As we head into the holidays this year, this season will likely look significantly different from years past.
Out of concern for older and high-risk family members, most families will probably celebrate apart, or at least with masks and proper social distancing. For family members in nursing homes and other health care facilities, the isolation can be even more daunting. According to AARP, residents and staff of nursing homes and other long-term care facilities have accounted for more than 40 percent of all U.S. COVID-19 deaths.
Although the holiday season may look different, now is the time to have tough conversations centered around long-term care. Because of the possibility of isolation due to COVID, many families have concerns about placing their older loved ones in a nursing home. Now is the time to reassess their current estate plan and have open discussions with an experienced elder professional about their care.
Most families wish to keep their loved ones at home as long as possible, using unpaid or independent caregivers. While unpaid family or friends can help with the caregiving and lighten the financial burden, they are usually not a sustainable option.
An irrevocable trust may be an option to proactively plan to protect your family member's assets from the cost of long-term care. Irrevocable trusts take advantage of tax benefits and protect assets from a Medicaid spend-down after five years from when the assets are put into or funded in the trust.
Irrevocable trusts also provide numerous advantages over outright gifting to beneficiaries or family members because of potential taxes, lawsuits, and estate planning issues.
Finally, irrevocable trusts may protect the beneficiaries' assets upon the creator's death and allow the assets to avoid probate.
Davis Law Group can help
Now is the time to establish a clear plan for long-term care in the future. Our attorneys are experienced in estate planning, trust administration, real estate law, business and corporate law, and litigation. They are here to assist you in ensuring your estate plan is protected for years to come. Give us a call today so we can discuss ways to maximize planning strategies for your loved one's long-term care. We are available for in-person, telephone, or virtual meetings.