If you are a woman aged 50-60, you belong to what is known as the “sandwich generation.” People in this age bracket are usually juggling two main responsibilities: managing their future and caring for aging parents. Both of these responsibilities need smart financial planning and hard work.
For many people, nursing homes are the last thing they want for their elderly parents. But when private in-home care is expensive, what other paths can you take? Fortunately, depleting your life savings is not your only option.
Start planning months in advance
Private-duty home care in Michigan can run $20-45 an hour, depending on how much care your senior needs. If your parents need help several hours a day, you’re looking at thousands of dollars every month. Instead of asking if you can afford care, focus on how you can structure it.
A realistic care plan and legal planning can allow you to utilize various strategies to decrease the financial burden. Some examples include:
- Utilizing Medicaid planning techniques to protect your finances while still qualifying for benefits
- Structuring caregiver agreements that compensate and protect family members who can choose to care for the elderly
- Exploring programs specific to Michigan (such as the MI Choice Waiver) that fund in-home care
Keep in mind that Michigan does not require a state license for non-medical private duty home care providers. If you plan to sign a home care contract, read the terms carefully! They may not match your desired care plan.
It is best to start creating your care plan in advance. Financial issues do not often show up at month one, but many months later after burning through savings. When considering a new financial responsibility like elderly care, it is always best to act long before a crisis hits.
Long-term protection strategies
While funding elderly care, it is important to safeguard your estate to ensure major assets (such as a family home) are protected. Fortunately, Michigan law offers several protections while accessing government benefits for in-home care. For example, some irrevocable trusts are designed specifically to preserve assets while still qualifying for Medicaid, though they must be established well before Medicaid’s five-year look-back period to be effective.
On the other hand, Michigan is one of a select group of states that recognizes Lady Bird deeds. They allow you to retain ownership of a home during your lifetime and avoid probate or Medicaid estate recovery.
Planning for elderly care can be a struggle, especially in the initial stages. It may be in your best interests to seek legal counsel to determine how to protect all your loved ones.