Long-Term Care Costs Expected to Rise Above Rate of Inflation in 2025
Long-term care costs are a serious concern for many people and families in New Jersey. A statistic cited in a recent report on long-term care insurance coverage from CBS News found that long-term care costs are expected to continue to rise faster than the rate of inflation in 2025. It is imperative that you and your family have a proper care plan in place. Here, our New Jersey long-term care attorneys highlight strategies for protecting your finances from long-term care risks.
Long-Term Care Costs in New Jersey are Still Going Up
Over the last two decades, long-term care costs have increased dramatically—significantly faster than the overall rate of inflation. That has created serious financial challenges for many people and families in New Jersey. Alarmingly, long-term care costs are projected to continue to rise faster than the rate of inflation in 2025. Indeed, families in New Jersey are facing mounting financial challenges—the average cost for a private room in a skilled nursing facility now above $120,000 per year in the state. Planning for long-term care is now more critical than ever.
Your Family Needs to Be Ready: Strategies for Long-Term Care Planning
As daunting and stressful as it can be to think about long-term care costs, it is one of the most important things you can do related to your estate planning. A proactive approach is a must. The sooner you get started with long-term care planning, the more options you will have available. A New Jersey long-term care planning lawyer can help you determine the right strategy for your specific situation. Here are some of the most notable long-term care planning options:
- Purchase Long-Term Care Insurance: Private long-term care insurance can provide financial protection against the rising costs of nursing homes, assisted living, and in-home care. However, policies vary widely. It can often be challenging for people to find an affordable private long-term care policy if they are already in their 50’s.
- Set Up a Medicaid-Compliant Trust: An irrevocable trust is a powerful tool for protecting assets while maintaining Medicaid eligibility. By transferring certain assets into the trust, they are no longer counted as part of your estate for Medicaid purposes after the five-year look-back period. For many people, a trust is the best option for long-term care planning.
- Consider an Early Gifting Strategy: As long as you start taking action five years before any actual long-term care need, you can rely on the gift/estate tax exemptions to gradually start moving assets out of your own estate through early gifting. It may be an effective option.
Contact Our New Jersey Long-Term Care Lawyers Today
At Poulos LoPiccolo PC, our New Jersey long-term care attorneys are committed to providing top-tier legal advocacy to clients. You need the right plan in place to protect yourself and your family. If you have any questions about long-term care planning, please do not hesitate to contact us today. We provide long-term care planning services statewide in New Jersey.
Source:
cbsnews.com/news/who-qualifies-for-long-term-care-insurance-coverage-in-2025/
