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ANNOUNCEMENT: We are dedicated to your legal needs and available during this difficult time. In order to do our part to help stop the spread of COVID-19, we are offering virtual consultations for both new and existing clients upon request. Click HERE to contact us and request a consultation by video, telephone or in person.

Options for paying for long-term care

On Behalf of | Aug 30, 2022 | Estate Planning |

Your estate plan should cover the possibility of having to pay for a year or more of long-term care. Without a plan, this possibility could wipe out savings and diminish your legacy.

Several strategies exist for finding the means to pay for time spent in a residential care facility in New York.

A significant expense

No matter where you live, according to information from the financial site Moneygeek, the cost of long-term care runs into thousands of dollars a month. This holds whether the care takes place in an assisted living facility or a nursing home. Costs range from about $50,000 a year to as much as $100,000 a year depending upon the facility.

While you can hope to avoid this stage of your life, the truth remains that many people will need to spend time in a care facility. The smart approach calls for having a viable plan in place to finance a stint at a care facility.

Several options

Many people use a comprehensive approach to plan for long-term care financing. A primary source of payments for many comes from long-term care insurance, in which you begin to pay premiums before entering a facility. These policies vary widely by price and they pay for all or some of a stay in a facility for a set period.

You can also tap into other financial instruments that have provisions for long-term care payments. These include life insurance policies and annuities. Other potential sources of income come from pensions, savings and reverse mortgages.

A sound estate plan helps you prepare for a successful future. This includes the possibility of needing long-term care.