When most people think about estate planning, they focus on what happens after they’re gone—how their assets will be divided or who will inherit the family home. But a comprehensive estate plan also considers what happens while you’re still alive, particularly if you ever need long-term care. Ignoring this element can leave your family in a difficult position and your savings at risk.
Why Long-Term Care Matters
As people live longer, the likelihood of needing long-term care increases. Nearly 70% of people turning 65 today will need some form of long-term care during their lifetime. That care can take many forms—in-home help, assisted living, or a nursing home—and the costs can be staggering. In 2024, the average annual cost of a private nursing home room exceeded $115,000, while assisted living averaged around $60,000 per year.
Without planning, those expenses can quickly deplete even a well-funded retirement account. Many families are surprised to learn that Medicare covers only limited short-term skilled nursing care—not ongoing custodial care. That means most long-term care costs must be paid out of pocket unless you have long-term care insurance or qualify for Medicaid.
Integrating Long-Term Care into an Estate Plan
Including long-term care planning in your estate plan helps protect both your assets and your loved ones. Long-term care insurance is not the only option for covering expenses as you age. There are a wide array of options available depending on your situation. It is not a ‘one-size-fits all’ approach which is why we do holistic planning with each client.
Protecting Family and Confidence
Planning for long-term care is about more than protecting assets—it’s about ensuring quality of life and preserving family harmony. When these plans aren’t made in advance, loved ones may be left scrambling to make difficult choices under pressure. A well-structured estate plan that anticipates long-term care needs gives everyone clarity about your wishes and how care will be funded.
It’s also about confidence. Knowing that you have a plan and that your family won’t have to shoulder unexpected burdens provides reassurance in an uncertain future.
Long-term care isn’t just a medical issue; it’s a financial and emotional one, too. Including it in your estate plan ensures your future is protected, your wishes are honored, and your loved ones are supported. If your current plan doesn’t address how care will be provided or paid for, it’s time to revisit it with a qualified estate planning or elder law professional.
Even a simple financial plan can provide clarity and direction, reduce money-related stress, and help you prepare for life’s surprises. This is why at ClearPath Advisors we include a CFP® professional as part of our team approach with our clients. They provide valuable and unique insights.