In life, we never know what the future will hold. Tomorrow is not guaranteed and the unexpected could be waiting around any corner. This rings especially true when you’re a senior. That’s why it is important to have a plan in place that can help you in various scenarios — such as if you develop dementia, if you need to move into an assisted living facility, if you have a health emergency, or if you stay well and function at a high level for many years to come. At Elder Advisors Law, we help our clients create plans that account for all of these possible scenarios. We also can help people who didn’t make themselves a roadmap in advance make a plan for how they will move forward when crisis strikes. Read on to learn about the difference between pre-planning and crisis planning.
Pre-Planning
A major part of any seniors plan involves deciding if they may need Medicaid and getting things in order to qualify with minimal financial penalization. Medicaid applicants are subject to a 60 month lookback rule, which means that any transfers or gifts of assets made in the 5 years (i.e. 60 months) prior to application can be subject to penalties. Since your assets need to be below a certain threshold to qualify for Medicaid (thus the need for “spenddown”), it is useful to plan in advance for your long term care.
Your pre-planning can involve a number of things:
A Last Will and Testament (“will”): This document will dictate what should happen to your assets if you pass away.
Trusts: These can hold assets on behalf of you or someone else. There are many types of trusts including special needs trusts, funeral trusts, asset protection trusts, income trusts, and more.
Long term care insurance: This can pay for costs associated with long term care that are generally not covered by health insurance.
Crisis Planning
When you’re planning during a crisis, you have less time to prepare and make arrangements, which of course limits your options. You will certainly have less choices when it comes to how you can protect your assets, but with the guidance of an elder law attorney from Elder Advisors Law, it is still possible to make a plan of action that will ease many of your worries. You will use many of the same tools as you would if you were pre-planning but you’ll implement them in different ways that suit your situation.
Whether you’re ready to start preplanning, or facing a crisis and trying to figure out what to do next, the Elder Advisors Law team is here to help. To get started today or to learn more about what we do, please give us a call at (844) 211-1392.
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