Planning for Long Term Care

I don’t need to tell you that taking care of a loved one is physically and mentally exhausting. It certainly wouldn’t be a stretch to say that care giving is the hardest job many of us will ever have. And while it’s important not to overlook the benefits of care giving – the selfless giving of oneself to care for someone you love – there may come a day when your loved one needs more help than you are able to give. That’s where long-term care comes in and there’s no better time than the present to start planning.

Too often, people are forced to make important decisions when they are in the midst of a crisis. Avoid this mistakeby holding a family meeting well before long term care is needed. If you do,your head will be clearer and your decisions will be wiser.

Long-term care has evolved over recent years to include a broad range of services such as homemaker and companion services, nursing homes and assisted living residences, nutritional programs, adult day care and visiting nurses.

Services such as respite and home healthcare are usually paid for out of pocket. The same goes for nursing home care which according to a 2008 survey, can cost upwards of $70,000 per year. Most people can’t afford to pay for all the care that’s needed without becoming financially vulnerable themselves.

Start planning for long term care by assessing the care recipient’s current expenses. Next, assess resources and assets that could help cover costs of care: Wills, medical and durable powers of attorney; bank and brokerage accounts; real estate; pension and retirement benefits; Social Security and stocks and bonds. And make sure to scour your community for low to no-cost resources such as Meals-on-wheels, volunteer respitecare, support groups, 24-hour telephone help lines and transportation services.

Lastly, you may want to consider talking with a professional financial counselor or a legal advisor who can give adviceon purchasing long term care insurance and available tax credits and deductionsthat could help pay for care.