This type of personal care is usually referred to as Long-Term Care. It is non-medical in nature and involves receiving assistance with basic activities of daily living, such as dressing, eating, getting out of a chair, getting into a car, toileting and more. Whether you want to receive care at home or in a facility, Long-Term Care can be expensive. Neither private health plans nor Medicare pay covers Long-Term Care, so you’ll be personally responsible for the costs unless you’re impoverished and qualify for Medicaid. You may never need this type of care, but 70% of people turning 65 today won’t be so fortunate. That’s why it’s important to prepare for the possibility.

There are several planning strategies to consider.  If you’ve been a good saver, you can set funds aside specifically for Long-Term Care expenses. You can also establish an irrevocable trust to shelter your assets, but you must have the trust in place for at least five years before you need care. Insurance in the form of a dedicated Long-Term Care policy or a hybrid life-Long-Term Care policy can be another option. The younger you are at the time of application, the better your chances of qualifying for coverage.

It’s essential that you plan. Doing nothing can jeopardize the assets you’ve accumulated, the legacy you can leave behind, and the lifestyle and financial security of your spouse.

Johnson Brunetti can help you choose a Long-Term Care planning strategy that’s appropriate for your financial situation. We can talk through your potential need for care, discuss where you’d prefer to receive any care that’s needed, and who you’d like to provide it. We may also suggest that you have a frank discussion with your spouse or family members about the financial and emotional aspects of a possible Long-Term Care event.

We may recommend self-funding your care, purchasing insurance coverage, or establishing a  trust to protect your assets. We’ll also advise you about next steps, whether it’s to suggest how to invest the savings earmarked for care, describe options for suitable insurance coverage, or review the pros and cons of establishing an irrevocable trust. You’ll become knowledgeable about your options so you can make an informed decision about the path that’s best for you. 

No one wants to think about Long-Term Care needs, which is why so many people postpone planning. The problem is, the longer you delay, the more limited your planning options will be. Taking action now allows you to understand the financial challenges that Long-Term Care may present and implement strategies and solutions that are best for your situation.