DEVELOPING A LONG TERM CARE PLAN FOR AN INCAPACITATED SPOUSE

CASE STUDY:

Harry and Joan have been married almost 50 years. They have accumulated a comfortable “nest egg” of savings. However, Joan has been diagnosed with early Alzheimer’s, while Harry is in good health and provides care for Joan. Harry worries about the progression of Joan’s dementia. What if Harry develops a chronic illness or, worse, what if he dies before Joan? Harry wonders if there is any way that he can create a plan for the special needs of Joan if he dies before her, or if he suddently becomes incapacitated.

Harry had heard about something called a Special Needs Trust that would allow Joan to receive government benefits supplemented by their accumulated savings. But, he also heard that a “Living Trust” may not be the way to go. If correct, is there some other way to protect Joan?

GOOD NEWS! Yes, there is a way that couples can provide for the survivor in this situation. It requries some special planning. Instead of relying upon a “Living Trust” as the primary estate planning device, Harry should consider creating a Will which contains Special Needs Trust provisions for Joan. His plan should be entirely coordinated with the Will. If Harry dies before Joan, the Will — not the trust — will help protect Joan and provide for her needs. This kind of planning takes special skill and knowledge about government benefits. Our firm may be able to help.

Knowing that there is a solution may give both of them greater peace of mind as they approach the challenges of aging and Joan’s progressing disability. NOTE:  Where both spouses have capacity and are able to fully participate in planning decisions, we offer the Spousal Protection Plan to secure their future.