This article was written for our sponsor NC Planning .
It is almost impossible to predict how much care you or a loved one will need. However, with the natural course of aging, there are certain health problems, lifestyles, and extenuating circumstances that make long-term care a necessity for many people.
For some, this care can be as minimal as having a helper helping them with cooking and cleaning at home. However, others may need to move to a retirement home or receive full-time personal care.
Planning ahead can help alleviate the stress and financial problems that come with long-term care.
"Think about it as soon as you can, especially with your financial planning in mind. Many of my customers between 50 and 60 ask me: "Can I withdraw at any time?" Do I have enough to retire? "Says Lauren Maxie, attorney and partner at NC Planning, a Raleigh-based estate planning firm." This is where a financial advisor comes in. For us, we're really starting with the 50-year-olds. Often times you just talk about it, look at their budget, and when they have enough money to pay for the care, ask them what it looks like too. How is it for her Pay for home care or pay for care in a community? "
For Maxie, the earlier these conversations take place, the better. Financial planning in advance offers more options in the future, especially since most people do not know what level of care they will have.
Since no one can predict which medical or personal problems will arise in the future, planning at least five years in advance can provide protection in the event of an emergency.
"A very common concern we hear is that when people have long-term care and all the money is being spent on it, people worry. What will happen to your spouse? Plan proactively, you can implement advanced donation strategies with wealth protection. Trust, and it's a very common tool in the toolbox, "said Maxie. You can move assets out of the way. Names and you lose some control of those assets, but the big advantage is that once they stop during that time on your behalf, it depends what kind of care you are seeking. So they are essentially no longer yours. Strengths, so applying for these on-demand programs is not an accounting resource. "
"They have assets in your name for three to five years. So if you act proactively, you can essentially reduce your net worth while not in crisis mode, "he concluded. "You can maximize these benefits if necessary. "
Because of how Medicaid works, many people find that they have too much income or assets to qualify even though they need financial assistance for long-term care. This strategy enables people who may not have been eligible for Medicaid or the Veteran's Pension to be eligible for benefits. Again, planning ahead is essential as assets must be outside of a person's name for a period of time before they are eligible.
A skilled senior attorney can assess your income and assets, and create wills, trusts, estate plans, and more to help alleviate the financial stress of planning. As people's situation is constantly changing, creating a long-term plan keeps evolving, and building a relationship with an attorney will help you become comfortable with creating that strategy.
"I've worked with a couple and the man had an early onset of Alzheimer's disease. He was in his early sixties but needed extended care. But they only had about $ 400,000 in cash, "said Maxie. "They had their house and other things there, but we knew they would run out of money to care for them because it can be very expensive. By planning ahead, we were able to save ages like her for his wife. At the same time, I want to make it possible for him to be entitled to state benefits sooner without having to spend everything to look after him. "
Maxie also recommends having these important conversations with your lawyer and family to start planning, especially when you are young, not just for yourself but for those around you as well.
"You don't want your family to guess what your wishes are. What can we do to communicate the emotional desires and longings, but also the financial aspect of your asset structure? some of the legal tools in the toolkit that we could start now? Then we can prepare for success there, "said Moxie. "We talk a lot with customers about simply talking to their family and saying, 'If something happens, these are my wishes. "There is a lot of excitement and sometimes guilt about making decisions about moving someone or where, and if you can be proactive in this conversation you can really avoid some of these problems."
This article was written for our sponsor NC Planning .
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