As many New Jersey residents approach retirement, their financial goals shift from those held in previous stages of their lives. Instead of considering how to budget for raising a family and purchasing a home, older Americans have to think about how they will fund the final stages of their lives, when working is often no longer possible. To that end, older people should take the time to think about how Medicaid planning factors into their overall retirement plan.
As baby boomers continue to age, they face a number of issues that are far different from the concerns faced by their parents. Advances in medicine and technology have increased the average American life span, and many baby boomers in New Jersey and elsewhere can expect to live into their 80s and even into their 90s. With advanced age, however, comes the increased likelihood that many will require some sort of residential nursing care in their later years. This means that nursing home planning is an important topic for older Americans.
Medicaid planning is a complex process. Many New Jersey residents do not understand how to qualify or what they should do while Medicaid planning in order to secure the assistance they deserve. Legislation passed in recent years now makes it more important than ever to closely adhere to applicable laws and regulations. Violation of Medicaid laws can result in steep penalties, but our lawyers are here to protect clients from this possibility.
As 2015 begins, many in New Jersey have taken the time to consider things they would like to accomplish in the coming year. For many, planning for their retirement and beyond is at the top of that list. In addition to traditional estate-planning needs, many individuals and families are interested in learning more about the proper Medicaid planning.
When many New Jersey residents consider their estate plan, they focus on ensuring that they can pass their assets on to their loved ones in the manner that they wish. While this is a vital aspect of estate planning, there are other parts of the process that are just as important. Making sure that one’s own late-life needs are taken care of is a prime example. Unfortunately, many individuals fail to recognize the need to address nursing home planning.
For New Jersey families who are looking into their options for late-life care facilities, there are a number of tools and resources available. One of those lies in the yearly ranking of nursing homes conducted by U.S. News and World Report. The annual evaluation is conducted in the hopes of aiding the nearly 1.4 million families who have to make this difficult decision every year. When it comes to nursing home planning, these types of evaluations can help make the decision-making process easier for all involved.
For many in New Jersey, estate planning includes an estimation of how Medicaid will factor into one's later years. Medicaid provides many services to the American elderly population, such as covering the cost of doctor visits, medical procedures and medications. However, Medicaid is not a comprehensive solution for an individual's late-life medical needs, and there will be a great many expenses that are not covered under this national plan. In addition, qualifying for Medicaid can be tricky, and families should begin Medicaid planning well before the need to seek coverage begins, so that individuals can create a strategy for fulfilling all of their medical needs during retirement.
New Jersey residents who are planning for their futures may wonder about how to reduce estate taxes or avoid using their savings to pay for their long-term health care needs. One advisor recommends that couples start their estate and nursing home planning while they are healthy.
While New Jersey individuals over the age of 50 with aging parents may be under the impression that their parents have a plan in reserve for their final years, this may not be the case. More than 80 percent of people older than 65 live at home and independently, but this can rapidly change should a health crisis occur. According to the president and CEO of a nonprofit continuing care retirement community, the children of these vulnerable individuals would do well to ask a series of questions in order to form a solid plan for the future. First, one should evaluate how well his or her parents are really doing in terms of keeping up with everyday tasks and maintaining a healthy social life in addition to their overall picture of health. Second, one must ask his or her parents whether they need help, and the honest assessment should include how much and what type of help, if any, is needed.
A recent study on middle income boomers by Bankers Life and Casualty Company showed that while members of this age group generally have a financial plan in place for their final life expenses, they are largely unprepared for any future that may require nursing home planning or Medicaid planning. Many, aside from plans for their final expenses, simply have plans to retire based on their financial situations.