by Jeremy A. Wechsler, Esq.
Investment Advisor Representative
[email protected]
I’m rounding out my first year at Franklin Retirement Solutions in a couple of months, and I couldn’t be prouder of our team and the future that lies ahead. But the best part can’t be said enough: We really do have the best clients. Over the past year, I’ve had the pleasure of meeting many new faces and reconnecting with familiar ones.
While meeting our clients and sitting in on meetings with my dad and Rob, one question comes up time and time again: What if I need long-term care? How will I pay for it? Where will I go? Can Medicaid cover the cost?
Long-term care planning is highly personalized. The right strategy depends on your age, marital status, legacy goals, asset mix, health conditions, and more. No two clients are alike. It’s also an area where both a financial advisor and an attorney play important roles. A financial advisor can start the process and offer certain solutions, while an attorney can assist with more advanced legal planning.
Although not every option below will apply to everyone, it’s helpful to understand what’s available:
- Traditional Long-Term Care Insurance
Premiums are paid on an ongoing basis, with no return of premium if care isn’t needed. These policies offer dedicated coverage but have become less popular due to rising costs and premium increases. - Hybrid Life + LTC Policies
These combine universal life insurance with long-term care benefits. If you never use the care portion, your beneficiaries receive the death benefit. If you do need care, you can draw from that benefit tax-free to pay expenses. - Annuities with LTC Benefits
Certain annuities offer enhanced payouts if you need long-term care. For example, an income annuity might double your monthly payout for a few years during a qualifying care period. This can be a good fit for retirees who want guaranteed income with an added safety net for health events. - Continuing Care Retirement Communities (CCRCs)
Also known as “life plan communities,” CCRCs offer a continuum of care—from independent living to assisted living to skilled nursing—all on one campus. They often require an entrance fee and monthly charges, but they provide peace of mind knowing care is available without a major relocation. Contract types and costs vary widely, so review the financial terms carefully. - Self-Funding or Family Care
Some families choose to cover costs directly from savings or rely on family support. This can work, but it’s important to understand the potential emotional, physical, and financial strain that caregiving can bring. - Trusts and Gifting
Utilizing trusts or making gifts well in advance of needing long-term care can help protect assets from Medicaid spend-down. This strategy often works best for “never money” (legacy assets) or second homes. It can be a great option for clients who have a clear legacy goal and the right assets to protect. - Medicaid as a Safety Net
Medicaid can cover long-term care, but only after significant asset spend-down and within strict eligibility limits. It’s not a plan to depend on, but it’s important to understand how it fits into the bigger picture. There are ways to plan in advance (see above). And even if no planning has been done, it’s crucial to engage with an elder law attorney when entering a nursing home—there are still strategies available at that stage to help protect assets.
What’s the right approach for you? It depends on many factors. The goal isn’t just to cover expenses—it’s to preserve dignity, independence, and family stability.
If you’d like to discuss your options, reach out to me or your advisor. We’ll help you explore which approach makes the most sense for you and your family.