One of the biggest concerns many people have about growing older is spending the assets they earned over a lifetime to pay for nursing home care. The cost of nursing home care is astronomical. According to the New Jersey Department of Human Services, the average daily cost of nursing home care was approximately $330 a day in 2015. These costs can drain decades' worth of savings in a relatively short period of time.
Medicaid covers these costs for individuals who qualify. The problem is that in order to qualify for Medicaid, you must prove that you have limited income and assets. Thankfully, there are many effective strategies to qualify for Medicaid without first spending down all of your assets. On December 1, 2014, the federal government authorized the use of Qualified Income Trusts (QITs) in New Jersey. These instruments have proven to be an effective estate planning tool for many families.