When most people think about starting an estate plan, they may make the mistake of thinking that the plan will only address what happens to their assets after they die. But, the reality is that comprehensive estate plans can take into account a wide variety of potential eventualities. Long term care planning, for instance, can be a crucial part of an estate plan.
However, including long term care planning in your estate plan can be a daunting task, as a recent article noted. The biggest problem? The cost of long term care. As the recent article pointed out, the average annual cost for a room in a nursing home in America is currently around $97,500, which is a breathtaking amount for most people. In Pennsylvania, the average annual cost of nursing home care may even be higher -- over $120,000 in 2018.
But, for those who approach estate planning from the perspective of using the process to get their financial affairs in order, they might find alternative options for long term care, such continuing care retirement community or long term care insurance. They might begin saving to cover these costs, especially if they address the issue early in life. A simple designated savings account for these types of costs may be sufficient for some people. For others, it may make more financial sense to look into a move to a continuing care retirement community or the benefits of purchasing a long-term care insurance policy.
There are many different dynamics for Pennsylvania residents to consider when they begin the estate planning process, including long term care planning; but one of the most important factors is where to allocate resources. As the recent article pointed out, it can be well worth it in a person's later years of life to have saved money for long-term care ahead of time.
Source: Yahoo!, "The Impossible Reality of Long-Term Care Planning," Jan. 2, 2018