Long-term care planning is the process of preparing for the possibility of needing assistance with daily living activities due to aging, illness, or disability. It involves creating a plan for how you will receive care and how you will pay for it, as well as making legal arrangements to ensure your wishes are followed in the event that you are unable to make decisions for yourself.

When planning for long-term care, it’s important to consider legal issues such as creating a durable power of attorney for healthcare and finances, drafting a living will or advanced directive, and establishing a trust or other asset protection plan to manage your assets and protect them from being spent down on long-term care expenses.

A durable power of attorney for healthcare and finances is a legal document that allows you to appoint someone to make decisions on your behalf if you become unable to do so. The person you appoint, known as your agent or attorney-in-fact, can make decisions about your medical treatment and financial affairs. It is important to choose someone you trust to act in your best interests.

A living will or advanced directive is a legal document that allows you to specify your wishes for medical treatment and end-of-life care if you become incapacitated and are unable to communicate your wishes. It can include instructions on whether you want life-sustaining treatment, such as artificial feeding and hydration, and what type of pain management you prefer. It is important to discuss your wishes with your loved ones and healthcare providers.

Long-term care can be expensive, and without proper planning, your assets may be spent down on care costs, leaving little for your loved ones or for your own needs. Establishing a trust or other asset protection plan can help preserve your assets and ensure they are used as you intended, while also allowing you to qualify for government benefits such as Medicaid if needed.