Essentials for An LTC Self-Funding Strategy

When surveys indicate less than 20% of Americans have addressed their Long-Term Care Planning needs, most of our country's retirees do not have a PLAN.   The default, of course, is self-funding that cost, but that is not a PLAN!   The choice of Self-Funding future LTC needs is significant, and that decision cannot be considered viable planning until various steps are taken.  The first step is to ensure you understand the planning risk is by quantifying and documenting the projected cost of care with a HALO Assessment.     

The next step if you are considering a self-funding strategy for future LTC needs is having the proper legal framework in place to avoid “crisis-planning” when care is needed should they be incapacitated or incapable of making decisions.

1)  Do you have the drafted and executed legal documents to support this planning?

• Durable Power of Attorney (DPOA)
• Healthcare Surrogate
• Living Will (with DNR)
• Pre-Need Guardianship
• Will / Trust – Updated or revised in the last five years 
• Final Arrangement Instructions 
• Asset Protection Trust
• Other documents recommended by your attorney

2)  Who is the person specified as your DPOA in the event of their incapacitation? 

3)  Has the DPOA-specified formally accepted the role? 

Finally,  in the event of incapacitation, and with a legal framework, your strategy for Self-Funding will require instruction on an orderly liquidation of specific or allocated accounts to pay for their care when needed, as documented below.  

It's actually very simple:  The essentials for Self-Funding LTC plan MUST be in place to have a viable plan or an acceptable alternative to insurance-based LTC Planning.