Are You Playing the Long Game? You Need a Strategy for Your Long Term Care Plan
When planning for disability and end of life, it is important that the plan be made early while you are still competent to express your wishes regarding care. One of the greatest concerns is what will happen to your spouse should long term care be required. Federal and State laws provide some protection of assets for the benefit of the community spouse, but planning ahead will allow you to maximize the amount that can be protected. Playing the long game can help you proactively prepare for future health and personal care needs by evaluating potential services, financial strategies, and insurance options. It aims to ensure that individuals can maintain their desired quality of life and autonomy while managing costs and reducing the burden on family members.
If it is likely that you will need Medicaid benefits to cover the costs of long term care or to provide for basic health care, it is important to know the qualification criteria and how to plan accordingly. There are strategies that can be used to reduce countable resources, protect assets and speed up eligibility for Medicaid benefits.
Even if you are wealthy, you need to consider asset protection, how to minimize tax implications, and navigate complex legal and financial issues related to care. An elder law attorney can provide tailored strategies to preserve wealth while securing quality care and addressing potential estate planning concerns.
If you become incompetent, someone must handle your financial affairs and make personal care and health care decisions for you. A Durable Power of Attorney and Healthcare Power of Attorney are the most important tools, and you would appoint an agent to act on your behalf and that agent will have the authority to make decisions for you. However, if you become incapacitated without having appointed an agent under a Durable Power of Attorney, a Guardian and/or a Conservator may need to be appointed to make decisions for you by Order from the Probate Court.
Like everyone else, you will also need a current Will or Revocable Trust to carry out how your estate will be distributed at your death in accordance with your wishes. If you do not make your own decisions, the intestacy statute will dictate which of your heirs will inherit your assets and in what percentages.
Long term care planning should be proactive. Take the steps now to set yourself up for success later. We can help you later, but it will be harder, longer and more expensive. This is definitely not “old people” stuff! Now is the time to plan for your family.
