It is common knowledge that medical expenses add up quickly. This is especially true in a long-term care situation.
Preparing for such an eventuality has become a frequent focus of many estate plans. This article will look at two common elements of these strategies.
1. Asset protection and preservation
Medicaid is a complex system that varies from one state to another. Even when people attempt to spend down to meet the requirements for non-exempt assets, there is the chance that they might face penalties or rejections.
In light of this, many people are planning ahead to reduce the stress of obtaining Medicaid benefits. With certain types of long-term care costing over $100,000 per year out of pocket, less stress is usually welcome.
2. Advance directives
Many people also have been including advance directives in their long-term care planning strategies, or, specifically, instruction directives. These are official statements of a person’s desire to withhold or withdraw life-sustaining treatment in one of the following situations:
- Permanent unconsciousness
- Serious, irreversible conditions for which the treatment would be more harmful than helpful
- When the treatment would likely be ineffective
- In the presence of a terminal condition
- When treatment would only prolong imminent death
There are other types of planning as well. These include powers of attorney and proxy directives, both of which could empower someone to make important decisions in the case of another’s incapacity.
Planning for long-term care might also involve revisiting a will, using lifetime gifting strategies or simply researching care options. The details would depend on the type of future that the person in question wants for themselves and for their family.