When you sit down to create your estate plan your primary objective will likely be to ensure that your estate assets are handled according to your wishes when you die. Learn more about long term care planning in this presentation.

1. LONG TERM
CARE PLANNING
– Why It Should Be Part
of Your Estate Plan
CURTIS J. FORD
ILLINOIS ATTORNEY
“When you sit down to create your estate plan your primary
objective will likely be to ensure that your estate assets are
handled according to your wishes when you die”

2. Long Term Care Planning – Why It Should Be Part of Your Estate Plan? www.nashbeanford.com
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When you sit down to create your estate plan your primary objective will
likely be to ensure that your estate assets are handled according to your
wishes when you die. A comprehensive estate plan, however, can
accomplish much more than simply creating a roadmap for the division of
estate assets. One addition to your estate plan that you may not have
considered making is long-term care planning. As you age though, the
odds of spending time in a long-term care facility dramatically increase.
The cost of that care can wipe out a lifetime of working, saving, and
investing if you failed to plan ahead. The good news is that by
incorporating long-term care planning into your overall estate plan you can
protect yourself and your assets.

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FACTS AND FIGURES
In order to understand why long-term care planning should be included in
your estate plan, consider some of the following facts and figures:
 The average American female lives to age 81
 The average American male lives to age 76
 In 2050, experts estimate there will be 19.4 million people in the U.S.
over age 85
 In 2050, those same experts estimate that 27 million people will need
long-term care
 You stand a 1 in 5 chance of suffering a disability that requires long-
term care prior to reaching retirement age.
 75 percent of people who live to age 65 will go on to need long-term
care
 1 in 3 seniors dies suffering with Alzheimer’s or another dementia
disease
 The average cost of a year stay at a nursing home in Illinois is
$62,050 for a semi-private room and $74,643 for a private room.
 The average length of a stay in a long-term care facility is 2.5 years
 The average long-term care insurance policy costs $128-$216 per
month in Illinois for someone aged 52-60.
PAYING FOR LONG-TERM CARE
At an average annual cost of around $70,000 and an average length of
stay of 2.5 years, the average stay in a long-term care facility will cost you
$175,000. If you have worked hard all of your life, saved diligently, and

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invested wisely, you undoubtedly don’t want to see the results of your
working, saving, and investing disappear because of a long-term care bill.
Sadly, that is precisely what could happen.
People frequently don’t realize until it is too late that their health insurance
policy does not cover long-term care. Relying on Medicare after retirement
won’t work either as Medicare doesn’t cover long-term care costs. You
could purchase long-term care insurance – if you can afford it. Long-term
care insurance is expensive though, averaging over $2,000 a year in Illinois
before you reach retirement age and the premiums will only increase in
most cases. For most people, the only real option is Medicaid. Fortunately,
the Medicaid program does cover the costs associated with long-term care.

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MEDICAID ELIGIBILITY
While Medicaid covers long-term care expenses, you must first qualify for
Medicaid benefits. The Medicaid program has very low income and assets
limits. For age based Medicaid the value of your countable assets cannot
exceed $2,000 if applying as an individual and $3,000 if you live with a
dependent. If your assets exceed the asset limit you must “spend-down”
your assets before qualifying for Medicaid benefits. In essence, you must
deplete your life savings before Medicaid will help pay for your long-term
care costs.
MEDICAID PLANNING
You may have heard the
term “Medicaid planning”
before and wondered why
someone needs to plan for
Medicaid. Now you know –
to qualify for assistance
paying for the often
exorbitant costs of long-
term care. Planning is
required because the Medicaid program uses a five year “look-back” period
when evaluating an application for benefits. Any asset transfers made
during the look-back period will likely be disregarded by the Medicaid
program, meaning the value of the asset will be added back into your
estate for purposes of determining eligibility for benefits. Therefore, simply

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transferring assets into a family member or loved one’s name just prior to
applying for Medicaid is not an option. Medicaid planning, however, when
started early is a perfectly legal and highly successful option when
accomplished with the assistance of an experienced estate planning
attorney. Medicaid planning protects your hard earned assets and ensures
that you will receive the care you need when you need it.
The need for long-term care planning should be clear by now. If you have
yet to consider long-term care planning as part of your comprehensive
estate plan now is the time to do so. Consult with your Illinois estate
planning attorney as soon as possible to ensure that both you and your
assets are protected.
REFERENCES
American Association for Long-Term Care Insurance, Illinois Long-Term
Care Insurance Reported
LongTermCare.gov, LTC Path Finder
National Care Planning Council, Guide to Long Term Care Planning
Mayo Clinic, Long Term Care: Early Planning Pays Off
Alz.org.,Alzheimer’s Facts and Figures

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About the Author
Curtis J. Ford
Curtis J. Ford is a partner in the law firm of Nash Nash Bean & Ford, LLP. The law firm has
offices in Geneseo and Moline, Illinois and conference facilities available throughout
Northwestern Illinois. Mr. Nash chose the estate and business planning arena because he
believes it provides a positive force in his clients’ lives. He practices preventative, rather
than remedial law. Robert Nash focuses on all aspects of estate planning, including estate,
gift and income taxes, trust and probate administration, real estate, and business.
Nash Nash Bean & Ford, LLP
www.nashbeanford.com
Geneseo
445 US Highway 6 East
Geneseo, IL 61254
Phone: (309) 944-2188
Fax: (309) 944-3960
Moline
5030 38th Avenue, Suite 2
Moline, IL 61265
Phone: (309) 762-9368
Fax: (309) 944-3960