July 3, 2018

Most people assume that they do not need long term care planning in their overall estate planning. Since illness and death are both extremely difficult subjects to broach on your own, many people don’t even realize the serious possibility of facing the high statistics. In fact, a recent fidelity study found that the amount of money people will have to spend on typical medical and health care expenses in retirement is up 70% from 2002 numbers. 

A person retiring this year at age 65 will have to come up with around $280,000 just for their health care, and the cost for long term care insurance is not helping the situation either. In fact, long term care insurance premiums have been rising dramatically in recent years and this means that people now have to pay more to get even less support from their long-term care policies. It is a huge mistake to assume you won’t be touched by long term care. There is a possibility that you have already encountered a family member who did not do appropriate planning and has had to suffer financially as a result of a sudden incapacitating event, such as a diagnosis of dementia or even a broken hip that leaves them in the nursing home for far too long.  A tsunami of baby boomers is expected to retire in the coming years and have a significant need for long term care.

Details from the U.S. Department of Health and Human Services shows that a person turning 65 this year will have a 70% chance of needing long term care. But fewer than 16 % of American adults today have long term care insurance to pay for that. Avoidance is the planning default because many people don’t realize the opportunities available to them or how to most appropriately fit it into their existing schedule. If you find yourself in this situation, it is important to schedule a consultation with an experienced estate planning lawyer in New Jersey today to learn more about your options and to consider how Medicaid and other planning tools can help you while you are still alive.