What else can you do to prepare for long-term care costs?
Medicaid is a jointly administered federal/state government health insurance program that will pay for living assistance. You are probably aware of the fact it is a need-based program, so there is a $2000 limit on countable assets.
A home is not considered to be a countable asset, but this is deceiving. Medicaid is required to seek reimbursement from your estate if you use the program to pay for long-term care. As a result, they could place a lien on your home if it is in your possession at the time of your passing.
To protect your assets and gain eligibility if and when you need it, you could convey assets into an income only Medicaid trust. This would be an irrevocable trust, and you would not be able to act as the trustee or access the principal but you could receive distributions of the earnings.
After your death, the assets would not count, but you have to act in light of the five-year look back period. You have to complete all divestitures at least five years before you apply for Medicaid coverage.