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What are the essential elements of long-term care planning?

As you look toward the future, you may realize your need for long-term care. While past generations were able to care for aging family members in their homes, it is increasingly no longer the case.

With the increased need for long-term care has come a greater variety of facilities. When it is time to find the right place, there will likely be options for one that suits your needs.

However, it is also essential to be prepared for long-term care. Here’s what you should know about planning for long-term care and the importance of having a strategy.

How would you like to pay for that?

One of the most significant challenges with long-term care is figuring out funding. You may need long-term care for a couple of years or much longer, so it can be challenging to know how long you need your funds to last.

Depending on your financial situation, Medicaid can be a helpful solution since it can pay for care for as long as you need it. However, if you have significant independent resources, you may not qualify. You may need to consult with a professional about a “spend down” strategy to help you receive the support you need while allocating some of your assets to your loved ones.

What happens when I “spend down”?

Spending down is the process of reallocating your resources so that you can qualify for Medicaid. The Medicaid application process looks at your current assets to determine the level of your need and whether you are eligible for support.

While “spending down” may sound like frivolous spending, more strategy is involved in the process. Typically, a strategic spend down can include moving your assets into an irrevocable trust so that you can reallocate your assets to your loved ones.

Taking the time to create a plan for your long-term care needs can make the transition simpler for you and your loved ones.

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