What Happens to Assets If You Go Into a Nursing Home?

The financial impact that a nursing home can have is generally underestimated by the average American. Some people envision a set duration of care (like for a few years). But what most people definitely don’t want is a never-ending money pit. 

This is a reasonable stance to take. But what’s more pressing is the fact that most people just haven’t faced the harsh reality of long-term care costs.

And for ultra-high-net-worth individuals (UHNWIs), the stakes could be even greater. A stay in a nursing home can rapidly eat up a lifetime of acquired wealth, therefore destroying a legacy in short order.

It’s here where Dominion can make a big impact. As trusted advisors to some of the world’s most successful UHNWIs, we are builders of impregnable financial fortresses. Our customers are like you – individuals and families with significant fortunes who depend on us to negotiate the difficult terrain of wealth preservation.

A common concern that many of our clients have is what happens to their assets if they go into a nursing home. So today, we’re highlighting the often-overlooked financial dangers of nursing homes and discussing how our strategies here at Dominion can protect both your assets and your legacy.

The Truth About the Price of Care

When you look into the cost of nursing home care in the United States, what you’ll find is pretty disturbing. As per Genworth’s Cost of Care Survey for 2020, the average annual cost for a private nursing home room is $105,850.

This figure is alarming enough on its own, but it’s made even worse when you realize that it’s only the baseline. Depending on the level of care you need and where the specific facility is located, yearly costs can easily reach hundreds of thousands of dollars.

What Drives These Exorbitant Expenses?

As labor-intensive enterprises, nursing homes need round-the-clock nurses, assistants, therapists, and other medical specialty personnel. It’s easy to see the financial burden when you add to this the costs of specialized medical equipment, medications, and facility upkeep.

Location also has a big impact on expenditures. In a metropolitan area, a nursing home would most likely fetch a lot more than in a comparable facility in a rural setting. Just as important is the type of facility; specialized memory care centers, for example, may cost more.

What Does Medicare Really Pay For?

Many believe Medicare will pay for time spent in a long-term nursing facility. This is a false notion that can have some costly consequences. The truth is that Medicare does provide some coverage for skilled nursing care, in that it only covers up to 100 days per benefit period. And that’s only if you satisfy certain criteria.

Yes, Medicare covers long-term nursing home care. Qualifying for it, however, might not be worth the hassle in the long run, and there are a lot of reasons to support this. For one, the program sets demanding income and asset limits, which essentially forces people to become poor in order to get the help they need. Many states mandate that a person may only qualify if they have countable assets worth less than $2,000.

And this brings us to another glaring issue: the “spend down” trap. With overpriced nursing home bills looming, individuals are forced to deplete their life savings, sell their homes, and liquidate other assets just so they can meet Medicaid’s draconian requirements. It’s not only emotionally and financially devastating; it deprives people of their hard-earned money and leaves little left for their families.

At Dominion, we simply cannot abide by this. It’s our belief that defending your money shouldn’t mean compromising your financial stability. Thus, you get real dedication that’s passionate about protecting what’s yours. You won’t see us making rash decisions or scrambling for a last-minute solution.

We’re in the business of creating plans that are centered around what you need – not what everyone else needs. To do this, we customize, tailor, and personalize our methods to accommodate you – all while keeping your assets locked in and secure. So even if you go into a nursing home, you’ll know all the hard work you put forth to build your legacy will remain equally secure.

The Conventional Methods of Doing Things Are Not a Real Safety Net

Many individuals depend on conventional methods to safeguard their possessions when confronted with the possibility of paying for nursing care. These strategies initially seem nice, but they usually fail and expose individuals to financial catastrophe. Let’s review several well-known techniques together, along with the risks that come with them.

Long-Term Care Insurance

Long-term care insurance makes sense since it seems like a pretty decent concept. After all, paying for your nursing home care will help to relieve the pressure on your own assets. And yet, this supposed protection comes at a high price. Particularly for elderly persons or those with pre-existing medical conditions, long-term care insurance rates can get quite hefty.

Coverage is further constrained by insurance companies sometimes imposing restrictions on benefits or excluding altogether certain forms of therapy. This implies that you might spend a lot for coverage that, when most needed, does not sufficiently protect you. That’s bad business, no matter how you look at it.

Transfer of Assets

Another common strategy is to move assets out of your name. You may do this by establishing some type of business or by giving gifts to relatives. Though it seems like this would guard your money from Medicaid restrictions and nursing home expenses, it is a bad idea. Why is that? Because of the “look-back period” of five years for Medicaid.

Basically, this implies that moving any assets during this period could result in penalties or outright losing your Medicaid coverage. Moreover, attempting to tackle these guidelines without professional assistance could result in even more negative consequences. A huge loss of money could happen with just one mistake.

The Risks of Going It Alone

Protecting your assets calls for many complex guidelines and probable complications. Trying to negotiate this challenging terrain without expert assistance puts your financial health at risk. Again, all it takes is one mistake to cost you big time. Many decent people believe false data, outdated ideas, or blatant scams, thereby putting their money at risk.

Here at Dominion, our experienced team of professionals is well aware of the great stakes involved. We never offer cheap copy-and-paste “solutions” or antiquated approaches. Quite the opposite, actually – we are a collection of highly qualified experts who possess extensive knowledge about the laws and regulations that go into safeguarding assets in different jurisdictions.

Our strategies are designed to meet the particular needs of every customer. Using this customized approach will help you to ensure that your money will be secure regardless of the issues you face. Whatever you are going through or what the future holds, you’re in excellent hands with Dominion.

Designed for Your Financial Needs

At Dominion, we don’t look for strategies that work for everyone. We appreciate that your money is unique, and as such, we create custom asset protection strategies that fit your goals and situation.

Our team invests time in learning about your family, your money, your long-term objectives. After that, we create a schedule that suits your requirements and will protect your wealth for future generations.

Our expertise transcends just what is relevant in the United States. Dominion knows a lot about various jurisdictions, and we have a global network of legal and financial professionals.

By understanding how the world operates, we can pinpoint the most beneficial financial products and legal systems for you. Want to create an offshore trust? What about reducing your tax load? Perhaps you want to keep your money safe in a jurisdiction that favors your financial standing. Whatever the case may be, Dominion will be there to guide you.

Regulations Change. Dominion’s Values Don’t.

Laws and regulations change all the time. So we’re on a mission to continually look for events that could influence your wealth. No matter what issues might come up in the future, we are continuously fine-tuning our strategies to ensure that your wealth stays protected. Because at Dominion, we’re always two steps ahead of everyone else.

We provide a broad spectrum of wealth management services in addition to asset protection. We do this to be sure that you have the data and resources necessary to not only safeguard but also actively increase your wealth. We offer superior tax-saving strategies, and we don’t skimp on investment management.

Going to a nursing home might have its ups and downs, but you don’t have to let it harm your financial legacy. You’ve put in a lot of work to get to where you are today. Now it’s time to protect it from looming threats. Dominion is just the ticket you need for financial peace of mind and stability.

We Protect Your Legacy for Future Generations

There’s no question – nursing homes pose a real threat to everything you’ve worked hard for. But with smart asset protection, you can rest easy knowing your wealth is in good hands. And that benefits both you and the next generation. Reach out today -- let’s develop a strategy to safeguard your assets.