Top 6 Myths About Planning For Aging Seniors

By Terry Douglas, Maryland Elder Law Attorney

Douglas Law Office

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Top 6 Myths About Planning For Aging Seniors

Myth #1 Nursing home costs in Maryland average $1,500-2,500 per month per person. Hardly! Current nursing home charges for one resident typically run $5,000-10,000 per month, or $60,000-120,000 per year, which does not include prescription drugs — and those costs continue to rise.

Myth #2 Children can care for a parent with Alzheimer's disease at home, without the need for nursing home care. Not true. Many patients with Alzheimer's disease end up in nursing homes because children are simply unable to provide the level of care their parent needs. In most cases, the children want to care for their parents. But, as a practical matter, they simply can't. Moving a parent into a nursing home is an intensely personal issue and should not be labeled as a right or wrong decision. In many cases, it's the only realistic option.

Myth #3 Standard legal forms are all you need for a good estate plan. Not true. A competent estate plan begins with clearly defined goals, supported by well-drafted legal documents, and the repositioning of assets, as needed, to protect your estate from taxes, probate costs, and catastrophic nursing home costs.

Myth #4 You will never end up in a nursing home. That's hard to predict. Your odds are roughly 50/50. Of Americans reaching age 65 in any year, 43% will spend some time in a nursing home. One in four seniors will require care for longer than one year. That means one in four seniors will face costs of $60,000 or more. Even worse, one in ten will require nursing home care for more than five years, costing a staggering $250,000 or more.

Myth #5 Medicare will pay for all of your long-term nursing home costs. Not true. Medicare may pay for up to a maximum of 100 days of skilled care in a nursing facility, providing you meet certain requirements (1) you must have moved into the skilled nursing facility within 30 days after your discharge from a hospital. (2) Your hospital stay must have lasted at least three days. And (3) you must require and receive an ongoing skilled level of care. Medicare will pay the entire cost of your care for days 1-20, but for days 21-100 Medicare will provide only partial coverage.

Myth #6 The agent you appointed in your Durable Power of Attorney automatically has the power to take property out of your name, if you ever need Medicaid. Not automatically. When planning for Medicaid eligibility, the best and most effective tool is a General Durable Power of Attorney that includes proper gifting powers. Your agent under the Durable Power of Attorney will be able to re-title your assets only if your Power of Attorney contains authority to make gifts.