As you get older, there may come a time when you realize that there is the possibility of needing to live in assisted accommodation in the future. You may simply envision a point in which you are less independent and want the security of a nursing home, or you may have been diagnosed with a condition that will eventually necessitate assisted living. Many people are primarily concerned about not wanting to be dependent on their loved ones, so want to be proactive in the approach to ensuring that they are financially prepared for assisted living.
Elder law is a legal practice the specializes in issues faced by aging people. This includes planning for long-term care, which is often referred to as asset preservation planning. If you are new to this topic but wish for your estate to be managed in a smart way to ensure your long-term care, the following is an overview of how asset preservation planning can help you.
Protecting your assets
Entering an assisted living facility can be extremely expensive, regardless of how high-end it is deemed to be. No matter the extent of your assets, living in a nursing home for a matter of years can burn through your assets quickly. This is why it is important to do some prior planning ahead of making this transition.
If you are able to structure your assets in the right way, you may be able to protect them from being used to fund your care. For example, creating an asset protection trust will enable you to create a fund for a loved one to inherit after your death the can be used now by you to fund your living expenses. This will prevent your assets from being burned away by medical and living costs.
If you want to plan for assisted living but you’re not sure where to start, consider looking at the legal options available in the form of trusts.