year.

CONSIDERING THESE FACTS, ARE YOU PREPARED FOR THE RISKS OF LONG -TERM CARE?

MISTAKE # 2. IMPROPER OWNERSHIP OF ASSETS

Assets that are owned with anyone other than a spouse causes a loss of eligibility for government assistance to pay for long-term care needs. There are also adverse tax consequences of owning assets jointly with anyone other than a spouse. Owning assets jointly with anyone other than a spouse also create asset protection problems, and cause a loss of control of assets, or the loss of the ability to manage asset for use of one or both of the joint holders in the event of sickness or incapacity.

MISTAKE # 3. FAILURE TO ESTABLISH A PLAN

If you were diagnosed with cancer, you would not seek the advice of a general practitioner who treats your common cold. In preparing for long-term care, choose professionals who have the experience and knowledge to establish a plan specifically designed for your long-term care needs.