You’ve heard it before: “You can’t take it with you.” Well, maybe not literally. But a popular misconception is that you can’t use your money to pay for senior living in Texas. The truth is, there are many different ways you can finance your nursing home or assisted living stay and still leave the funds behind for your family. Here’s how to get started:
What are Private Funds?
Private funds are money that you have saved for your use. These funds can be in the form of a lump sum, or they can be a monthly amount. Private funds may also come from your bank account, retirement account, or inheritance. The phrase “private” refers to the fact they aren’t connected to any public organization or government program.
Types of Private Funds
If you don’t know where to start, there are three main categories of private funds that you can explore: savings, investments, and real estate. Here’s more information on each one:
- Savings and investments. For example, money in a bank account or an investment portfolio, which may include stocks and bonds you own.
- Real estate. This includes the value of your home or other real estate holdings, like rental properties.
- Business income. If you have a business that generates income for you, such as from a sole proprietorship or partnership, that income is private funds as well.
- Life insurance policies with cash values that haven’t been distributed are another type of private fund, but only if the payout is for medical expenses rather than death benefits.
In Texas, Public Funds Include:
- Medicaid Waiver Program (MHW) – This program is available to those who meet specific income guidelines and qualify for Medicaid based on their need for long-term care services; however, this program does not cover all long-term care costs (for example, it may not pay for your meals). You can use private funds toward services if they aren’t covered by a Medicaid Waiver or another state program. If they are covered by a Medicaid Waiver or another state program, then only public funding will be used to pay for them because that is considered “the best interest of the person” according to federal law.
- Long Term Care Partnership Program (LTCP) – This provides funding through tax credit vouchers, which allow qualified individuals over 65 who meet specific income requirements and reside in eligible communities throughout Texas to access affordable housing options.
How do You Know if You can Afford Private Pay Senior Living In TX?
There are things to take into consideration when deciding whether or not you can pay for private senior living in TX. First, you need to know your monthly income and expenses. This includes any bills, such as utilities and food, as well as other costs that frequently come up in your life.
Next, it’s important to understand how much private pay senior living actually costs. You should research different communities’ rates online so you can make sure they fit your budget.
Finally, think about whether there are other financial obligations you depend on. For example: Do you have kids who are still in school? Is there a mortgage payment coming up soon? Are there other medical expenses that need attention right now?
Conclusion
If you’re considering senior living in Texas, we hope this article has helped you better understand private pay options. We know it can be a lot to take in at once, so if there’s anything we can do to help make your transition easier, don’t hesitate to reach out!
