One area that you need to think about as you age is how your finances and your estate might be impacted if you have to enter a skilled nursing facility.
Many people don’t realize that this can quickly deplete many estates, which would mean that your loved ones won’t have any type of inheritance.
How does the need for skilled nursing impact your estate plans?
If you’re counting on Medicaid or the VA to cover at least part of your skilled nursing care, you should know that your assets have to be depleted before either of those programs kick in. The only way that you’ll be able to leave an inheritance to your loved ones is to ensure that the assets aren’t diverted to cover your care.
More than two-thirds of people who are at least 65 years of age will need long-term care at some point in their remaining days. Most people need an average of three years of nursing care at the end of their lives, although around 20% of people in this age group will need at least five years of long-term care.
Men are less likely to need long-term care because they have an average lifespan that’s five years shorter than that of women. While only around 60% of men who are 65 or older will need long-term care, roughly 80% of women in that age group will eventually need it.
Should you consider asset protection as part of your future?
Because wealth protection is an important part of long-term care planning, it’s best that you look into your options now. Lookback periods and other factors might impact what choices you have, so getting your affairs in order long before the need for long-term care arises is important.