What if Your Loved One’s Nursing Home Bills Eat Their Savings?

Nursing home care is expensive, often costing tens of thousands per year, and if you’re not prepared, it can quickly deplete savings. The good news? With early planning, legal strategies, and the right attorney, families can protect assets while ensuring their loved one gets the care they need without any financial trouble.

Yes—Nursing Home Fees Are Expensive

The average cost of a private nursing home room in the U.S. is around $12,000 to $15,000 per month. Even a semi-private room can cost $8,000 or more. In Georgia, costs can vary by location and facility, but the reality is the same: long-term care is expensive.

Many seniors assume their Medicare coverage will pay for long-term care. It won’t. Medicare only covers short-term rehabilitation after hospitalization, and only for a limited time. Once the rehab period ends, ongoing custodial care—help with bathing, dressing, eating, and mobility—is out-of-pocket unless Medicaid or private insurance steps in.

Without planning, months or years in a nursing home can wipe out savings, retirement accounts, and even investments. That can leave surviving family members responsible for bills, or force a loved one to move to a facility that accepts Medicaid, but only after spending down their assets to qualify. This can be daunting to hear, but the solution is simple.

Medicaid Is Your Solution

Medicaid is a government program that helps cover long-term care for those with limited income and assets. In Georgia, eligibility rules require that most of the individual’s assets—aside from certain exemptions like a primary home, personal belongings, and some burial funds—be spent down to qualify.

Medicaid is designed to cover long-term care while protecting a portion of assets for a spouse or dependent. Planning ahead can make a huge difference. With the right legal support, families can carefully structure finances to protect what’s left of savings, while still meeting Medicaid requirements.

Planning Ahead: How to Protect Assets

Consider this scenario: Mom has $200,000 in savings and wants to spend her later years in a comfortable nursing home if needed. Without planning, that money could vanish in 18–24 months of care. But there are legal strategies to protect assets:

1. Medicaid Planning:

An elder law attorney can help structure finances so Mom qualifies for Medicaid without losing all of her assets. This might include setting up certain customized trusts, legally transferring assets over time, or designating exempt resources. Planning is key—waiting until a crisis can severely limit options.

2. Long-Term Care Insurance:

Policies purchased earlier in life can cover months or years of care, preserving personal savings. Even partial coverage minimizes the financial burden on family members.

3. Lifetime Gifts:

Giving certain assets to children or loved ones in advance can protect them from being consumed by care costs, but this requires careful planning with an attorney to avoid penalties under Medicaid rules.

4. Legal Tools:

Certain legal and financial structures—like trusts and annuities—can help protect assets while still meeting Medicaid requirements. An annuity is a financial product, usually offered by an insurance company, that converts a lump sum into a steady stream of payments over time. These tools can sometimes reduce the amount of assets counted toward Medicaid eligibility, but every situation is different, so professional guidance is essential to make sure everything is done correctly.

What Happens Without Planning

Without a plan, families are often forced into difficult and uncomfortable choices. 

Your loved one’s savings can disappear faster than expected, leaving them with no option but to apply for Medicaid immediately, which may require spending down assets in ways they hadn’t intended. In the meantime, family members might be pressured to cover remaining bills out of pocket. 

Money and property that were meant to be passed down as inheritance could vanish entirely, and disagreements over care decisions, financial responsibilities, or how remaining assets should be handled can quickly escalate. These scenarios are not just inconvenient—they are emotionally exhausting, legally complicated, and potentially extremely expensive.

It’s just a whole mess for everyone involved. 

Early planning helps prevent these issues completely, giving families relief that their loved one’s wishes are honored and that everyone knows what to do when the time comes.

A Real-World Example

Imagine Mrs. Thompson, a 78-year-old widow in Atlanta. She has $250,000 in savings and owns her home, which is worth $350,000. After a fall, she requires full-time nursing home care.

Without planning, Mrs. Thompson’s savings cover 18 months of care. Once her savings are gone, she must apply for Medicaid. Her home must be placed in a Medicaid-compliant trust or sold to protect her eligibility. Her adult children are forced to worry about bills, inheritance, and whether they can keep their mom comfortable in her final years.

Now imagine a different scenario: Mrs. Thompson meets an elder law attorney before she moves to a nursing home. The attorney helps her set up a Medicaid-compliant trust and adjust her finances to protect a portion of her savings. She enters long-term care comfortably, her children are relieved, and her home and remaining assets are protected for the family.

Conversations Families Should Have Early For Nursing Home Planning

Planning isn’t just about documents and dollars—it’s also about communication. Families should discuss:

• Loved one’s preferences for care, location, and quality of life

• How costs will be covered if savings run out

• Who will manage finances and healthcare decisions

• Expectations for inheritance and protection of assets

Practical Steps for Georgia Families

1. Assess Assets and Income: Know what can be used for care, what is exempt, and how long savings might last.

2. Consult an Elder Law Attorney: We can ensure legal compliance with Medicaid rules and asset protection strategies.

3. Consider Insurance Options: Long-term care insurance or hybrid life insurance policies can provide additional funding.

4. Create Legal Documents: Powers of attorney, living wills, and Medicaid-compliant trusts help avoid crises.

5. Review and Update Regularly: Health, assets, and family situations change—update plans to stay effective.

Bottom Line

Nursing home care can quickly consume savings, leaving families stressed and assets depleted. The good news is that early planning, professional guidance, and personalized legal strategies can protect your loved one’s comfort and financial security.

Facing the reality of long-term care is difficult, but the alternative—waiting until a crisis—can be far worse. By preparing in advance, families can ensure their loved one receives the care they need without sacrificing their assets and peace of mind.