Myth: “I can save the money I’ll need for LTC services.”

Fact:  Anyone who’s had this thought should stop to consider two crucial questions: How will I save up the money? And (more importantly) why?

LTC services can be very expensive. The growing costs for care present a huge financial risk to older adults’ retirement dollars. Those who plan to take on the burden of LTC expenses for themselves and/or a spouse or other loved one could wipe out their lifetime savings much faster than they expect.

Consider the facts:

• The average cost of a nursing home in this area is over $12,000 per month (i.e. $144,000 per year).
• Of all Americans 65 and up today, 1-in-5 will require LTC services for five years or more.
• At today’s average cost, a couple with $500,000 in assets would deplete their savings in just a few short years paying for LTC services.

Industry expert Harley Gordon, J.D., CLTC, states that a lasting illness “Invariably leads to an invasion of portfolio capital, the purpose of which is to provide predictable streams of income. Using capital to pay for care results in unnecessary taxes, market timing and liquidity issues. And just as important, every dollar used to pay for care is one dollar less toward keeping future commitments to the family, keeping commitments to charities and providing a legacy to those (you love).”

For a complete list of upcoming seminars, visit our website at www.davidwingate.com.

Peace of mind is only a call or click away! For an Initial Consultation call Estate and Elder Planning by David Wingate at (301) 663-9230 or visit www.davidwingate.com

David Wingate is an estate planning and elder law attorney at Estate and Elder Planning by David Wingate. The Estate and Elder Planning office services clients with powers of attorneys, living wills, Wills, Trusts, Medicaid and asset protection. The Elder Law office has locations in Frederick, Washington and Montgomery Counties, Maryland.

Notice: this Blog is published as a free service of the Estate and Elder Planning by David Wingate. The information is for general informational purposes only and does not constitute legal advice. For specific questions, please consult with one of our experienced attorneys. We encourage you to share this newsletter with anyone you think may be interested.