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3 long-term care planning strategies to protect your assets

On Behalf of | Nov 13, 2023 | Estate Planning

In the intricate landscape of long-term care planning, ensuring the protection of your assets is a necessary step toward securing a comfortable future.

As people navigate the complexities of aging, it becomes imperative to adopt strategic measures that shield their hard-earned resources.

1. Diversify your investments

One effective strategy to shield your assets is to diversify your investments wisely. By spreading your financial resources across a range of assets, such as stocks, bonds and real estate, you create a robust portfolio that can weather market fluctuations. Diversification not only mitigates risk but also enhances the likelihood of steady growth over the long term, offering a protective shield for your assets.

2. Explore long-term care insurance

Investing in a well-designed long-term care insurance policy can be a shrewd move. These policies cover expenses associated with nursing homes, assisted living and in-home care. By securing such insurance early on, you create a financial safety net, ensuring that the burden of long-term care expenses doesn’t erode your assets.

3. Establish a trust

Setting up a trust can be an effective means of protecting your assets while maintaining control over them. A trust allows you to transfer assets into a legal entity, managed by a trustee, who ensures that your assets get distributed according to your wishes. This strategy not only safeguards your assets from potential creditors but also streamlines the transfer of wealth to beneficiaries, avoiding the complexities of probate.

Approximately 70% of people 65 or older will need some form of long-term care. By taking proactive measures, you can fortify your financial foundation and navigate the future with confidence.