Long-Term Care Insurance Can Help Pay to Live In Assisted Living:
Many of our Kensington Place residents with long-term care insurance are able to utilize their existing policy to cover all or a portion of their stay. Because of the varying terms of individual polices, coverage will vary. Our team can assist you in identifying what is covered under your current plan.
Life Insurance Converted to Pay for Senior Care Expenses:
Did you know a life insurance policy (long term care benefit plan) may be converted to pay for care at an Assisted Living Community like Kensington Place? The conversion process transfers ownership of a life insurance policy from the original holder, to an entity that acts as the benefits administrator. The benefits administrator assumes all responsibility for paying the monthly premiums on the policy to the insurance company, and agrees to pay the previous policy holder a series of monthly payments based on the value of their policy.
These payments can then be used to pay for a person’s home care, nursing home, hospice care and assisted living costs. There are pros and cons to this conversion and if you are interested in learning more about this process, please consult the services of an independent financial adviser who specializes in the finances of older adults.
Veteran’s Aid and Attendance Program:
The US Department of Veterans Affairs Aid and Attendance Program provides benefits for veterans and surviving spouses who require the regular support of another person. If eligible, you may be able to receive this benefit of up to $2000 per month while residing in an assisting living community such as Kensington Place. To qualify for Aid & Attendance your physician must establish that you require daily assistance by others in reference to several activities of daily living such as eating, bathing, and dressing. And eligibility must be proven by filing several documents from the VA.
Veterans must have been in service during official periods of wartime:
World War II: 12/07/1941-12/31/1946
Korean Conflict: 6/27/1950-1/31/1955
Vietnam Era: 8/5/1964-5/7/1975
Tax Deductible Expenses to Live in Assisted Living:
In many cases, payments made to live in an Assisted Living community may be tax deductible. Under the Health Insurance Portability and Accountability Act, the cost of maintenance of personal care services that are required by an individual who is either 1) unable to perform at least two activities of daily living or 2) who suffer from severe cognitive impairment and who require supervision to protect self and others from threats to health and safety, may be tax deductible if such services are provided pursuant to a plan of care prescribed by a licensed health care practitioner. You may be required to obtain a letter from a physician prescribing such plan of care. In addition your loved one may be required to meet certain other conditions.
If you are an adult caregiver and you have provided over half of your loved one’s total financial support for the calendar year living in an assisted living community, you as the caregiver may be able to deduct your loved one’s medical expenses. Kensington Place is unable to provide tax advice and we encourage you to explore this opportunity further and seek the advice from your tax adviser.
Gift Tax Exemption:
Family members can pitch in toward the cost of assisted living and take advantage of the IRS gift tax exemption. For 2017, individual family members can provide gifts up to $14,000 per person, per year without being required to pay the IRS gift tax. Before making any kind of financial decision, we advise that you contact your personal financial adviser or tax professional.