Estate planning is never one size fits all. Every individual’s situation is different. As you age, you have many things to consider when it comes to estate planning. You have property, houses, vehicles, and proceeds from retirement accounts. You also have savings accounts and investment portfolios. One significant factor in your estate planning involves long-term care. Checkett, Pauly, Bay & Morgan explains.
What is Long-Term Care?
Long-term care involves expenses for someone’s basic needs over time, sometimes stemming from a medical or health issue. Short-term care would be a trip to the hospital where you stay overnight. Long-term care is about medical care that will be needed for months or years. For example, you or a loved one may have mobility issues, such as arthritis, that require extra help. You might have a nurse or aide come once per week to help with things around the house. Or you may decide to move into assisted living. Either way, it’s essential to take into account these expenses for estate planning purposes.
Insurance
Health insurance policies and government-sponsored health insurance (Medicare) do cover some long-term care expenses. However, you must pay for deductibles and copays. Medicare has limits, and it doesn’t pay for some types of long-term care. In general, long-term care insurance is the primary way to reduce your overall expenses for in-home care services or assisted living. This might leave more for your estate planning.
Assisted Living Costs versus In-Home Care
Genworth Financial’s 2019 Cost of Care Survey illustrates that the median monthly costs of a home health aide is $4,385. Assisted living at a nursing home facility has a median monthly cost of between $7,500 and $8,500. For someone who may already be living on a fixed income, these amounts are not small. They can take a large chunk out of the assets you hope to set aside for estate planning.
Start Early with Estate Planning
The U.S Department of Health & Human Services estimates that one-third of seniors age 65 and older may never need long-term care. The other two-thirds may require long-term care at some point in their lives. No one knows what kind of care or for how long.
That’s why it’s important to plan for your estate early. Many parents start estate planning as soon as they have children. Everyone should account for long-term care in their estate plan before a medical issue arises. Not only is this plan about passing on your wealth to your children, but it’s also about making sure you have enough money for you to take care of yourself.
Estate Planning Attorneys at Checkett, Pauly, Bay & Morgan
Everyone’s financial and family situation is different. The estate planning attorneys at Checkett, Pauly, Bay & Morgan will help you customize a plan that’s tailored to you, your family, and your financial needs. Contact Checkett, Pauly, Bay & Morgan or call if you require estate planning services or assistance. The first consultation is free.
