Worried About Nursing Home Costs? Here’s How To Help Protect Your Parents’ Assets

Watching your parents age is never easy—especially when it becomes clear they may need long-term care. If you’re facing the possibility of placing a parent in a nursing home, you may be wondering, “How do we afford this?” and “Can we protect what they’ve worked a lifetime to build?” Our skilled and compassionate Huntsville, AL estate planning lawyer understands what you are going through and is here to help.

At New Beginnings Family Law, we help families just like yours navigate these tough questions with thoughtful planning and proactive legal strategies.

The Cost Of Long-Term Care Is High—And The Options Are Limited

Nursing home care in Alabama can easily cost $70,000 a year or more. That’s a steep price—and unless your parents have long-term care insurance (which many don’t), they’ll be paying out-of-pocket or turning to Medicaid for help.

But here’s the catch: Medicaid has a five-year “look-back” period. That means any assets your parents transfer within five years of applying for Medicaid can be subject to seizure after their death to repay the cost of care.

So What Can You Do To Protect Their Assets?

If you believe your parents may not need nursing home care for at least five years, there are several legal strategies that could help shield their assets:

1. Early Gifting

Giving monetary gifts or property to family members well before care is needed can protect those assets from later claims. Timing is everything here—early planning is key.

2. Life Estate Deeds

Your parents can keep the right to live in their home (as life tenants) while transferring future ownership to a family member. If this is done five years or more before they pass away, it may keep the property safe from Medicaid recovery.

3. More Advanced Tools: Trusts And Annuities

Depending on their financial situation, tools like Medicaid asset protection trusts, annuities, or other structured transfers may be appropriate. These strategies require detailed legal review to ensure compliance with Medicaid rules.

Why Legal Guidance Is Essential

Every family is different—and every estate has its own set of considerations. That’s why it’s so important to consult with an experienced elder law attorney who can evaluate your parents’ unique situation and timeline.

Planning ahead not only protects your parents’ assets—it provides peace of mind for the whole family.

Start The Conversation Now—Before It’s Urgent

No one wants to imagine their parents in a nursing home, but proactive planning today can prevent heartache and financial stress tomorrow.

At New Beginnings Family Law, we’re here to help you understand your options, protect your family’s legacy, and navigate this chapter with clarity and compassion. New Life. New Direction. New Beginnings. Reach out to our caring staff today.