Some Texas residents may already know that there is more to an estate plan than providing for family after death. Estate planning may also be used to plan for how a person will be cared for toward the end of life. This is most often referred to as long-term care.
Many people in Texas have the mistaken impression that Medicare will cover the expenses associated with long-term care. There may be a limited amount of these expenses covered by Medicare now, but it is certainly not enough to be taken care of properly. In addition, there is no guarantee that program will have funding by the time it is needed. Therefore, it will be necessary to explore other options when planning for this eventuality.
To get an idea of the costs associated with long-term care, semi-private to private rooms in nursing homes average between $75,405 and $83,950 per year. It costs an average of $44,479 to have an aide come to a person's home for the year. Depending on the individual, this type of care could be needed for several years.
There are two primary ways to prepare for long-term care. The first is through long-term care insurance, and the second is to save money for that purpose. It will be up to each individual to decide which option will work best for his or her financial situation, and either approach can be expensive. Through early and diligent estate planning, it is possible to successfully address these long range issues in a manner that takes care of personal needs while also considering the financial impact involved.
Source: Orange County Breeze, Plan for long-term care costs, Sean Payne, Oct. 31, 2013