Long Term Care Planning

Long Term Care Planning involves preparing for future care needs well in advance of requiring long-term care services. It is a proactive planning approach that considers a broad spectrum of strategies such as establishing asset protection trusts, creating healthcare directives, and purchasing long-term care insurance. There may be several objectives in Long Term Care Planning:

1. Preserving Financial Security: Long Term Care Planning aims to safeguard assets by preparing for the high costs of future long-term care services. If an individual requires long-term care, their assets are protected for the benefit of their spouse and children (or other loved ones) rather than being spent down on their costs of care.
2. Maintaining Independence and Control: We want to empower individuals to make choices about their future care preferences and have control over their living arrangements and healthcare decisions.
3. Ensuring Quality Care: Long Term Care Planning involves evaluating and selecting suitable options for long-term care services, including home care, assisted living facilities, nursing homes, or other community-based services. The goal is to access appropriate care that meets the individual’s needs – we want their care options to be their choice, not someone else’s.
4. Relieving Burden on Family: Planning proactively can alleviate the stress and burden placed on family members. Individuals can establish a clear plan, which relieves loved ones from making difficult decisions during times of crisis. This ensures a smooth transition when care is needed.
5. Using Available Resources: Long Term Care Planning aims to make the best use of available resources, including government programs such as Medicaid, private insurance coverage, personal savings, and investments to cover long-term care costs. We want to maximize available benefits while minimizing out-of-pocket expenses to the individual and their family.

What is the Difference Between Long Term Care Planning and Crisis Medicaid Planning?

While Long Term Care Planning is a proactive approach, Crisis Medicaid Planning focuses on addressing urgent situations where an individual suddenly requires long-term nursing care and faces immediate financial challenges. The goal in Crisis Medicaid Planning is to qualify the individual for Medicaid benefits as soon as possible. Crisis Medicaid Planning involves immediate action to avoid exhausting assets on nursing home costs. We use similar planning techniques in Long Term Care Planning, which can often result in immediate Medicaid eligibility upon entering a nursing home. This avoids the stress and urgency that can come with Crisis Medicaid Planning.

Who Should Consider Long-Term Care Planning?

The U.S. Department of Health and Human Services estimates that 52% of individuals turning 65 will need some form of long-term care services during their life, with a portion of them eventually residing in a nursing home or personal care home. Therefore, Long-Term Care Planning is essential for EVERYONE. It is particularly important if you:

1. Are approaching retirement age or are a recent retiree;
2. Have a disabled child, particularly if you are the primary caregiver for your child;
3. Have a chronic health condition or have recently been diagnosed with a progressive disease such as dementia;
4. Own a business; or
5. Are interested in aging in place or receiving future care in their own home.

Long Term Care Planning is a proactive, comprehensive approach that prepares for possible future long-term care needs, while preserving assets for loved ones and ensuring quality care. The attorneys at Ayres Presser Elder Law understand the importance of a well-rounded plan. Contact our office to schedule a consultation to discuss your Long-Term Care Planning goals.