Planning For Long-Term Care
Every day, from 2011 until 2030, 10,000 baby boomers will turn 65. 70% of them will need some form of long-term care during their lifetime. For those 70% requiring long-term care, the average total cost is estimated at $266,000. About 25% of households have no retirement savings at all, and the median savings for those who do is less than $75,000. Thoughtful estate planning is now required simply to prevent insolvency for the individual and their families.
Long-term care is generally not considered acute medical care, but rather assistance with the basic personal tasks of everyday life. There are six basic Activities of Daily Life (ADLs) which include bathing, dressing, eating, toileting, transferring, and continence. ADLs are used primarily for determining needs with respect to government programs or triggering insurance coverage. However, there are many more everyday tasks where individuals require assistance. Assistance is often provided by family members, in-home support services, or institutional facilities (i.e. adult daycare, assisted living, skilled nursing homes, etc).
Crisis Planning
A crisis situation arises when an individual requires or is about to require long-term care and whose options to pay for this care are limited. Often times the individual will have little cash or other assets that can be sold quickly. Their primary asset is their home which nursing homes may suggest they sell to raise the money needed to pay for the long-term care. Consulting with an attorney may allow the individual to save their home and preserve their other assets by qualifying for Medicaid assistance.
Planning in Advance
Creating an estate plan that considers the cost of long-term care can save greater assets from being used up by long-term care costs. Whether the client plans to private pay, use long-term care insurance, or qualify for Medicaid discussing these options with an attorney can help ensure that funds will be available when the need arises.
Frequently Asked Questions About Long-Term Planning
Why should I think about long-term care and estate planning at the same time?
I qualified for Medicare, why should I think about long-term care planning?
What are the eligibility rules for Medicaid?
I've been told that I need to spend down all my assets before I qualify for Medicaid.
Can I gift money to my children and grandchildren so that I will qualify for Medicaid sooner?
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Steve presented at Allen's senior center. He did a great job of communicating so effectively on a sensitive topic. He listened intently to all question and showed a sincere care for each attendee. I'm recommending him to all my friends who have estate planning or will needs.
Atty. Holman was very thorough and answered all of our questions promptly. Most of the questions were via email, but he also spent time on the phone for the initial consultation, discussing our needs and reviewing documents after they were prepared. We never felt rushed or pressured. My wife and I felt completely comfortable and confident in his handling of our affairs. We highly recommend him !!
Steve's level of professionalism and care is outstanding. Steve has participated in numerous community events and each time, he blesses his audience.
Steve Holman did an outstanding job explaining complex estate matters to me and my 91 year old mother. He also helped us think through some sensitive non-legal, non-financial "elder matters" (like planning for a dignified exit and making sure her wishes were clear and codified). He is bright, energetic and has the perfect demeanor for constructively interacting with older folks. Hire him!