As we age, the need for long-term care becomes more likely. In Temple, Texas, the cost of such care can quickly drain savings. That’s why including long-term care planning in your estate strategy helps protect your assets and ensures your wishes are respected.
What is long-term care?
Long-term care includes services that meet health or personal care needs over time. These services may include:
- Nursing home care
- Assisted living facilities
- In-home health aides
- Adult day care services
People often need these services when they can no longer perform daily activities due to chronic illness, disability or cognitive impairment.
Medicare generally doesn’t cover long-term care costs, leaving many families unprepared for this significant expense.
Strategies for long-term care in your estate plan
Consider these approaches when planning for potential long-term care needs:
- Long-term care insurance: This insurance can cover a large portion of care costs, protecting your assets.
- Medicaid planning: Structuring your assets to qualify for Medicaid can help cover expenses but requires careful planning due to look-back periods.
- Asset protection trusts: These trusts can shield your assets while potentially allowing you to qualify for Medicaid.
- Hybrid life insurance policies: Some policies combine life insurance with long-term care benefits, offering flexible coverage.
Each strategy has its benefits and considerations. The best approach depends on your health, assets and family situation.
Texas law offers specific protections and options for long-term care planning. The Texas Estates Code provides guidelines for creating trusts and other estate planning tools. The state also has its own Medicaid eligibility rules, which differ from federal standards.
An experienced estate planning attorney in Temple can help you create a plan that aligns with Texas law and meets your specific needs and goals.
