In planning for your financial and healthcare future, several issues must be considered. Start by analyzing your current situation and determining your goals for the future. Below are a few things to contemplate:
Who are you planning for?
- Yourself, your spouse, your children/grandchildren, your parents, others?
- Are the legal documents for the individuals in your plan in order? (Financial and Medical Powers of Attorney, Advance Directive, Trusts, Wills, etc?)
- If your plan includes others, are any of the individuals underaged, have special needs, substance abuse issues, money-management challenges, medical or mental challenges, etc.?
Do you or individuals in your plan have long-term-care insurance (“LTC”)?
- If so, what are the policy requirements that must be satisfied for the LTC to provide financial support and to reimburse for healthcare assistance for a facility (up to your daily limit)?
- If not, should a LTC policy be purchased?
- Alternatively, do you plan to self-insure for your LTC needs?
Are you or individuals in your plan eligible for veteran benefits?
- Did you or any of the individuals in your plan serve in the military?
Will you or individuals in your plan possibly need Medicaid?
Once you start planning for the future, you may wish to consult with an attorney. At the initial meeting, he or she will ask whether you have Powers of Attorney (financial and medical). [1] These are the most important documents while you are living.
Your attorney may also give you a workbook that will assist you in organizing your assets. The following are some questions that may be asked when completing your workbook:
- How each of your bank accounts, real property, and any of your other assets are titled is very important in determining what transfers, if any, happen automatically upon death. (Your attorney will further discuss with you the pros and cons of how you have titled your accounts for all of your current assets and what changes, if any, you want to consider.)
- Do you have beneficiaries and/or contingent beneficiaries for retirement accounts, life insurance, etc.?
- Do you have long-term care insurance? [2]
- Did you or your spouse serve in the military? [3]
- Another consideration in determining your path is whether you may need Medicaid [4] in the future.
When you analyze your assets, you and your attorney will have a better idea of what your paths may be and how to accomplish your goals. You and your attorney can discuss options “legal documents”: wills, trusts (revocable, irrevocable), special needs trusts, pooled trusts, etc. based on your goals and your beneficiaries’ situations.
In June, Part 2 of this article we will highlight some of the legal documents mentioned in this article in more detail and how they may fit into planning for your future.
Senior Law Solutions, LLC offers a variety of opportunities to assist individuals and their families with aspects of Elder Law Care, Estate Planning, and Life Care Planning with individualized plans. If you have questions or want to learn more, visit www.seniorls.com or call 334. 758.9400.
Alabama State Bar Requires the Following: “No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.” Responsible Attorney: Anne Elizabeth McGowin.
[1]Powers of Attorney-See June 2023 Boom Article
[2] Paying for Aging in Place Support: Part 1. Long-Term Care Insurance-See April 2024 Boom Article
[3] Veteran Service Office. See February 2024 Boom Article
[4] Paying for Aging in Place Support: Part 2. Medicaid-See June 2024 Boom Article