Planning for Long-Term Care. The TGQ Law Firm

The TGQ Law Firm: Securing Your Future With Long-Term Care Planning

You’re fiercely independent and expect to stay that way in your twilight years, but reality paints a different picture. Studies have found that up to 70% of people aged 65 and up will need long-term care at some point. The odds are good that you will, too.

Long-term care planning can better prepare you for the financial, health-related, and legal challenges that come with aging. Below, you can learn what planning for long-term care involves.

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Long-Term Care: A Lifeline for the Elderly

What is long-term care? Long-term care is a means of providing for a senior’s needs when they can no longer care for themselves. For example, a long-term care assistant might help a senior bathe, get dressed, and transition into and out of bed. Some also provide nursing services such as administering medications and tending to wounds.

When you think of long-term care, nursing homes and assisted living facilities might spring to mind. While these are viable options, you might prefer in-home care. In-home care provides supplemental assistance while still allowing you to maintain your independence. If all you need is a small helping hand, it could be a good pick.

Paying the Astronomical Cost of Long-Term Care

Not everyone can afford to pay cash for long-term care. Assisted living facilities can cost upward of $5,000 per month, and nursing homes are even costlier at an average of $85,000 a year for a semi-private room. If you’re unsure how you’ll afford it, long-term care insurance could be the solution.

LTC insurance pays for long-term care that Medicare won’t cover. It works similarly to health insurance. You pay a premium each month, and then when you need long-term care, your insurance covers it.

However, certain health conditions might disqualify you from LTC insurance, and the premiums can be eye-poppingly expensive. Discussing your health and financial goals with your family before purchasing a plan is smart.

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Healthcare Proxies: A Voice for Those Who Cannot Speak for Themselves

You’re of sound mind now, but that may not always be the case. What happens if you’re incapacitated and can’t make medical decisions? This is where a healthcare proxy comes in. Your proxy (usually a trusted family member) can make medical decisions that align with your wishes when you’re unable to speak for yourself.

It’s important to create an advance care directive now while you’re still able to do so. In your directive, provide clear instructions for how you would want your healthcare proxy to act. For example, you might specify whether or not you want doctors to use life-saving measures like ventilators and CPR.

Will Medicaid Help You Pay for Long-Term Care?

LTC insurance is an option if you can’t afford to pay out of pocket for long-term care, but it’s not right for everyone. Medicaid is a government program that pays for nursing facility care. It doesn’t cover room and board at assisted living facilities. However, many states offer Medicaid waiver programs (sometimes called Home and Community-Based Services waivers) aimed at defraying the cost of ALFs.

The only downside is that you’ll need to meet asset requirements to qualify. If you have too much money, Medicaid will deny you. You could either spend down your assets to meet the requirements or place assets in a trust. The latter option allows you to preserve assets for your family while still qualifying for LTC assistance.

The TGQ Law Firm: A Comprehensive Approach to Family Care Planning

Long-term care planning can be stressful, especially if you’re unsure where you’ll get the money to pay for a facility. If you need guidance, reach out to The TGQ Law Firm. Our team can help your family develop a rock-solid long-term care plan that will safeguard you and your assets throughout your golden years.

Whether you need guidance on creating your will or placing assets in a trust to qualify for Medicaid, our firm is here to help. We’ve proudly helped clients in Ann Arbor and beyond with planning for long-term care for over 10 years. For a consultation with an Ann Arbor, Michigan estate planning attorney, call (734) 707-3232.

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