Many people are going through life without any estate plan at all, and there are those who think that an estate plan can be reduced to the creation of a last will. In fact, your estate plan should ideally be part of a holistic long-term financial plan. Your financial plan should prepare you for each stage of life.
Time can pass quickly. You may wake up one morning as a middle-aged person and come to the realization that you are not on track for retirement. It can take focused planning over a number of decades to prepare yourself for your golden years. If you live in the moment spending money without any type of strategy, you may never be able to retire.
When you envision retirement, you may think about crossing things off your bucket list as you enjoy quality time with your family. If you plan ahead properly, this may well be possible. At the same time, you should consider the expenses that you may face after your active retirement years are behind you.
The majority of senior citizens are going to need long-term care eventually. Assisted living is very expensive, with the average annual charge for nursing home care exceeding $180,000 in New York. Medicare is not set up to assist with long-term care costs.
When you are creating a financial plan you should certainly keep long-term care costs in mind. Medicaid is a government program that will pay for long-term care. Because it is a need-based program, you must position your assets optimally if you want to be able to gain eligibility while retaining resources for the benefit of your family.
This takes careful advance planning. When you are planning for retirement, you should consider each stage of life that will come after your working years.
Estate planning can be looked at in a couple of different ways. You may have no particular legacy goals. If something happens to be left, your family will inherit it. If not, so be it.
There are others who want to be able to do certain things for their family members. We touched upon the holistic nature of long-term financial planning in the opening. It is best to see things from an overview, because each phase of life leads into the next. The actions that you take on the way will impact the legacy that you will have to leave behind to your loved ones.
Financial Planning Consultation
To be appropriately prepared each step of the way you must work within a cogent financial plan. There is a lot to take into consideration, and it can be complicated. If you would like to discuss your goals with a licensed attorney, contact us to schedule a free consultation.