There are a number of options available to families with non-liquid assets that allow them to convert those assets to help cover things like home care expenses. Reverse mortgages, home equity lines of credit, Rex Agreements and EquityKey are real estate based asset conversion programs that provide seniors with financial solutions to their long-term home care needs. In addition to these programs, death benefit loans, life settlements, life care assurance benefits and viatical settlements offer seniors a variety of methods for converting their life insurance policies to pay for home care as well.
There are a number of state-specific initiatives designed to help keep seniors who qualify for Medicaid out of nursing homes and living comfortably in their own homes. These programs will help to cover the cost of home care in cases where that care can be provided at an expense below that of a nursing home.
Tax Credits and Cost of Care Reductions
There are a variety of state and federal programs, initiatives and tax credits that can significantly lower your family’s tax burden, effectively reducing the overall cost of care. Research the following options to find out if your family member qualifies: Alzheimer’s Respite Care, Elderly and Disabled Tax Credit, Federal Elderly Care Tax Credit, LIHEAP – Aid for Energy Costs, Medical Expense Tax Deductions, NFCSP Respite Care, State Elderly Care Tax Credit and Veteran’s Affairs Respite Care.
In addition to researching all of the options above, be sure to look into some of the many non-profit assistance programs available nationally and in your region. There are also a number of state-based programs that may provide financial assistance to cover all or some of the costs of home care.