Long Term Care Plan

What Houston Families Need to Know When It Comes to Planning for Long-Term Care

Published on: February 16, 2025 | By Thomas W. McCulloch

health savings accounts in estate planning

There’s no way around it: long-term care in the United States is expensive. At McCulloch & Miller, we help families plan for the later years of their loved ones’ lives, and for many clients, this can be a daunting process. After several decades of working in the industry, there are several things that we believe Houston families need to know when it comes to planning for long-term care.

Long-Term Care Costs

To find out a realistic estimate of what long-term care might cost you and your loved ones, we recommend using this resource from carescout.com. The unfortunate reality is that you should expect to spend a minimum of approximately $100,000 per year on long-term care, if you are paying out of pocket. This cost is rising every year, but it is important to note that your cost will depend on factors like the level of care you might need.

Payment Options

There are three basic options when it comes to financing a nursing home, a retirement community, assisted living, or a live-in aide: paying out of pocket, using long-term care insurance, or applying for Medicaid. Paying out of pocket allows the greatest amount of flexibility, but it is unrealistic for most individuals given the rising costs of long-term care. Long-term care insurance is a viable option, but it requires paying into the insurance early on. It also involves some risk, in that if you do not end up needing the care your insurance would cover, you lose the money you have invested.

A Primer on Long-Term Care for 2024/2025

Published on: October 7, 2024 | By Thomas W. McCulloch

As time goes on, long-term care gets more and more costly for Americans. Unfortunately, it is all too common that we have clients come to us, worried about how they will pay for the long-term care facility they might eventually need. Today, we review the basics of what you need to know in this day and age about planning for long term care. As always, with more specific questions, speak with a Houston estate planning attorney that can help you figure out the best path forward for you.

Start Your Planning Early!

We cannot emphasize this point enough: plan early and often for your long-term care needs. If you are wondering: is now too early to start saving for my old age? The answer is, definitely not! With rising prices and an uncertain economy, it is more important than ever to begin thinking now (no matter how old you are) about how you might pay for your long-term care.

Think Through Ways to Fund Your Long-Term Care

The basic options are as follows for funding your long-term care: you can pay privately, electing to pay a nursing facility out of pocket. This is, of course, the most expensive option, but it also provides for maximum flexibility. Secondly, you can pay with some kind of long-term care insurance. This means that you need to get a policy in place early, which can be expensive and requires planning far in advance. Thirdly, can access Medicaid or other public benefits to pay for your long-term care. To access Medicaid, you need to position your assets in a way that allows you to qualify for this government funding – again, this can require careful planning and expert advice.

How to Pay for Long Term Care in 2024 and Beyond

Published on: September 15, 2024 | By David W. Miller

In Texas and in other states, long term care is expensive; nursing homes, private care, and health aides are costly, and as Americans age, they face the issue of figuring out how to unlock crucial medical services. In general, there are three main ways to pay for long term care, all of which we will review in today’s blog. The reality is that each person’s financial circumstances will be different, and each person will have a slightly different method that allows them to access important long term care resources.

Option 1: Pay Out of Pocket

First, you could pay out of pocket for long term care. This, of course, is difficult for most Americans. It also requires significant financial planning prior to old age. Paying out of pocket does allow for maximum flexibility in both how you access your services and in choosing the services you access. If you are financially able to choose this option, it is the best course of action to take.

Option 2: Use Long Term Care Insurance

Second, you could use long term care insurance to pay for your nursing home or care facility. The insurance company will subsidize your care, offering significant savings. Of course, this option requires that you opt into a specific kind of insurance. To access the insurance, you must 1) pay a significant cost and 2) plan to enroll in the insurance early on.

Signs of Elder Abuse: How to Look Out for Your Loved Ones

Published on: March 10, 2023 | By Thomas W. McCulloch

When we speak to clients who have elderly parents, grandparents, or friends, one of their biggest concerns is that their loved ones will be taken advantage of through financial abuse. Financial abuse is incredibly common among elder individuals, and the most important thing that others can do is closely monitor how and when their loved ones’ money is being spent. If friends and family keep a watchful eye, this can greatly reduce the odds that their loved ones will be subject to financial abuse from other less trusted individuals in their lives.

It is important to know what to look for when monitoring for possible financial elder abuse. An obvious red flag is a large or unexplained withdrawal or, even worse, a pattern of large or unexplained withdrawals. If your loved one’s bank account is fluctuating in a way that you know is not in alignment with their spending patterns, it is always better to investigate instead of leaving things to chance.

A rapid loss of money can also indicate possible financial elder abuse. Sometimes, we see elderly individuals who face unexplained taxes during tax season or a large number of complaints on FINRA’s broker check site. If your loved one has a broker who is difficult to contact or who has been exhibiting evasive behavior, this is also a sign to look into how that person’s money is being handled.

