Integrating long-term care into your estate plan

Integrating long-term care into your estate plan

On Behalf of | Apr 14, 2024 | Estate Planning

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.