By the time a person requires long-term care, it can be too late to do the kind of financial planning that maximizes savings. . Too often, people find themselves dealing with a crisis that exposes the gaps and oversights in their planning, making an already difficult situation worse.
The best way to avoid this situation can be to plan long before the need arises. When you have a comprehensive care plan in place, you could discover some valuable benefits.
Let us consider a situation where a person suffers a stroke suddenly. If they have no financial strategies for this type of situation, they may have fewer options on where they receive care and how they pay for it.
On the other hand, someone who has completed care planning may have the funds they need to be more selective in their options.
Consider, too, the fact that advanced planning gives individuals the ability to change their minds.
For instance, many people have opted not to move into a nursing home because of the risks associated with COVID-19. Instead, they may receive care in their own home or move in with a family member. In these situations, having a plan can mean a person has the freedom to adjust their strategies and still be able to afford the care they deserve.
Protecting your assets
One of the most immediate consequences people realize when they are in a position to need long-term care is how vulnerable their assets can be. Without planning, people may have to spend down their savings and sell their property before they qualify for assistance like Medicaid.
When you anticipate the financial demands of long-term care years before you need it, you can capitalize on strategies to preserve your assets. Although there are Medicaid planning strategies where at least one-half of the assets can be preserved, even in a crisis, non-crisis planning may preserve more.
Of course, we typically do not know exactly what we need until we actually need it, making it challenging to appreciate the value of life care planning.
However, people who make arrangements for the unexpected can give individuals and families the protection and flexibility they need to navigate the uncertain, complex events that can be ahead, whatever they may be.