Many people think estate planning and elder law are synonymous terms. While they have some overlap, they focus on different goals. Estate planning is about protecting your assets and making sure they are passed on in the most tax-efficient way after you pass. Elder law also looks at what happens to your assets, but the focus shifts to protecting them from long-term care costs.
Everyone should have an estate plan, but once you reach your mid-to-late 60s, it’s time to start thinking about elder law planning. Since there is a 60-month lookback period for Medicaid eligibility, having a plan at least five years before you need care is key. If a diagnosis like Parkinson’s or multiple sclerosis happens earlier, planning should start right away to protect assets and ensure you have something to pass down to your loved ones.
Estate Planning: Protecting Your Legacy
Estate planning ensures your assets go where you want them after you pass. It also helps protect you while you’re still alive by allowing someone you trust to handle financial and medical decisions if you become incapacitated. A strong estate plan includes a Will, a financial power of attorney, a healthcare directive, and a trust.
One of the most significant benefits of estate planning is reducing taxes. A well-structured estate plan can help limit estate taxes and make things easier for your family. Without one, your loved ones could face unnecessary legal fees, delays, and confusion when settling your affairs.
Elder Law: Protecting Assets from Long-Term Care Costs
Elder law covers everything in estate planning but also considers long-term care costs. With the average nursing home costing over $10,000 a month, a lifetime of savings can disappear quickly. Medicaid can help cover these costs, but there are strict financial limits. Without the proper planning, you may have to spend down your assets before qualifying for help.
That’s where elder law planning comes in. By putting the right strategies in place ahead of time, you can protect assets while still qualifying for Medicaid when the time comes. Since Medicaid has a five-year lookback period, making transfers or setting up asset protection trusts must happen early. If you wait too long, your options may be limited and you may not qualify for benefits when needed.
Final Thoughts
Estate planning and elder law play an important role in protecting your future, but they serve different purposes. Everyone should have an estate plan in place, no matter their age. Once you reach your mid-to-late 60s, it’s time to start thinking about elder law planning. If long-term care is needed sooner due to a health diagnosis, acting quickly can make a big difference.
Roulet Law Firm, PA, helps individuals and families make the right plans to protect their assets and secure their future. Call us today at either our Florida office at 941-909-4644 or our Minnetonka, Minnesota office at 763-420-5087 to schedule a consultation to discuss your planning. Or, you can fill out the contact form on this page and a member of our team will reach out to you to schedule your consultation.
Or, if you are not yet ready to schedule a consultation, but would like to discover more, here are some additional resources for you:
If you would like to discover how you can protect your home and life savings from long-term care and nursing home costs, download a copy of my guide "Save Our Home". Click here to download your copy.
Joins us in my upcoming masterclass where I reveal the strategies I use with my private clients and their families to help them avoid probate, save on taxes, protect the money they leave for the kids in the event they get divorced, and much more. Click here to join us.
Join us in my upcoming masterclass where I share the strategies I use with my private clients to help them protect their home and life savings from long-term care and nursing home costs. Click here to join us.
