If you are age 65 or older, there is a reasonable probability that you will need some skilled nursing care. It can be short-term while you’re receiving rehabilitation after surgery or a stroke. It could also be a more permanent placement so that you can receive around-the-clock care unavailable in a home setting.
There are a lot of opinions about nursing homes, but there is one thing that’s a fact: skilled nursing care costs a lot of money.
How to pay for long-term care
The average monthly cost of a nursing home in Connecticut is $13,764 per month. After a few months, that can significantly dent a retiree’s assets. Therefore, it’s essential to incorporate long-term care into your estate plan. Doing so can help safeguard your financial legacy and protect your family from undue stress.
One of your first steps is ensuring you have advance healthcare directives and a durable power of attorney. These legal documents outline your wishes for end-of-life care and give a trusted individual the authority to manage your financial affairs if you can’t.
You may also want to start exploring your options for long-term care insurance. While premiums can be expensive, typically purchasing a policy when you’re younger ensures lower rates. There are different types of long-term insurance available. Some policies offer dual benefits by combining life insurance with long-term coverage, thus providing for you and your heirs.
Trusts are another effective way to protect your assets while planning for long-term care. Medicaid planning trusts can allow you to qualify for government assistance without completely spending down your estate to meet the asset threshold. Gifting is another way to ensure your loved ones receive their inheritance. However, it’s imperative to be aware that Connecticut has a 5-year lookback period to ensure the assets weren’t transferred as a way to defraud the government.
Before making any decisions regarding long-term care planning, you will want to discuss your goals with someone who can help you make the best choice and ensure that your estate plan is legally sound.