Planning for Long-Term Care in Georgia to Protect Your Financial Security

While comfort and support are crucial in our later years, long-term care planning in Georgia requires that you consider factors beyond that. It’s a powerful tool for safeguarding your financial well-being.

Yet, despite its significance, it often gets sidelined by discussions on financial planning and retirement preparation. We understand it can be a difficult, often emotional, subject to discuss when it comes to your or your loved ones’ future, but those difficult conversations can be some of the most important.

The reality is that 70% of people turning 65 will need at least some long-term care in their lifetime, with 48% paying for it out of pocket. With the median cost of long-term care in the United States exceeding $100,000 annually, proactive planning is essential to preserve your hard-earned wealth and ensure financial security.

If you’re 50 or over, or have parents in that age group, and anticipate living to at least 80, long-term care planning should be on your radar.

Financial Strategies for Long-Term Care Planning in Georgia

Understanding the different financial options involved can make all the difference in securing your financial future, ensuring you’re well-prepared for the road ahead.

Medicaid in Georgia

Medicaid can be a safety net for long-term care costs, but eligibility criteria and regulations vary by state. Georgia Medicaid covers long-term care in nursing homes for financially limited residents needing Nursing Facility Level of Care (NFLOC), including room, board, and medical services. Beneficiaries contribute most of their income, keeping $70/month for personal needs. 

Married couples must have less than $137,400 of countable assets, while single individuals must have less than $2,000. There is also a five-year “look back” period to prevent intentional asset depletion, such as giving away your wealth early to your heirs.

So, while Medicaid can cover long-term care costs, you would need to have almost nothing in terms of assets for it to be an option for you.

Asset protection 

You may be confident in being able to afford long-term care now, but what happens in 10, 20, or even 30 years when your assets have depleted and costs are still rising? Implementing asset protection strategies ensures you can maintain your quality of life during retirement. 

Consider strategies such as setting up trusts or gifting assets (within allowable limits). Consulting with your financial advisor to develop personalized wealth preservation plans tailored to your specific circumstances and goals is invaluable when it comes to long-term care planning. Proactively safeguarding your assets today helps ensure financial stability and peace of mind for you and your loved ones in the future.

Insurance considerations 

Specific long-term care insurance provides coverage for the costs associated with long-term care services and can be blended with life insurance. This means that if you don’t use all of the benefits for long-term care expenses during your lifetime, the remaining benefits will be paid out as a death benefit to your named beneficiaries. 

This ensures that the money invested in long-term care insurance continues to provide financial support to loved ones even after you’re no longer with them. As with any insurance, premiums may vary depending on various factors. However, the average annual long-term care premium for $164k worth of benefits is $1870 for a 55-year-old man and $2965 for a 55-year-old woman.

Developing a Plan: Tailoring Strategies to Your Needs

Developing a comprehensive long-term care plan is essential, and the time to start is now. Begin by taking stock of your assets and, by understanding your financial resources, working out how much you can afford to put toward long-term care expenses and whether additional planning, such as insurance, is necessary.

Next, consider your retirement income needs. Calculate your anticipated expenses during retirement, including housing, healthcare, and daily living costs. Factor in potential long-term care expenses, considering inflation and rising healthcare costs. 

In addition to financial considerations, think about your wishes for care. Would you prefer to receive care at home, in an assisted living facility, or a nursing home? What level of assistance do you anticipate needing for activities of daily living, such as bathing, dressing, and meal preparation? Discuss these preferences with your loved ones and healthcare providers to ensure your care plan aligns with your desires and values.

One crucial decision is whether to self-insure or purchase long-term care insurance. Self-insuring means relying on your savings and assets to cover future long-term care expenses, while long-term care insurance protects against these costs. 

Securing Your Financial Future

Don’t overlook the impact of long-term care planning on your family. Consider the emotional and logistical challenges your loved ones may face in coordinating your care and managing your affairs. By proactively addressing these concerns and creating a clear plan for long-term care, you can ease the burden on your family and ensure that your wishes are respected.

If you need assistance navigating medical benefits, developing a long-term care plan, or protecting your or a family member’s wealth, reach out to our team today.