When creating an estate plan, many older adults consider the implications of a nursing home stay and how it may impact their finances and their children’s inheritance. They worry that the need for long-term care will take all of the assets they spent a lifetime accumulating.
Incorporating long-term care planning into your overall estate plan can offer you peace of mind.
The high cost of skilled nursing
Approximately 70% of adults over the age of 65 will require the services of a nursing home, whether it’s for short-term rehabilitation or end-of-life care. In Broome County, the average daily rate of a nursing home is $401, or $146,352 annually.
Therefore, it’s crucial to ensure your long-term care planning encompasses the following aspects:
- Healthcare directives to outline your preferences regarding end-of-life care and medical treatment and to appoint a trusted individual to make medical decisions on your behalf if you become incapacitated.
- Long-term care insurance, which can help cover the costs of nursing home care, assisted living facilities, in-home care and other services not covered by traditional health insurance. Research and evaluate options to determine coverage, premiums, benefits and exclusions.
- Ensuring that your estate plan has provisions such as powers of attorney, trusts and guardianship arrangements to address future care needs.
- Understanding Medicaid eligibility requirements, including asset limits, income thresholds and the five-year lookback period. This can help you explore asset protection strategies.
You will also need to periodically review and update your long-term care provisions within your estate plan to reflect changes in your health, family situation, financial status or state and federal laws affecting long-term care services.
Making long-term care a part of your estate plan is essential to protecting your assets and ensuring access to health services as you age.