Long-term care costs are one of the leading causes of going broke for persons of retirement age.
You can work hard all your life, save your money, plan your future, and then lose it all when you need care that costs $6,000.00 - $10,000.00 a month or more.
I've seen this happen time and time again. Even people with $1 million in assets or more go broke at times from these huge monthly costs.
Here are a few things you should think about for future planning:
If you're married, do you have the right estate plan? If you are in Washington, and you are married, you almost certainly need a Will-based estate plan with spousal Supplemental Needs Trusts. If you already have a Revocable Living Trust, you should immediately have it reviewed by an elder law attorney. If you want to know more about why a revocable living trust can be destructive for a couple in Washington, you can also attend my free webinar on trusts here on January 11 or watch the video posted after that.
If you're age 18 or older, you should already have Powers of Attorney. Those documents should be thorough and cover any situations now or that may arise in the future so that you are deciding who will help you and what you want them to do on your behalf. Waiting until you are older could be devastating if you have an accident or illness at a younger age and have not prepared. If you're wondering what should be in a good Power of Attorney, I will be discussing it in several of our Winter Webinars. You can view those topics here. I am also happy to review any documents you already have or meet with you to discuss what you might need and why. You can contact us to make an appointment for a free consultation.
If you are not married, you may still want to consider whether you should have a will-based or trust-based plan. If you are younger, you might want to consider whether future planning for possible long-term care and medical costs is appropriate now. Single persons have far fewer options than married persons do when it comes to Medicaid and VA planning later in life. The earlier you start planning for those contingencies, the better. I've talked briefly about this before in the blog, and will cover it more in depth in the Winter Webinar series on December 14. You can RSVP for that here or find the video posted in the same place after the Webinar is over.
Long-term care costs are huge and they can wipe out an estate, but you can do things to prepare for them and prevent the asset loss. Contact our office today if you have more questions!