Reviewing Your Personal Resources for LTC

Reviewing Your Personal Resources for LTC

An old saying has it that “it’s better to know than to wonder.” That is especially true when it comes to your personal resources for meeting your long-term care needs. Below are things you can do to inform yourself.

1. Figure out what personal resources you have for your long-term care. Look at bank accounts; Social Security payments and pensions; CDs; stocks, bonds and other securities; real estate; other tangible assets such as cars, furnishings, insurance and continued income from working. Divide the total value of these assets by the number of years you expect to need this money. Then you will have an idea of what your monthly income may be.

2. Review the types of care available (see “Definitions” and other articles on this website). Figure out the cost of each for a set number of years. Also figure out the costs if you vary the types of care over the years.

3. Determine if there is a family member or other loved one who can voluntarily provide you care while you remain in your own home.

4. Look at your personal finances again to see if you can determine how long you will be able to handle your daily living expenses, knowing that some of your revenue sources will remain static while your medical expenses are likely to increase. What can you do to pare expenses and gain capital.

5. Research living and revocable trusts, which can be used only in certain ways and in certain situations. You may want to consult your insurance agent, financial planner or lawyer.

6. Learn as much as you can about Medicare and Medicaid — the two biggest government programs for paying for health and long-term care. Make sure you understand the eligibility requirements and application process. Veterans may have additional resources available to them. A good starting pointfor learning more: www4.va.gov/ healtheligibility/costs/LongTermCopay.asp

[based on article on eHow.com]