Long Term Care Planning & Pre-Crisis Planning

Long Term Care Estate Planning
Elder Law in the 21st Century

Introduction

Home health agencies are one of the fastest growing franchises in the country. Home care costs approximately $5000 per month. The average costs of care in a Nursing Home in Broward and Palm Beach Counties is $7000-8000 per month.

These concerns barely existed a generation or two ago. A man aged 60 in 1950 had a 16 year life expectancy. A man aged 60 today has a 22 year life expectancy. 6 years may not seem like much but these are the years where issues or mobility or cognition are most likely to appear. Everyone knows someone who uses a walker. Everyone knows someone with Alzheimers or Dementia.

Planning Process for Effective Long Term Care Plans

LEGAL: First, we establish the legal needs. This will include Estate Planning and preparing necessary documents such as a Living Will, Health Care Surrogate and Durable Power of Attorney.

PERSONAL: When called for, we make appropriate referrals to professionals such as accountants, geriatric care managers, patient advocates, placement counselors, financial planners, etc. Based on our 30+ years of experience throughout Broward and Palm Beach Counties, we can help you make sound choices in choosing your allied professionals that Long Term Care Plan will require.

FINANCIAL: Finally, we address the financial concerns of the family and loved one:

• How are we going to pay for Long Term Care?
• Is there insurance or private funds?
• Are public benefits such as Medicare, Medicaid, or Veteran’s Benefits available?
• Should I learn more about Wealth Preservation Planning?
• Do I know about the “new and improved” long term care insurance products?

How do we pay for long term care?

One of the things that concerns people most about long term or nursing home care is how to pay for that care. There are basically five ways that you can pay the cost of a long term or nursing home care:

1. Long Term Care Insurance
   LTC Insurance pays for only 1% of the long term care costs in the U.S. The good news is that there are new options for purchasing long term care insurance. See the section on entitled “From Impoverishment to Empowerment” about exciting new way that the government has given us to pay for long term care.
2. Pay with Your Own Funds – This is the method many people are required to use at first. Unfortunately, with home health care and nursing home bills averaging $7000-$9000 per month in our area, few people can afford to pay this for an extended period of time. Private funds are used by 43% of Americans. Click here for The Proper Way To Self-Insure For Long Term Care Expenses
3. Medicare – This is the national health insurance program primarily for people 65 years of age and older. Medicare provides short term assistance with nursing home costs, but only if you meet the strict qualification rules.
4. Medicaid – Medicaid covers the cost of long term care in our country 47% of the time. This is a federal and state funded and state administered medical benefit program. It can pay for the cost of the nursing home and some assisted living and home care if certain asset and income tests are met. See our section on Medicaid. Medicare covers approximately 7% of the long term care costs. Click here for our review of Medicare.
5. Veteran’s Benefits – and other miscellaneous government programs make up the remaining 2%.
   See our section entitled Non Service Connected Benefits for Seniors, for more information on Veteran’s Benefits and the change in the law that is coming soon.

We have more goals for you!

There comes a time when we all must consider how to best prepare for the Long Term Care of ourselves and family. Our law office, with offices in Coral Springs and Delray Beach, is here to educate and assist you in achieving peace of mind, by setting up and putting into action a Total Long Term Care Estate Plan. In addition to the legal and financial planning we are here:

• To educate and empower you.
• To make you feel comfortable calling our office for information and know that by having planned, all of your questions and calls are included in your fees.
• To be a resource and aid for you in accessing additional resources in the community.
• To advocate for you and your family
• To give you the faith that you have done all that you could for those who gave you so much.

Special Considerations for Baby boomers and young seniors and retirees.

Unless you plan to live with your kids or have them live with you, long term needs planning is a must.

Some interesting baby boomer facts:

• Unlike previous generations, baby boomer have large IRAs and 401ks. Have you considered an IRA trust to protect your kids from creditors and Uncle Sam?
• Better and more versatile Long Term Care Insurance products are available to consider.
• Since there are many more singles, have you put together a plan in case you become ill?
• Admit it. You probably don’t save as much and certainly have a higher standard of living than your parents.
• Very few Baby boomers are veterans and cannot avail themselves of benefits.
• Many baby boomer have multiple marriages and families to consider.

Also of Interest

See our Asset protection section on “The Proper Way To Self-Insure For Long Term Care
Click here for your Special Report on “Hybrid” or “Legacy” Long term care policies.
Click here for your Special Report on using Irrevocable Protection Trusts for asset protection planning. For more information on IRA trusts

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