Rising Long-Term Care Costs in Texas

Published on: October 21, 2021 | By McCulloch & Miller, PLLC

With more Americans than ever reaching retirement age, the number of people requiring long-term care will only intensify too. According to the Department of Health and Human Services, 7 in 10 seniors are now expected to need long-term care before they pass away. However, the price of long-term care has only been increasing, making it more difficult for seniors to pay for this necessary service. Elder law attorneys can advise seniors and their loved ones on how to save for future long-term care expenses, along with potential senior housing options.

Are Long-Term Care Costs Increasing?

With more seniors requiring long-term care, the prices for these services have similarly increased. Recent data has shown that prices for nursing home care increased an average of 2.4 percent annually in the past ten years. In the same time period, home health care prices rose 11.1 percent. And these costs are only going to escalate further: per the National Health Expenditure, spending on home health care will climb 83 percent in the next ten years.
Additionally, these figures do not account for the unpaid care loved ones provide to seniors every year. Millions of individuals take care of their senior loved ones and are not paid for these services.

Paying for long-term care services is difficult enough for many families. In 2019, the average cost of a home health aide was over $45,000 per year, while placing a loved one in an assisted living facility costs a similar sum. On the other hand, nursing home care is, on average, double this price.

Why Is it Essential to Plan Ahead for Texas Elder Care?

Published on: April 29, 2021 | By McCulloch & Miller, PLLC

Thinking about long-term care—especially as a person ages—can be an overwhelming and scary process. However, as time goes on, it can be more difficult for seniors to obtain proper long-term care. This is why planning ahead is essential. Elder law attorneys will discuss financing for long-term care, which includes often applying for Medicare and Texas Medicaid. Although these are difficult conversations to have, starting the process as soon as possible can ensure a smooth transition when the time does come for new housing or medical care.

Plan Now, Avoid Care Issues Later

The Massachusetts Attorney General recently announced a settlement with a nursing home to resolve allegations that they failed to meet the needs of their residents. The Attorney General’s investigation found that within the time span of a year, the nursing home admitted residents that they did not have trained staff members to properly care for them or the necessary equipment. This also included the staff failing to properly prevent the development of ulcers on residents. The case is an example of a nursing home failing to properly care for its residents.

How You Can Pay for Long-Term Care in Houston

Published on: January 27, 2021 | By McCulloch & Miller, PLLC

Planning a person’s future—especially as they are aging and struggling to take care of daily tasks—is both daunting and stressful for the individual and their loved ones. Long-term care is a type of service that individuals often need if they cannot care for themselves, either due to illness, disability, or diseases like Alzheimer’s. Long-term care often includes care in a Houston nursing home, supervision at an adult day care facility, and health services provided at home. However, these services are often extremely costly, so loved ones worry about paying for such care. Below we discuss a few options for paying for long-term care, along with explaining long-term care insurance.

How Can I Pay for Long-Term Care?

The cost of the services is based on numerous factors, including the type of care needed, how long the care is required, where the care is given, and what type of medical professional provides it. Because of this, there are a variety of ways to pay for long-term care. These options are personal savings, Medicaid; Medicare; benefits from a life insurance policy; or long-term care insurance.

What Will Boomers Do When They Need Long-Term Care?

Published on: October 25, 2019 | By McCulloch & Miller, PLLC

A generation seems to be waking up to the concept that they are likely to need to care for a spouse or a family member, and they’re taking it seriously.

A study from Bankers Life Center for a Secure Retirement reported that 90% of baby boomers surveyed understand that they will need to make significant lifestyle changes as part of caring for a loved one. Not only are they aware of this as a new role, but according to Think Advisor’s article, “Long-Term Caregiving Realities Hit Home for Boomers” they are willing to take a number of steps, including:

Cut spending: 66%

How Does a Medicaid Annuity Work?

Published on: July 1, 2019 | By McCulloch & Miller, PLLC

When one spouse needs nursing home care and the other is healthy, there are several approaches that can be taken to securing Medicaid coverage. An elder law estate planning attorney should be contacted, since every situation is different. For some couples, a Medicaid-compliant annuity may be a solution.

What happens when one person needs long-term nursing home care, but does not have long-term care insurance and the family cannot afford to pay out of pocket? Applying for Medicaid is difficult if you have too much money to qualify, but not enough to allow the healthy spouse to afford to pay their bills.

Doing a “Medicaid spend down” requires the person to become broke, before they are eligible. What happens to the spouse’s lifestyle? One solution is a Medicaid Annuity, as described in U.S. News and World Report’s recent article, “What Is a Medicaid Annuity?”

Can I Sell A Long-Term Care Insurance Policy?

Published on: June 17, 2019 | By McCulloch & Miller, PLLC

If a couple is thinking that they can sell the long-term care portion of a policy, because their HMO will cover the cost of long-term or skilled nursing care, they need to think again.

All too often, people think that they have found a simple solution to a complicated problem, and then it turns out that it doesn’t work the way they thought it would. To prevent an expensive mistake, speak with an experienced estate planning attorney, before making an expensive mistake.

While there is a market to sell life insurance through what is known as a life settlement, there’s no market for long-term care policies.