Unfortunately, in this great country of ours, hundreds of billions of dollars of accumulated wealth have been lost to long term care/nursing home costs. With proper planning, almost all of these losses could have been avoided. Advanced planning and even last minute crisis planning can be a godsend. However, if you wait until you are older, or are faced with an emergency situation, your options are extremely limited and the costs can be substantial. In defense of our senior citizens, nursing home and their costs were never an issue when they were growing up. Nursing homes are a relatively modern phenomenon. Because of great strides in medicine, people are living longer, albeit, many times with a diminished quality of life. The modern nursing home does serve a purpose.
Adult Children Planning (and why it’s so important)
The adult children of our senior clients are equally at risk. Although we are, as a society, taking better care of ourselves, the vast majority of adult children, all too well know the value and importance of planning. Even if you are in your 50s or 60s, it is not too early to start your planning. In fact, it’s the prudent thing to do. Here is a synopsis of documents that almost everyone needs.
- A Basic Will: Again, a Will is just a start. It’s not always the end all, be all of a plan and it may not accomplish all your goals. Often times Wills will have to be combined with Trusts to be more effective, i.e. avoiding Probate costs and specific family situations.
- Power of Attorney: We still have a high probability of becoming incapacitated or incompetent; therefore, a Power of Attorney is necessary. It will allow somebody to legally step into our shoes and act on our behalf.
- Health Care Proxy: A Health Care Proxy is a document that allows medical decisions to be made on our behalf if we are not able to do so.
Adult children have the benefit and hindsight of knowing the consequences of not doing proper planning. Here are two main advantages of doing medium to long-range planning.
- It is very, very cost effective. Pennies on the dollar compared to waiting.
- You’re afforded flexibility and fluidity. Life throws us curve balls and life changes occur. Your plan can and will change along with your circumstances.
Whatever your situation is, Generations Asset Preservation can help you design a plan best suited for your particular family dynamics.
This is not cookie-cutter planning, but strategic and purposeful. The way planning should be.
Free eBook: Are Your Finances in Shape?
This time of year, it is more than likely you are assessing your physical health. Don’t forget about your financial health! Sitting down with a professional and following this simple budget plan could be the most important thing you do all year.