Planning Your Estate is Just the Beginning…
June 30, 2009
Many people come into our offices thinking that the estate plan we help them create will be quick, easy, and — above all — final for all time. They hope that once this item is crossed off the to-do list they can breathe a sigh of relief and never think about it again. For some people this is exactly what happens, but others find that the creation of an estate plan serves as jumping off point for other important planning strategies: Retirement planning, investment planning, Medi-Cal planning and long-term care planning are all important issues every family will have to eventually consider.
Most of these issues are at least somewhat familiar, but long-term care still presents a number of questions for many people: What exactly is it? Will I need it? Who will provide it? And how will I pay for it? In an effort to shine some light on the still murky issue, the AARP has published an article that helps answer these questions in a clear and concise manner. The article also addresses issues such as the difference between public and private services, and when you may need to utilize one or the other.
Answering the difficult questions, however, is only the first step. “Using a combination of support—family and friends, community services, private funds, and government assistance, if necessary—provides a balanced approach to getting the help you need in the setting of your choice.” Once again, having a plan is essential to ensure that you retain control over your own finances and care needs far into the future.
A Situation Such As This
April 24, 2009
A child paralyzed in a tragic accident; a spouse diagnosed with Parkinson’s disease and then placed in assisted living after a terrible fall; mounting medical bills. How does one plan for a situation such as this? Kate Michelman certainly thought she and her husband had planned for every eventuality—she is a well-known and well-to-do public figure, they have excellent medical insurance, long-term care insurance—and yet still they found themselves “on the brink of losing everything”.
Michelman’s story is frightening precisely because it could happen (and is happening) to any of us. The unfortunate truth about medical insurance, long-term care insurance, and Medicare / Medi-Cal for those who qualify, is that they often cover “most of the cost” of medical treatment—but “most” is woefully lacking when faced with the reality of the high cost of medical care. Deductibles, Co-payments, Share of Cost, the Medicare Prescription Drug “donut hole” and “uncovered services” can sometimes create a huge personal obligation.
And so we ask again, how does one plan for a situation such as this? The answer begins with “help”. The medical industry, insurance industry, and government benefits programs are staggeringly convoluted and confusing. Enlist help in navigating their requirements and regulations. Find a professional who can help you build a plan to make the best use of those systems and what they offer. Find other professionals who are well-versed in peripheral systems who can support that plan.
Medical care in the United States has become a mountain of cost, and even the young and healthy cannot afford to ignore it any longer.
Jinies.com