Long-term care is an integral part of retirement planning. The U.S. estimates that 70 percent of people over the age of 65 will need some type of long-term care later in life. On the other hand, many Americans rely on health insurance alone. This is simply not enough.
It takes additional planning to ensure your loved ones are ready before and after retirement. It’s best to sort out assets, finances and power of attorneys in advance. There are things to consider when planning out long-term care, such as:
- Start off with a detailed estate plan. An estate plan is an excellent way to get financial matters and other assets in order. Additionally, these important documents designate a medical power of attorney, which influences how medical wishes are carried out. Overall, anyone should have a plan.
- Planning is best done (long) beforehand. Just like in creating an estate plan, the earlier the better. It’s recommended for Medicaid planning to take place years in advance. It’s important to be aware that your loved one’s assets might not cover all future medical expenses. Having Medicaid in place can majorly help with unexpected medical situations.
- Trusts add an extra layer of protection. There are many trust options available for protecting various assets. An elder law attorney can help determine what kind of trust best suites your needs.
- Keep up on elder law. It’s a good idea to start planning for long-term care ahead of time. Additionally, you should continually be checking on elder laws and reference the plan. You want to make sure your loved ones still qualify for coverage and other assistance.