This old Rodgers & Hammerstein song begins with “When you walk through a storm” and ends with “You’ll Never Walk Alone.”
In our complex world, the necessary care associated with growing old can be the storm, and never walking alone can be synonymous with long-term care.
As we age, long-term health care is an essential consideration.
However, the costs associated with long-term care can be staggering.
The ultimate goal is to receive the best care without depleting savings. To achieve this, a solid financial plan must be in place.
What Long-Term Care Entails
First, it is necessary to understand what long-term health care involves.
It includes services designed to help individuals with chronic illnesses, disabilities, or cognitive impairments who are unable to perform everyday activities independently.
These services can help people live independently and safely.
Some of the options are nursing homes, assisted living facilities, and in-home care.
All three of these options have advantages, challenges, financial considerations, and legal aspects to address.
Financing
The costs of long-term care can be staggering. Your obvious goal is to make sure that you or your family member receives the best care without depleting any savings.
I’ve put together some key steps to financially preparing for long-term care.
Long-Term Care Insurance:
This is probably the most effective but also the most expensive way to cover the costs of long-term care services. The earlier you invest the more affordable the premiums are.
Government Programs:
Programs like Medicaid can provide some financial assistance. But the requirements vary by state and are based on income and assets. We’re here to help you in understanding this option.
Creating a Financial Plan:
You should create a plan with a budget for long-term care expenses. Sometimes clients set up separate savings accounts or investment portfolios designed for long-term care. Here’s where it is essential to consult with your financial advisor as well as this office.
Review Estate Planning:
Make sure you have established a durable power of attorney with us, and also a living will with us to help make important decisions when you’re unable to.
Long-Term Care Options
Nursing Homes:
This option provides the most comprehensive level of care. It includes 24-hour supervision, meals, assistance with everyday activities, skilled nursing care, and rehabilitation services.
Assisted Living Facilities:
These are more independent than nursing homes. The resident that is here just needs some daily assistance with bathing, dressing and medication management but wishes to maintain some degree of independence. The facility often includes communal dining, social activities, and various amenities.
In-home Health Care:
This allows the individuals to receive some personal care in the comfort of their own homes. The range of assistance can be significant. It can be from those who need help with all their daily activities but prefer to remain at home to those who just need part-time help with certain activities.
Legal Aspects of Long-Term Care Planning
You must never undervalue the legal side of long-term care planning. These are the things that you will need to know about:
Estate Planning
To ensure that your assets are managed according to your wishes, you need to have Kabb Law prepare a comprehensive estate plan, which includes a will, trust, and power of attorney.
Guardianship Designation:
Designating an individual as a guardian in the event of incapacity will ensure that someone is legally authorized to make decisions on your behalf.
Long-term Care Contracts:
These are simple contracts that outline the terms of care and compensation to family members or caregivers.
Asset Protection Strategies:
Irrevocable trusts are a good example of this, as they can help safeguard your assets and eligibility for some government benefits.
WHERE KABB LAW COMES IN:
Because long-term care planning is complex and because there are potential legal and financial implications, Kabb Law’s guidance is necessary. We and your financial advisor can create a long-term care plan that fits your financial abilities.
Just as the old song says, “You’ll Never Walk Alone,” when you are walking with Kabb Law.
Call Rachel Kabb Effron today at 216-991-5222 to learn more about long-term care.
