With long-term care costs rocketing north of $100,000 annually, failing to plan for long-term care costs could erase a lifetime of earnings and the chance to leave a financial legacy. The cost of care for dementia patients is even higher, with additional costs adding $56,000 to $72,000 more than long-term care. A recent article in Forbes, “The $780 Billion Crisis: Why You Need An Estate Plan For Family Members Who Are Older Or Have A Disability,” explains why estate planning is critical.
Without the right estate planning in place, difficult decisions during medical emergencies, an increased possibility of exploitation of vulnerable members and devastating conflicts creating permanent family rifts are almost inevitable.
Without healthcare proxies and HIPAA releases, family members won’t be able to communicate with doctors or access healthcare records in a medical crisis.
Without advance directives, no one will know if a parent or spouse wanted to have one kind of life-supporting treatment and not another, leaving family members to struggle with a life-or-death decision.
Someone who is suffering from dementia but doesn’t have valid power of attorney documents is vulnerable to financial exploitation. The family might be struggling to figure out how to pay for long-term care, only to learn a caretaker or family member has emptied bank accounts or created massive debt on a credit card.
Without proper planning, decisions about housing, from modifying a current home to placing a loved one in a skilled nursing facility, will take longer and could decimate the family’s resources.
Counting on applying for Medicaid, especially in a crisis, and finding a suitable facility, doesn’t always work out well, as when the process is not planned. Meeting the requirements for Medicaid may require the family to deplete a parent’s savings, resulting in the loss of decades of accumulated wealth.
Meet with an estate planning attorney to have proper legal documents created while the individual is still capable of executing them. These documents may include a Durable Power of Attorney, Healthcare Proxies, HIPAA releases and healthcare directives, also known as a Living Will.
Asset protection strategies should be established well in advance of the need for them. This may include irrevocable trusts for Medicaid planning, Special Needs Trusts for family members with disabilities, or long-term care funds through dedicated trusts.
Implementing a plan requires the professional guidance of an experienced estate planning attorney. The team ideally includes the estate planning attorney, financial advisor and possibly a geriatric care manager. Include family meetings to discuss care preferences and map out financial resources before a crisis.
The financial and emotional repercussions are too high to leave these critical matters to chance. By planning in advance, families can be prepared to help loved ones navigate the inevitable challenges of aging, while protecting family resources and relationships.
Reference: Forbes (June 23, 2025) “The $780 Billion Crisis: Why You Need An Estate Plan For Family Members Who Are Older Or Have A Disability”