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 Illinois 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”

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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 Illinoisbefore 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

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program, meaning the value of the asset will be added back into your estate for purposes of determining eligibility for benefits. Therefore, simply 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