Memory Care Financial Assistance Options
Making the decision to move a loved one to a memory care community is significant. Understanding how to finance this transition can add another layer of complexity. At Anthem Memory Care, we're committed to easing this process for you. Partnering with trusted financial experts, we provide guidance and answers to your financial inquiries.
Financial Support
How much does memory care cost? What are my options for memory care financial assistance?
The cost of memory care can vary depending on numerous factors, including the location of the memory care facilities, the quality of care provided, and the type of services and amenities offered.
However, there are resources for family members available to help provide elder care financial assistance. It is essential to carefully consider all options for financing memory care and explore available resources to ensure the best possible care for your loved one.
Financial Assistance
Aid and Attendance
Memory care financial assistance may be available to veterans or surviving spouses in need of ongoing assistance with daily activities of living. One program offered by the Department of Veterans Affairs (V.A.), Veterans Aid and Attendance (A&A), might assist eligible individuals in obtaining the necessary support.
The V.A. offers financial aid for veterans and spouses who are in need of care, including individuals in memory care communities, depending on the circumstances. Although assistance may vary, the support can be significant for those who qualify. To learn more about how the program might benefit you or your family, visit aidandattendance.com.
Veteran Benefits
Bridge Loans
It is very common to face a brief waiting period before long-term funds become available to pay for residential care. Bridge loans for assisted living are a type of financial tool designed to provide temporary funding for individuals or families who are transitioning from their current living situation to assisted living. These loans serve as a bridge until a more permanent solution can be found, such as long-term senior care, Medicaid coverage, or the sale of a property.
Long-Term Care Insurance
Long-term care insurance can cover a portion of a resident's stay in a memory care community. Because these policies vary from person to person, coverage is individualized. Our Executive Director can help identify what is required for coverage under your existing insurance policy. We can also help you fill out the necessary memory care insurance coverage forms and will work with your insurance provider to assist you in receiving your benefits.
Secured Lines of Credit
A secured line of credit is quite similar to a bank account. However, instead of making deposits, you borrow money against it. This source of credit can be secured by CDs, stocks, personal property, and cash. To help you pay for memory care services, you can borrow from it without having to renegotiate terms. If you do not qualify for a secured line of credit, you may also want to consider a reverse mortgage.
Reverse Mortgage
This financing product is a loan available to individuals aged 62 and older, allowing them to leverage the idle home equity in their property. The homeowner is required to repay the loan, but this repayment is deferred until the owner passes away, moves out, or sells the home. For couples, safeguards ensure that as long as one person continues to occupy the home, they can remain living there.
Life Insurance
Life insurance is a type of insurance that people typically buy so their loved ones receive a sum of money after the policyholder’s passing. And as you age, your life insurance premiums may increase. In some cases, policyholders decide to let their policies lapse because of the increased premiums. Depending on the type of insurance policy you have, you may be able to access funding from it or sell it during your lifetime.
Gift Tax Exemption
Family members may want to assist in the move to a memory care community. One way would be to take advantage of the IRS gift tax exemption. Individuals can gift up to $14,000* per person each year without having to pay any taxes on such gifts. However, contact your personal financial advisor or tax professional; these individuals can assist you in finding out how this may benefit both you and your loved one.
*May change.
Selling A Home
When you move to a senior living community, the equity in your home may be one of your largest assets. Working with a real estate agent to sell your home at maximum value can provide money to help fund your senior living expenses.
Tax Benefit
Assisted living or memory care residents may be eligible for the deduction of medical expenses paid for qualified long-term care services. Please consult the IRS Publication 502 and a qualified tax advisor to determine if you or a relative qualifies for this deduction. By understanding the potential tax benefits, residents can make informed decisions regarding their healthcare expenses and optimize their tax situation.
Medicaid For Memory Care
Medicaid is a federal program that provides financial assistance to individuals with low income and few assets. It offers a range of healthcare services and may include memory care. The benefits and eligibility criteria for Medicaid for memory care financial assistance may vary from state to state.
Please don’t hesitate to reach out to our Community Relations Director for financial guidance, contacts, and resources.
