What to Know about Financial Planning for Long Term Care

As we age, planning for long-term care becomes increasingly important. A recent CBS News article highlights the critical nature of financial and legal preparation for seniors and their families. Here's what you need to know to secure your future and protect your loved ones.

The 5 Essential Documents You Need by 55

Elder law attorney Judith Grimaldi recommends having these crucial documents in place by age 55:

1. Health care proxy
2. Power of attorney for legal and financial decisions
3. Living will for end-of-life choices
4. Last will and testament, including trusts
5. Digital diary (including passwords and online asset information)

These documents ensure that your wishes are respected and your assets are protected, even if you lose the capacity to make decisions.

Real-Life Impact: A Case Study

Santos Macaya, 74, shares his experience of working with an elder care attorney when his wife was diagnosed with dementia. The legal assistance helped him:

• Qualify for Medicaid to cover long-term care costs
• Protect his assets
• Plan for his own future and that of his special needs son

Macaya's story underscores the importance of early planning and seeking professional help.

First Steps for Long-Term Care Planning

1. Consult a financial advisor
2. List all your assets
3. Disclose assets to a trusted individual
4. Update beneficiaries
5. Review and update your plan every five years

Remember, long-term care insurance can be expensive, and not everyone qualifies. Alternative options may include using home equity or downsizing.

Resources Available

While elder law attorneys can be costly, there are free or low-cost clinics available in many areas. The New York City Department for the Aging offers counselors to assist with planning.By taking these steps now, you can ensure peace of mind for yourself and your loved ones in the future. Don't wait – start your long-term care planning today.