During estate planning, many people focus on passing down assets but forget to include long-term care needs. In New York, nursing home or home care costs can be high, so it is important to prepare. Adding specific instructions to your will and other estate documents can ensure your family follows your wishes.
Include long-term care instructions in your estate plan
Your will distributes assets after you pass away, but it does not control what happens if you need long-term care. To make sure your wishes are followed, you should include instructions in other estate planning documents. A living will can state your medical preferences, such as whether you want life support or certain treatments. A healthcare proxy allows a trusted person to make medical decisions if you are unable to do so.
You may also want to create a financial power of attorney. This document gives someone you trust the ability to manage your money, pay for care, and handle other financial tasks if you become unable to. Without these instructions, your family or even the court may take over decisions about your care, and they may not do what you want them to.
Plan for nursing home or home care costs
New York has strict rules about Medicaid eligibility, which many people rely on for long-term care. If you do not plan ahead, you may have to spend most of your savings before qualifying. One way to protect assets is to create a trust. A Medicaid Asset Protection Trust can allow you to keep certain funds while still qualifying for assistance when needed.
You should also consider long-term care insurance, which can help cover costs without using all your savings. If you prefer to stay at home rather than move into a nursing home, make sure your estate plan includes instructions for using your assets to pay for home care. Clearly stating your preferences can help ensure your care matches your wishes.
Your estate plan should support both your financial goals and your future care needs. Taking these steps now can give you peace of mind.