Most people will need long-term care at some point, and the rules around who pays for it are a costly surprise for families who have not planned ahead.

• Medicare does not pay for long-term care at all — only Medicaid does, and only if you qualify.
• To qualify you need a medical need for daily help like bathing or dressing, and you can hold almost no cash or investments.
• Your home, car, and personal items are usually protected, but the state can put a claim on the house after you die to recover its costs.
• That claim is dropped if a spouse or dependent child still lives in the home.
• Giving away money or property to qualify does not work — the state looks back five years, and the penalty is a waiting period before benefits start.

Outlook: With 70% of Americans expected to need long-term care, planning early through insurance, retirement savings, or veteran benefits is the only way to keep the cost off your family.