How to Protect Your Assets from Nursing Home Costs in Kentucky

What Lexington Families Should Know About Medicaid Planning and Long-Term Care

Key Takeaways

• Nursing home care in Kentucky can cost $8,000 to $10,000 or more per month, and these costs continue to rise each year.

• Medicaid can help cover long-term care costs, but eligibility rules are strict and often misunderstood.

• With proper planning, it is often possible to protect assets while still qualifying for Medicaid.

• The earlier you begin planning, the more options you may have available.

  
  

The cost of nursing home care in Kentucky can be shocking. For many families, the need for long-term care puts a lifetime of savings, a family home, and financial security at risk.

The good news is this: with proper planning, it is often possible to protect assets while still qualifying for Medicaid. Understanding how Medicaid planning works—and when to seek legal guidance—can make a significant difference for you and your loved ones.

Understanding Nursing Home Costs in Kentucky

In Kentucky, the average cost of nursing home care ranges from approximately $7,700 to $9,000 per month, depending on the facility, location, and level of care required. In the Lexington area, costs tend to be on the higher end of this range. These figures continue to rise each year, making long-term care an increasingly significant financial concern.

Very few families are prepared to pay these expenses out of pocket for an extended period of time.

It is important to understand that Medicare does not cover long-term nursing home care. Medicare is a federal health insurance program primarily for people 65 and older, and while it may pay for short-term rehabilitative stays following a hospitalization, it does not cover custodial or long-term care in a nursing home.

Medicaid, on the other hand, is a joint federal and state program that can cover nursing home costs for individuals who meet specific income and asset requirements. Because of this distinction, many families eventually turn to Medicaid for long-term care assistance. However, Medicaid eligibility rules are strict, complex, and often misunderstood.

Why Medicaid Planning Is So Important

A common misconception is that someone must spend all of their assets before qualifying for Medicaid. Acting on this belief without guidance can result in unnecessary financial loss.

Medicaid planning is a legal process that helps individuals and families prepare for long-term care while protecting assets whenever possible. Proper planning may help:

• Preserve savings and income

• Protect a primary residence in certain situations

• Provide financial security for a spouse remaining at home

• Avoid penalties and delays in Medicaid approval

  
  

The key is understanding what Medicaid allows—and what actions can create problems.

Common Mistakes Families Make

Families often come to an elder law attorney after unintentionally harming their Medicaid eligibility. Some of the most common mistakes include:

• Gifting money to children or grandchildren without understanding the five-year lookback period and resulting penalties

• Selling assets at the wrong time or for less than fair market value

• Waiting until a medical crisis occurs to begin planning

• Relying on inaccurate advice from friends or online sources

  
  

Because Medicaid rules are state-specific, strategies that work elsewhere may not work in Kentucky.

How an Elder Law Attorney Can Help

An experienced elder law attorney understands Kentucky Medicaid rules and how they interact with estate planning and long-term care decisions.

At Elder & Special Needs Law, PLLC, we work closely with families to develop a plan that fits their unique situation. Depending on your circumstances, this may involve:

• Strategic spend-down planning

• Asset and income structuring where permitted by law

• Coordinating Medicaid planning with powers of attorney and estate documents

• Planning for a spouse who remains at home while the other receives care

  
  

There is no one-size-fits-all solution. Careful planning and legal guidance are essential.

When Should You Start Medicaid Planning?

The best time to plan is before long-term care is needed. Early planning often provides more options and greater flexibility.

That said, even if a loved one is already facing nursing home placement, it may not be too late to protect certain assets. The sooner you seek guidance, the more options you may have.

Protecting What Matters Most

Long-term care planning is not just about finances—it is about peace of mind. Knowing that you have taken steps to protect your family, your home, and your future can ease stress during an already difficult time.

If you are concerned about nursing home costs or Medicaid eligibility, you do not have to navigate this process alone.

Take the Next Step

If you or a loved one may need long-term care, now is the time to get reliable guidance. Contact us today to schedule a consultation and learn what options may be available for your family.

Elder & Special Needs Law,

PLLC

Lexington, Kentucky

(859) 320-0859

www.reedelderlaw.com

Helping Kentucky families protect what matters most.

This post is for informational purposes only and does not constitute legal advice. Every situation is different, and you should consult with an attorney about your specific circumstances.