The average cost of nursing home care across the nation is $80,000. Here in Massachusetts, it the average is $129,000. Therefore, residents may want to consider including long-term care in their estate planning.
As the average age of the country's population increases, so does the number of elderly people requiring nursing home care. At present, the Census Bureau estimates that approximately four percent of the population that is 65 and up reside in the 1.7 million beds available in nursing homes. That percentage skyrockets to 50 percent for people 95 years and older. Each year, the costs associated with that care increase. Medicaid will cover a certain portion of it, but doing some advanced financial planning could be in order.
Many people consider the use of long-term care insurance, which would cover an additional portion of the cost. However, it can be too expensive for some people depending on age and health. The cost can be more manageable if purchased at a younger age. Fortunately, these insurance policies are not the only option available to Massachusetts residents.
Estate planning can provide additional options for people who are concerned with the need for long-term care. Having enough money to pay for care is not the only consideration. Medicaid has certain financial requirements that must be met in order to qualify.
Therefore, it is important to make sure that the wealth individuals accumulate during their lives is protected. Fortunately, estate planning documents can be tailored to an individual's needs. This way, it will be possible to provide for care later in life while also providing for loved ones.
Source: CBS Boston, "The Basics Of Long Term Care Insurance", Dee Lee, June 25, 2015