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How to avoid losing your home due to nursing home debt

There comes a time in life when moving into a nursing home becomes a sensible decision. It provides ample social opportunities and constant medical attention, plus other advantages.

The cost can be exorbitant, yet senior living communities cannot seize properties to pay for their services. That said, those who use Medicaid to cover nursing home expenses are at risk of the government selling the homes still in their names after they die. Thankfully, there are maneuvers one can make to prevent this from happening.

Buy long-term care insurance

The purpose of this specialized form of coverage is to provide payment for senior care expenses. Although these policies usually do not match the entire amount, they can significantly defray the costs.

Use a life insurance policy

Sometimes, it is possible to sell life insurance policies for up to 60% of their death benefit. This money can then go toward paying down nursing care bills. Such a decision also eliminates these life insurance premiums that often rise with age.

Establish a Medicaid Asset Protection Trust

When enrolling in Medicaid, it is possible to have a home and other assets become part of a MAPT. An adult child usually becomes the trustee and receives power over these resources. The property can then become a regular source of revenue through renting. Further, this option allows the trustee to sell the home without a Medicaid penalty.

Losing a home is a tragic event for anyone, young or old. Preventative actions help certify that a house stays in particular hands, even when the winds of change take hold.