“Information Bits from the Boss: Samantha provides brief answers to clients frequently asked questions”

What assets are exempt from long-term care planning costs?
 
The answer to that is that your primary residence is an exempt asset. That means in certain circumstances, a nursing home cannot force the sale of your primary residence to pay for your long-term care. In Pennsylvania another asset that is exempt is your spouse’s retirement. That means if husband goes into a nursing home, his retirement is available for his care, but his wife’s retirement is not available for his care. In addition to the primary residence and the community spouse’s retirement account, a vehicle of highest value is also exempt from long-term care costs. Lastly, in Pennsylvania, every year there is a certain amount that the community spouse is permitted to keep. This figure adjusts every year. For example, in 2022, that amount is $137,400. That means the spouse would be able to keep his or her primary residence, his or her retirement, a vehicle, and 137,400. The rest of the assets, regardless of how the assets are owned/titled, those assets are available to pay for long-term care costs. If you have additional questions, please contact our office.