Do You Have a Long-Term Care Plan?

October is officially Long Term Care Planning Month and designed to prompt people to prepare for the cost of medical care as they age. Yet there are other things to consider in addition to long-term care: healthcare proxies, living wills, and end-of-life care. Keep reading for ideas on what to include in a comprehensive long-term care plan. 

Why It’s Important

Growing older is part of life. Sooner or later, most of us are injured or become ill. For your peace of mind – and your partner or family – you should have a plan in the event you are injured, sick, or incapacitated. Even if you cannot control the future, you can ensure you have the necessary resources and support. 

Long Term Care

Long-term care encompasses a range of services that includes medical treatment and what healthcare professionals call ADL, or Activities of Daily Living:

• Transferring (to or from bed or chair)
• Dressing
• Bathing
• Using the toilet/caring for incontinence 
• Eating

Family members, friends, or paid caregivers can assist with ADL. There are nursing homes and assisted living facilities for individuals who lack in-home care or need more intensive, 24-hour care. 

You’ll want to consider the type of care you prefer and how you will pay for it. Currently, Medicare does not cover ADL assistance and other non-medical care. You could benefit from a long-term care insurance policy depending on age and health. Or you can allocate a percentage of your retirement or other assets to pay for it. Use this long-term care costs calculator to determine how much you can expect to pay. 

Durable Power of Attorney & Health Care Proxy 

Making long-term care plans can help you understand what resources you’ll need. You also should select someone you trust to make decisions on your behalf, such as: 

• Would you want CPR or other resuscitation if your heart stops beating?
• Would you like to be put on a ventilator if you could no longer breathe on your own?
• What health treatments would you want (or not want) if you have progressive dementia or another terminal illness? 
• Are you interested in being an organ donor or donating your body to medical research?

Having someone to make these decisions based on your explicit, written instructions is essential. There are a few ways to make such arrangements: a durable power of attorney or a health care proxy. 

Durable Power of Attorney 

A durable power of attorney is a legal document that appoints an individual (‘the agent’ or ‘attorney-in-fact’). While there are specific types of powers of attorney, the kind that works with a health care proxy is a medical power of attorney. An individual specified within this document is given financial authority to care for your medical treatment decisions if you cannot consciously consent. The document is ‘durable’ due to its “durability” in the case that if you become mentally incapacitated, the document still holds as valid. 

Health Care Proxy

Although the law differs slightly depending on your state, a health care proxy is generally a legal document that appoints an individual (‘the agent’) to have authority over your health care decisions if you cannot consciously consent to the procedure. The healthcare proxy will be in charge of overseeing your care alongside your living will.

Your agent should be someone close to you: your partner, family, or a close friend. Within the document, the agent will have the authority to make decisions as if they were you, so make sure you choose someone you trust and update the document every ten years.

Last Will & Testament

In a last will and testament, anyone over 18 can designate what may happen to their estate after their passing. An estate can be defined as everything an individual’s net worth is composed of, including assets, land, and other possessions. The last will itself is a formal, legal document containing a testator’s (the person who has made the will) decisions and wishes regarding possessions and dependents.

Within your last will, you can specify lots of information about the assets you want to divide and which assets. People tend to give direction regarding property rights, authority over administering the estate, guardianship over minor children, guardianship over pets, and decisions regarding charity donations. 

Wills should also contain instructions about what you want to happen to your body after you die: cremation or burial. If you choose cremation, think about how and where you would like your ashes to rest. The more specific your instructions, the less confusion your family members experience when you are gone. 

Ethical Will

An ethical will is a voluntary, non-legally binding document that usually contains a set of stories, notes, and last words to your family and friends. It is not meant to replace a legally recognized last will. 

Adapted from Jewish tradition, the defining characteristic of an ethical will is the intent rather than the content. A moral will should be written to inspire your family and friends and share the values and hopes you believe they should uphold following your passing. It has been noted as a “love letter from beyond.”

Funeral Arrangements

Preplanning your funeral arrangements ensures your family understands your wishes. It also protects them from having to make difficult decisions during a time of grief. While it might feel uncomfortable to think about your passing, it’s even more unsettling to imagine your loved ones forced to make hasty decisions without your input or guidance.