How to keep assets safe when planning long-term care

On Behalf of | Jan 31, 2024 | Probate And Estate Administration |

Long-term care planning is an important aspect of securing your financial future, especially as you age.

Ensuring that you protect your assets requires strategic thinking and proactive measures.

Leverage insurance options

Investing in long-term care insurance is a wise move to protect your assets. This specialized insurance can cover costs associated with nursing homes, assisted living or in-home care. By securing this type of insurance early, you ensure financial support when you need it the most, reducing the burden on your assets.

Explore government assistance programs

Look into government assistance programs that may help cover long-term care expenses. Medicaid, for instance, provides support for individuals with limited financial resources. Understanding the eligibility criteria and incorporating these programs into your long-term care plan can significantly alleviate financial strain. Pennsylvania law states that your income must be below or at 300% of the current federal benefit rate to qualify for medical assistance for long-term care.

Utilize trusts for asset protection

Creating trusts can be an effective strategy to safeguard your assets. Revocable living trusts, in particular, allow you to retain control over your assets during your lifetime while facilitating a seamless transfer to beneficiaries upon your passing. This approach ensures that the court will distribute your assets according to your wishes.

Implement advanced health care directives

Establishing advanced health care directives, such as a durable power of attorney for health care and a living will, empowers trusted individuals to make decisions on your behalf in case you are unable to do so. By clearly outlining your preferences for medical care, you maintain control over potential health-related expenditures and prevent unnecessary financial strain.

Regularly review and update your plan

Life is dynamic, and so should be your long-term care plan. Regularly review and update your financial strategies, taking into account changes in your health, family structure or financial status. This proactive approach ensures that your plan remains relevant and effective throughout the various stages of your life.

Responsible people take steps to secure their assets during long-term care. In this way, you can safeguard your assets and enjoy peace of mind as you navigate the complexities of aging.