The best way is with Long Term Care Insurance. If this is not affordable or due to poor health you cannot qualify for Long Term Care Insurance then we must look at other options. There are many options depending on what stage of life you are in. If someone is pre-planning which means they feel confident they will not be in a nursing home within the next five years this is the best case scenario. We have five years to plan and if we use an Irrevocable Trust we can protect virtually all of a person’s assets from long term care costs. If someone believes they will be in a nursing home within the next 1 to 4 years this requires a pre-crisis plan and even with planning a portion of assets may be lost to long term care costs. However the sooner a person plans the more they can usually protect. If someone is already in a nursing home or believes they will be within the next year this requires a crisis plan. Most people in this situation will spend their entire life savings within the first two to four years in a nursing home. If they plan now they may still save 40% to 60% of their assets but the average person will spend about 50% of their assets even with planning. The sooner a person begins to plan the more they can save. For most people in a nursing home if they do not plan immediately they will spend everything they have and impoverish themselves usually within a few short months. They should plan now to save what they can.
I’m in relatively good health now. What can do to I protect my assets from Long Term Care Costs?
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