People often overlook long-term care relative to estate planning. But it is a crucial aspect to consider. The cost of care can be substantial, and without proper planning, it can deplete your assets and leave your loved ones financially burdened. This blog post will discuss the importance of talking to your estate planning attorney about long-term care planning and explore various options to help you cover the costs of your care if needed.
The Importance of Long-Term Care Planning
Long-term care can include a wide range of services, such as in-home care, assisted living, skilled nursing facilities, and more. The costs associated with these services can vary significantly, but they often exceed what Medicare, Medi-Cal or other health insurance plans cover. Without adequate planning, you may be forced to rely on your savings or sell assets to pay for care.
Consulting with Your Estate Planning Attorney
Your estate planning attorney, in coordination with a knowledgable long term care financial advisor, can play a vital role in helping you navigate the complexities of long-term care planning. They can assess your financial situation, identify potential risks, and recommend strategies to protect your assets. By working closely with your attorney and financial advisor, you can develop a comprehensive plan that aligns with your goals and needs.
Coordinating with a Financial Planner
In addition to your estate planning attorney, consulting with a financial planner can be beneficial. A financial planner can provide expert advice on investment strategies, retirement planning, and risk management. They can help you evaluate your financial resources and determine how much you can afford to allocate towards long-term care.
Long-Term Care Planning Options
Several options exist to help you cover the costs of long-term care. Here are some possibilities to discuss with your estate planning attorney and financial planner:
- VA Benefits: If you or your spouse are veterans, you may be eligible for VA benefits to help pay for long-term care. The VA offers various programs, including the Aid and Attendance benefit and the Housebound Program.
- Long-Term Care Insurance: Long-term care insurance policies can provide financial protection by covering a portion of the costs associated with long-term care services. However, it’s important to carefully consider the terms and conditions of these policies, as they can be complex and expensive.
- Insurance Based Financial Products. There are new financial products now available on the market.
- Medicaid: Medicaid is a government-funded health insurance program that can help cover the costs of long-term care for individuals who meet certain eligibility requirements. However, qualifying for Medicaid can be challenging, and it often involves asset limitations.
- Self-Funding: If you have sufficient financial resources, you may be able to self-fund your long-term care. This option involves setting aside funds in a separate account to cover future care costs.
Other Long-Term Care Strategies
In addition to the options mentioned above, there are other strategies you can consider to help pay for long-term care:
- Reverse Mortgages: A reverse mortgage can provide access to cash from your home equity, which can be used to help cover long-term care costs. However, it’s important to understand the potential risks and limitations associated with reverse mortgages.
- Life Insurance: Certain types of life insurance policies can be used to pay for long-term care. For example, a life insurance policy with a long-term care rider can provide benefits to cover care costs while you are still living.
By having open and honest conversations with your estate planning attorney and financial planner, you can develop a comprehensive plan to address your long-term care needs. Remember, planning ahead can provide peace of mind and help protect your assets for future generations.
Estate Planning for the Future 
Planning ahead is essential. Contact your elder law attorney who can guide you and give you specific advice regarding your estate plan. A California Health Care Directive should be prepared, with immediate powers, which authorizes someone to make medical decisions on your partner’s behalf if you become unable to do so. Your Revocable Living Trust and Financial Durable Power of Attorney should be up to date, preferably with immediate powers, and should have provisions for your care should you become incapacitated or suffer from dementia.
Financial Solutions: Addressing Long-Term Care Costs
Researching long-term care financial solutions early can help offset future costs. Additionally, exploring government assistance programs and veteran’s benefits (if applicable) can provide additional support.
About Walnut Creek Elder Law in Walnut Creek, California
Michael J. Young is an experienced elder law, estate planning and asset protection planning attorney in Walnut Creek, CA. Mr. Young advises his clients regarding their estate planning needs with an emphasis on asset protection, Medi-Cal qualification, and preservation of assets for various levels of their care as they get older. Mr. Young’s journey into elder law began when his mother suffered from an acute injury that required her to be in a skilled nursing facility. He is co-author of the book, Don’t Go Broke in A Nursing Home and is the author of the “Alzheimer’s Legal Survival Guide.” Mr. Young presents monthly workshops in Walnut Creek regarding estate planning, asset protection, and Medi-Cal planning. He has helped many clients over the years successfully qualify for Medi-Cal and has protected their assets from state recovery. Call today to schedule a consultation (925) 256-0298.