Protecting your home and assets requires asset protection and is an essential part of any proper estate planning strategy. However, when families are faced with a loved one who has suddenly become incapacitated or is gradually declining, they may make mistakes in the long-term care of their loved one by acting in haste or acting on bad information.
Even lawyers who do not focus on elder law are often confused by ever changing and complicated laws. This is why they will often refer you to an elder law attorney. Here are five mistakes when protecting your home and assets that many people make when faced with paying for care for an aging loved one:
1. Thinking that using a template for power of attorney you have found off the internet and signing it will give your loved ones legal say in your long-term care and other decisions that may need to be made.
2. Assuming that your health care insurer or Medicare will always pay for any long-term care needed if you become incapacitated. Most will not cover a long-term stay in a nursing home, and this cost is $14,000 a month in Connecticut.
3. Protecting your assets by transferring them to your children. Typically, this just creates a penalty period and will actually just transfer risk on to your children.
4. Thinking that if you have a joint bank account, half of the account will be protected. No matter how long the account has been held by two people, the state will count the whole bank account as solely yours.
5. Not getting the advice you need from an experienced elder law attorney.
These five mistakes people often make when trying to protect their home and assets can be avoided simply by speaking with a knowledgeable elder law attorney.