Long-Term Care Story: Randy
A person we will also call Randy decided at the age of 50 he would not doom his 3 daughters to a life of bitterness and suffering. Beginning at the age of 51, he did 2 key things:
#1 He contacted an estate attorney and completed his will/trust to ensure the proper distribution of his assets. He did this in consultation with his family.
#2 He took a portion of his savings and bought a long-term care insurance policy that would provide his ability to pay for professional family so his family could be care managers not care givers. (His strategy was to carve out a portion of what he was saving to buy the policy.) Back then he projected that the monthly cost of his care (inflation-adjusted) in 30 years would be $60K/monthly. To offset that now, he began making payments of $7K a year in anticipation of alleviating these exorbitant amounts from his daughters and their families. 30 years later, when he had a stroke, he was able to get the care he needed without being a burden to his family. Though they were sad to seem him decline in his old age, he did it gracefully, feeling loved. When he finally passed after a few years, his remaining assets were split three ways, leading to a positive resolution for his family. The difference: his family was intact because he took proactive steps to not burden them.
- I help them get the right legal docs along with the right financial plan to deal with long-term care.
- Lesson: You need to prepare the right legal docs with the right financial plan to sufficiently prepare your loved one for long-term care.