Long-Term Care and Estate Planning

After nearly 25 years in estate planning, we’ve found that one of the most important concerns our clients have is planning for a possible long-term care need. Common concerns include; how much will it cost? Will I lose everything I own if I get sick?  How will I manage if my spouse gets sick?  Or, I’ve looked into Long Term Care insurance and it is very expensive – is there anything I can do to protect my assets from being spent down?  What does it mean to qualify for Medicaid?

Because everyone’s situation is different, these concerns can only be addressed individually. What we have found is that knowing the rules, knowing the laws, and explaining the choices that are available has the greatest impact on the person requiring care, as well as the caregivers. There are vastly more choices available if they can be planned for in advance. Our philosophy is to focus on the quality of life of all of those involved and determine the best solution at the lowest cost. Long term care insurance is only one of those choices. It is important to discuss all of the choices prior to needing to make one.

Here are some of the basics.

What is Long Term Care?

Long term care is a broad category of needs and includes things like cognitive impairments, chronic conditions, and help with daily activities. Although there are many different levels of long term care—with some more severe than others—any long term care condition can reduce an individual’s quality of life and require significant financial resources.

Why is Long Term Care Protection Important?

Being protected against a long term care condition is important for two reasons:

The first is that you will have the resources to deal with potentially life-threatening issues during retirement—a period in which your financial resources are likely limited.

The second reason is that long term care, even for short periods of time, can be extremely expensive. While you may have resources to cover some LTC issues, you may end up exhausting the accumulated wealth you have built.

Anticipating a long term care need is crucial to protecting your physical and financial health, protecting your assets, and ensuring your financial legacy is transferred to the next generation. Failing to have some kind of LTC contingency can whittle away all your hard work.

Legacy Estate Planning Coordinators can walk you through all of your long-term care planning concerns. Contact us now to schedule a complimentary appointment.