Have CAREfidence In Your Planning Goals

If there are insufficient assets to cover the potential cost of care, there must be a determination of whether siblings or adult children should become part of the discussion.  Are they willing/able to take on the physical, financial, or emotional responsibility of being a caregiver?   Generally, it becomes clear how known and unknown events make this a potentially disastrous planning option.

  If insufficient assets cover the potential liability, plans should be set in motion to qualify for Medicaid should care be needed.  This would include recognizing that "Aging In Place" is unlikely and a "spend-down" of assets - based on the state of domicile - will be necessary to become eligible.  An estate planning or elder law attorney should be consulted to draft necessary documents and address any legal ramifications.

  You might think "self-funding" is a logical way to cover potential LTC expenses not covered by Medicare, your Medigap plan, or health insurance.  However, regardless of the size of your asset base, there are many reasons why self-funding may not be your best strategy.  If self-funding remains your intention for future care needs, the essentials of Self-Funding LTC should be considered to make it viable planning.

LTC risk can also be mitigated by combining existing resources with strategies designed to reduce the financial impact of a future care event. Insurance solutions efficiently enhance the self-funding default by reallocating or repositioning a portion of existing resources to transfer some or all of the potential future liability.  The objective is not simply to buy insurance, but to determine how much risk should remain on your balance sheet, how much should be transferred, and how those decisions align with your overall comprehensive financial planning.