As parents get older, the need for care beyond what family members can provide becomes necessary. The Department of Health and Human Services (DHS) claims that approximately 70 percent of retirees will require long-term care.
Costly care
Nursing homes are a common and costly option. Residing in a facility can cost five to six figures per year. Medicare can subsidize the expenses, yet it doesn’t come close to the entire bill. Preparation is paramount to ensure the protection of crucial assets and cherished items.
Securing assets is paramount. Programs exist that can cover expenses for long-term care. However, they are also based on need. Sometimes, liens are attached to significant assets, including a residential dwelling and a retirement account.
Additional options
Long-term care insurance has multiple benefits. Comprehensive coverage and cover all needs without putting assets at risk while covering nursing home expenses. Options range from home health aides to permanent residency in a facility, depending on the specific need of elderly parents. However, long-term care is expensive, particularly for those wanting to explore that option later in life.
Assets in irrevocable trusts take away ownership and put a third-party trustee in control of managing based on the parent’s specific wishes. Everything is set in stone and cannot be changed.
Life estates are legal entities with the same benefits as an irrevocable trust. Essentially, it holds real estate assets, specifically the residential home. The loved one remains in the dwelling as a lifetime tenant. They have the right of possession but not the right of ownership.
Growing older becomes a little easier when the future, regardless of its length, is more secure as parents transition to the next chapter in their lives.