Chapter 19: Controlling Costs in Your Final Years
Paying for Long-Term Care

Securing a steady retirement income and a place to live, as we discussed in the last chapter, are critical parts of estate planning for your final years. But nothing so concerns most older Americans as paying for the medical needs that often accompany getting older. This chapter discusses some of the major options available. Because the eligibility rules of government programs such as Medicare can be confusing, you might want to include these issues in your estate-planning discussion.

Medicare and Medicaid

It’s easy to get them mixed up, but the key difference is that Medicare is open to all individuals 65 and older, while Medicaid is open to those whose income is under a certain amount. Medicare won’t pay for most long-term care. Medicaid will, but you have to use up most of your assets before you qualify for Medicaid reimbursement. We discuss both briefly in this chapter.