When most of us think about estate planning, we tend to focus on how our money and assets will be distributed after we’re gone. But there’s another piece of the puzzle that often gets overlooked: planning for long-term care.
The last thing anyone wants to deal with in later life is the stress of scrambling to cover medical costs without a plan in place. That’s why taking the time to prepare for long-term care now can save you and your family a lot of heartache down the road—and it’s easier than you might think, especially with the help of an expert.
Why Long-Term Care Matters
Even though only about 19% of Americans will need long-term care for more than three years, a lot more will require shorter stays in a nursing home or some form of assisted care. And those shorter stays can still add up quickly and take a bite out of your estate.
Whether you need care in a nursing home, assisted living facility, or prefer in-home care, the costs can grow faster than you realize. For example, the national average for assisted living is about $4,500 per month! Without proper planning, your savings can disappear sooner than you’d like. Luckily, an estate planning attorney can help you prepare for this.
What to Discuss With Your Estate Planning Attorney
If your estate plan doesn’t include provisions for long-term care, you may not have a complete picture of your financial future. To make sure you’re on the right track, here are a few things to go over with your estate attorney:
1. Set Realistic Expectations for Care
It’s hard to predict the future, but it’s important to think about what kind of care you might need as you get older. Are there any hereditary health conditions in your family? Do you have current health issues that could play a role? While no one likes to think about worst-case scenarios, being prepared for them is far better than facing them without a plan.
2. Look Into Long-Term Care Insurance
Long-term care can be expensive, and Medicare or your regular health insurance might not cover all the costs. Long-term care insurance is one option that can help prevent you from draining your savings if you ever need extended care. And the earlier you apply for a policy, the lower your premiums will be.
You might also be wondering if Medicaid could cover your care. While it can help in some situations, the qualifications can be tricky, and it doesn’t cover everything. Your estate planning attorney can walk you through the details and help you decide if it’s an option for you.
3. Plan for the Unexpected With Living Wills and Trusts
It’s not fun to think about, but planning for complex medical decisions is an important part of estate planning. That’s why it’s a good idea to set up advance directives and discuss options for living trusts with your attorney. You can also look into other trusts, like life insurance or charitable remainder trusts, as part of your long-term care strategy.
It’s also smart to make sure a trusted person has access to your funds in case of a medical emergency. You don’t want to tie up all your money in investments that are hard to liquidate quickly if you need them. For example, withdrawing from an annuity early could lead to penalties. A well-rounded plan created with the help of your attorney, financial advisor, and insurance professional can give you peace of mind.
Start Planning Now for Peace of Mind Later
Talking to an estate planning attorney about long-term care will help ensure you’re financially prepared if the need ever arises. Even if you never need it, you’ll feel better knowing you’ve covered your bases.
We know that planning for the future can feel overwhelming, but we’re here to make the process as smooth as possible. Reach out to us today, and we’ll help you put a plan in place that protects your finances and your loved ones, no matter what life brings.
