November is recognized as Long-Term Care Awareness Month in the hope of raising awareness about the need for long-term care planning. As you consider the future, it is essential to incorporate potential healthcare needs into your estate plan, especially as the possibility of requiring long-term care increases with age. The Los Angeles attorneys at Schomer Estate & Wealth Advisors urge you to update your estate plan during Long-Term Care Awareness Month to help provide peace of mind for both you and your loved ones.
What Is Long-Term Care?
Long-term care encompasses a range of services that support individuals who are no longer able to perform daily tasks on their own due to age, illness, or disability. These services can include in-home care, assisted living, or nursing home care. The reality is that many people will need some form of long-term care as they age, and the cost of that care can be overwhelming. Incorporating provisions for long-term care into your estate plan ensures that you are financially and legally prepared for these expenses.
Protect Your Assets from Long-Term Care Costs
Without proper planning, the costs of long-term care can quickly deplete your assets, leaving little to pass on to your loved ones. Medicaid, a government program that helps cover long-term care costs, may be an option for some people; however, Medicaid has strict income and asset limits. If you do not qualify for Medicaid, you could be forced to pay for care out of pocket, which can quickly erode your savings and other assets. By updating your estate plan, you can explore options to protect your assets from long-term care costs. This may include creating an irrevocable trust, which allows you to transfer assets out of your name, protecting them from being counted as part of your estate for Medicaid eligibility purposes. It is important to note that Medicaid has a five-year look-back period, meaning that any transfers made within five years of applying for Medicaid could still be counted as part of your assets.
Ensure Healthcare Directives Reflect Your Current Wishes
A comprehensive estate plan should include healthcare directives, such as a Living Will and a Healthcare Power of Attorney. These documents outline your medical wishes and designate someone to make healthcare decisions on your behalf if you are unable to do so. As your circumstances change, your preferences for medical treatment may also change, particularly when it comes to long-term care options. During Long-Term Care Awareness Month, you should review your healthcare directives to ensure they reflect your current wishes.
Update Your Financial Power of Attorney
In addition to healthcare directives, your estate plan should include a financial power of attorney. This document designates someone to manage your financial affairs if you are unable to do so. If you become incapacitated and require long-term care, it is important to have a trusted individual in place who can handle your finances, including paying for your care and managing your assets. As part of your estate plan review during Long-Term Care Awareness Month, you should ensure that the person named in your financial power of attorney is still the right choice for the role. Additionally, you may want to review the scope of the authority you have granted them to ensure it is sufficient for managing your financial affairs during long-term care.
Consider the Impact of Long-Term Care on Your Beneficiaries
Long-term care expenses can significantly reduce the assets you plan to leave behind for your beneficiaries. By updating your estate plan, you can explore strategies to preserve wealth for your loved ones while still ensuring that your own long-term care needs are met. Additionally, reviewing your estate plan gives you the opportunity to make sure your beneficiary designations are up to date. If you have experienced any major life changes, such as the birth of a new grandchild or the passing of a family member, you may need to revise your designations to reflect your current intentions.
Can We Help You Update Your Estate Plan for Long-Term Care Awareness Month?
For more information, please join us for an upcoming FREE seminar. If you would like to review and revise your estate plan during Long-Term Care Awareness Month, contact the experienced Los Angeles estate planning attorneys at Schomer Estate & Wealth Advisorsby calling (310) 337-7696 to schedule an appointment.
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