Long term care planning, which may be included by Pennsylvania residents as part of their estate plans, has several factors to consider. First, there is the cost of care, which can be significant. Second, there is the consideration of how long the care might be needed. Lastly, there is the mechanism by which the funds for long term care will be available.
In considering all of these factors, Pennsylvania residents should also review the best tools to use for long term care planning. One option is an irrevocable trust. This type of estate planning instrument was used in the past to hold a large life insurance policy. Now, irrevocable trusts can be used to protect assets as part of long term care planning.
Another option to consider is long term care insurance. Most of our readers are familiar with various types of insurance, such as car, home and health insurance. Long term care insurance is similar, in that the person who purchases the policy is passing on the part of the risk of paying for long term care to an insurance carrier. There are long term care policies, which can be paid for monthly, quarterly or annually. There are also hybrid policies, which involve the deposit of a large sum that may be used for long term care or paid as a death benefit if no such care is needed.
These are just two examples of the mechanisms by which Pennsylvania residents can include long term care planning in their estate plans. At our law firm, we attempt to help our clients consider all of their options, so that they can make the right choice for their own individual circumstances. If you have questions regarding any aspect of long term care planning, it would be beneficial to contact our attorneys to answer your questions and help direct you in the correct path.