If you run out of money, you run out of options…
Pre-Planning is the BEST option. You must pre-plan while you have the capacity to do so. Here are a few things you should know:
1. If you run out of money, you run out of options.
Those that plan in advance have the option to choose the type of care they want in the event of their incapacity. Without planning, someone else chooses for you, often after your money is gone. We never know what will happen. Often, if the money is set aside or protected in advance, you have the options to reside at home and receive good care there, or live in a condo near your kids, or reside in a nice assisted living facility of your choice.
2. You can save / protect a substantial portion of your estate without risking loss to Long Term Care expense.
Rather than just having a goal of saving as much as possible, many people would like to pass some money to the kids, or save the family home, or the farm that has been in the family for generations. With proper advance planning, these things can be saved and passed down as a legacy from you.
3. Protect your family by doing a Pre-Plan for You.
We explain Long Term Care Planning the way we are supposed to look at Property or Life Insurance: You don’t make the decision to buy insurance just on the likelihood or lack of likelihood that something bad will happen. You look at the impact that a significant loss will have on you and your family and your things. You recognize that the insurance premiums are worth the cost for the security of knowing you and your family won’t lose everything if something bad happens to the house.
Pre-Planning for Long Term Care is no different. We know the cost of nursing home care is high and we know that Medicaid makes you spend down a lot of your net worth before it will pay. The fee for this planning is less than the cost of insurance over time, and it has the potential to protect more than just the house. Everyone hopes they will ‘dodge the nursing home bullet,’ and you might. But if you don’t, what impact does that have on you, your family and your net worth? The beauty of pre-planning is that you not only obtain protections for you and your family during your lifetime, but you complete your overall Estate Planning – preserving your legacy for after you are gone. It involves two generations of planning, not just one.
Pre-Planning is a “no-brainer” in terms of cost-benefit analysis!
To read more about Pre-Planning, Estate Planning and other important Elder Law topics, browse our Practice Areas on this site. We have several reports and Consumers’ Guides available to you at no charge. If you have issues that you would like to personally discuss, call our office at 501-843-9014 to arrange a free initial consultation.
The information provided on this blog is intended as general information only for a broad audience. It is not intended as legal advice and should not be acted upon as such. If any reader has questions or concerns about any matter mentioned herein, he/she should contact an Elder Law Attorney or other appropriate professional. If any reader has questions or suggestions about a future topic area that he/she would like to see discussed, please contact the author at email@example.com.