When creating an estate plan, you’ll naturally turn a good portion of your attention to your life in the future. And for most people, that means coming face to face with the idea that they may one day require long-term care, such as in a nursing facility.
Estate planning and long-term care go together hand in hand. With the right approach, you can better plan to pay for long-term care, while also anticipating the financial impact.
It’s your hope that you never have to receive long-term care, but you must prepare as if this will eventually come to light. Neglecting to do so will result in a situation where you’re not fully prepared, which can cost you time and money, while also taking a toll on your health.
Fortunately, there is more than one way to pay for long-term care. Here are some of the most common options:
- Medicaid: If you qualify for this government assistance program, you’ll receive assistance paying for the necessary long-term care. Even if you don’t qualify right now, don’t write it off. You may be able to alter your financial circumstances enough in the future to become eligible.
- Long-term care insurance: With this type of policy, you pay a premium every month with the hope that you never have to use the coverage. However, if you buy when you’re healthy, you’re able to keep your premium to a minimum. Before buying long-term care insurance, read the fine print to ensure that you know exactly what it covers.
- Personal assets: Even if you have enough personal assets to pay for long-term care, it’s not something you want to do. This can quickly deplete your savings, retirement accounts and other assets that you’ve built up over your life. Subsequently, you don’t have as much, or anything, to leave behind to your loved ones. However, it may be one of your only options.
There’s a lot to think about when creating an estate plan, with matters regarding long-term care a top priority.
When you plan for the potential need for long-term care later in life, you will put your mind at ease by knowing that you have a sound strategy in place.