Have you started thinking about your plans for long-term care? Do you know how you want to be cared for if you are unable to take care of yourself? For example, will you go to a nursing home or have an in-home care aide? How will the services be paid for?
All these are issues addressed in a long-term care plan and with this plan, you can remain in control of what happens to you later in life. However, the benefits of long-term care plans don’t stop there. When created and executed with professional help, a long-term care plan can help protect your assets.
Asset protection and long-term care planning
To receive Medicaid, you can’t have a high income or assets. If you do, you won’t qualify for this government assistance until you spend the assets you have. Sometimes, this includes selling your assets to cover the care you need.
With long-term care planning, you can eliminate this problem by knowing how much you can afford without having to touch your existing assets. This includes things like Medicaid planning, setting up a trust and giving away assets prior to the look-back period.
Understanding your financial position
A long-term care plan will look at your current financial situation and give you a chance to put protections in place for your assets to pass to your loved ones. One protection you can use is an irrevocable trust, which takes the asset out of your estate and puts it in the ownership of a third party until the time when it is distributed to your named beneficiary.
Understanding long-term care planning
As you can see, there are several factors that must be considered when it comes to long-term care planning. Working with a professional will help you make the most of this process.