Most studies are consistent in showing the 1 in 2 people will need some type of long term care. The type, frequency and percentage of people who will need long term care increases greatly for persons over age 70. The Department of Health and Human Services estimates that 70% of all people over age 65 will need some type of long term care. Additionally, according to a study by the U.S. Census Bureau, it is estimated that approximately 56.7 million Americans are disabled or approximately 19% of the United States population. The number of Americans with disabilities is expected to continue to increase as the U.S. population ages. In light of this, the need for special needs planning is growing.
What is Meant by Public Benefits Planning?
Public benefits planning includes both the preservation of governmental public benefits, as well as the initial eligibility process for such benefits. Planning for public benefits involves more than just creating a special needs trust (SNT) or spending down a client’s assets to accomplish eligibility for public benefits. In order to effectively plan, the attorney and client must discuss the available public benefits and programs and the eligibility requirements for such programs. Since each client’s case is unique, a comprehensive plan to provide for the needs of the client must be developed. This plan should include the qualifications for public benefits, creation of a trust such as a SNT or Irrevocable Trust, and spending down excess resources.
Should You Consider Applying for Public Benefits?
There are many factors that the attorney and client should consider when deciding whether or not to apply for public benefits such as the client’s resources, whether the client has long-term care insurance or life insurance, and other resources. Like with anything else, public benefits are not appropriate for everyone because public benefits such as Medicaid and Supplemental Security Income (“SSI”), have resource and income eligibility guidelines. If the client has ample resources to pay for long-term care, it may not be financially prudent to attempt to qualify for public benefits.
How Will You Pay for Your Long-Term Care?
When an individual requires long-term care in either a nursing home or at home with the assistance of home health care services, due to a disability or advanced age, there are three options for payment of long-term care. An individual may decide to privately pay for long-term care services. However, due to the extraordinary costs of long-term care, private pay is not a realistic option for many people. Another way is through long-term care insurance, if you were fortunate enough to obtain long-term care insurance. Lastly, an individual can use government benefits to cover the cost of long-term care.
In order to protect your assets and preserve your wealth for your family and others, you must have a plan. With proper planning you can age with dignity and a peace of mind while accessing the best care possible. If you or someone you know would like to discuss your long-term care options or create a long-term care plan, please contact our firm.
