Long-term Care for

Florida Residents

William “Tom” Edwards Orange Park FL Estate Planning Attorney

The Edwards Law Firm

165 Wells Road, Suite 402 Orange Park, FL 32073

(904) 215-3550

http://www.edwardslawfirm.com

2 Copyright 2013 www.edwardslawfirm.com

Will I Need Long Term Care?

Surprisingly nearly 70% of us will need some form of long term care

in our lives, and it is not always a frail person in a wheelchair residing

in a nursing home. You may have already received some form of long

term care without

realizing it. Remember

when you were

recovering from a major

surgery and family

members came by with

meals and walked the dog

when your spouse was at

work? You were receiving help

with two instrumental activities

of daily living.

The Purpose of Long Term

Care

Long term care is primarily

concerned with assisting in

activities of daily living:

bathing, dressing, eating,

moving from place to place

and using the bathroom. It is

not health care because services are not geared to improving your

health as much as allowing you to live normally. Because of this,

Medicare and any private health insurers do not cover long term care

with very few exceptions.

As we noted earlier, many services can be provided in your home by

family or friends on an unpaid basis. Housekeepers and home health

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Download our free information: “Set

the Stage for Medicaid Eligibility” and

learn critical strategies that can aid in

protecting your assets.

You’ll discover:

How to avoid draining your estate

to pay for long-term health care

The importance of having a

disability plan

How to make sure your wishes are

carried out should you become

disabled or incapacitated.

Long term care is not health care

because it is not geared towards

improving your health as much

as allowing you to live normally.

The Edwards Law Firm Estate Planning for All Generations 3

aides provide similar services on a paid basis. Current costs in Florida

average $17 to $18 per hour for these services. Many individuals also

benefit from adult day services which average $60 per day. Generally

meals and activities such as exercise and educational classes are

included as part of the costs at most centers. Additional benefits are

providing a daily routine and social interaction with staff and

fellow clients at the center. Many centers will include access to

limited medical services including physical therapy.

Residential Care

About one in three people over age 65 will require residential

care during their lifetimes. Assisted living facilities allow

individuals to live in their own apartments while having access

to a variety of care options. Many are set up as residential

communities where you can stay with your family members, and not

all residents necessarily require care. People set up residence in

anticipation of future care needs and are seamlessly transitioned into

higher levels of care when it is required.

Nursing homes are for patients who require 24 hour care, and they

have trained nurses on staff. Generally patients will have private or

semi-private accommodations, with costs in Florida ranging

from $230 for semi private rooms per day and $259 for a

private room. These options are somewhat more than the

average $3234 per month for assisted living care.

Paying for Care

Many insurers currently offer long term care insurance and

more and more people are purchasing policies. There may be

restrictions on what facilities are covered and policy limits on the cost

of service may be lower than the actual cost. As with any contract,

attorney review should be considered before you write the first check.

Everyone should take into

account that at some point

residency in a nursing home or

an assisted living facility may be

needed. About one in three

people over age 65 will require

residential care during their

lifetimes.

The substantial cost of nursing

home care for an incapacitated

person can wipe away a family's

nest egg and the inheritance

planned for surviving family

members.

4 Copyright 2013 www.edwardslawfirm.com

Another possible sticking point is the relatively high premiums that

older clients will pay, based on their greater risk.

Other options include reverse mortgages, annuities and trusts. In

limited cases life insurance can pay for your costs. Reverse mortgages

can provide income for those over 62 who are mortgaging their

primary residence. You remain responsible for taxes, insurance and

general upkeep of your property and do not have to repay the loan as

long as you remain in the home. The catch is that when you die, your

heirs will have to repay the mortgage to retain the home. However,

they will enjoy any remaining proceeds when the sale price exceeds

the outstanding loan.

An estate planning attorney should be consulted with regard to any

annuity or trust agreement. Importantly, either option may not

provide sufficient funding to pay for your care and may have negative

tax implications.

Life insurance options are also very limited. You can use an

accelerated death benefit to pay costs, the caveat being that you are

terminally ill, have a life threatening prognosis, need long term care

for an extended period or are permanently confined to a nursing

home and unable to perform activities of daily living. In other limited

cases, you may be able to sell your policy to access funding. Any

option accessing life insurance will diminish any proceeds available to

your family at your death.

Medicaid

Medicaid is the largest single payer of long term care. This federally

funded and state operated program is designed for lower income, low

asset individuals. Each state is free to establish their own guidelines

for eligibility and they are free to determine the range of covered

services. Each state also establishes the income and asset guidelines.

The Edwards Law Firm Estate Planning for All Generations 5

Income levels are based on federal property level. The latest numbers

available list poverty level at $930.83 for an individual and 1260.83 for

a family of two each month. This is not much money, but those

with higher incomes can qualify if they are spending a portion

of the monthly income for health care.

Assets are generally limited to your home, car, personal

possessions and a small amount of available cash. The

Medicaid qualification process can be involved, and it rivals the

tax code in its complexity.

In conclusion, long term care may be necessary, more so

for the aged women who will usually outlive their

spouses, any person who lives alone and those who

already have chronic health issues. There are options for

care and more importantly how to pay for your care when you need

it.

It is possible to adjust your

assets in order to obtain

Medicaid eligibility. Those that

believe you can simply sell or

gift their assets to others in

order to qualify for Medicaid

may be in for an unpleasant

surprise. You should seek the

services of an experienced

estate, trust, or elder care

attorney before you start to

transfer property.

6 Copyright 2013 www.edwardslawfirm.com

Resources

http://longtermcare.gov/

http://www.medicare.gov/

2012 MetLife Market Survey of Long-Term Care Costs

https://www.metlife.com/mmi/research/2012-market-survey-long-

term-care-costs.html#keyfindings

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William Tom Edwards has been

assisting individuals, businesses

and organizations with their legal

management and legal service

needs for over 25 years. His

practice is primarily devoted to

estate planning, trust

administration, Medicaid

planning, asset protection,

guardianship and probate.

The Edwards Law Firm “Estate Planning for All

Generations”

ORANGE PARK

River Place Office Park 165 Wells Road, Suite 402 Orange Park, FL 32073 Phone: (904) 215-3550 SAINT AUGUSTINE

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By Appointment Only 31 South 4th Street Fernandina Beach, FL 32034 Phone: (904) 215-3550