Did you know that about 70% of people over 65 will need long-term care services at some point1? Thanks to modern medicine, we’re living longer than ever before. This means we need to plan for the future to ensure we enjoy our years with dignity and independence. In California, the cost of long-term care can be very high, risking our savings1.
California has created this guide to help people plan for long-term care. This way, they can protect their savings, lifestyle, and dignity if they or a loved one needs care. Medicaid planning is key for many, covering long-term care costs for those with little income and assets1.
The Sandoval Legacy Group, part of Holstrom Block & Parke, has over thirty years of experience in estate planning in Southern California1. They have offices in Newport Beach, Riverside, Corona, Temecula Valley, San Diego, and Vista. They focus on estate planning, special needs planning, elder law, conservatorships, advanced tax planning, and probate1.
Key Takeaways
- Estimated 70% of people over 65 will require long-term care services in their lifetime
- The cost of long-term care in Southern California can be staggering
- Medicaid planning is a critical strategy to cover long-term care costs
- Sandoval Legacy Group offers over 30 years of estate planning experience in California
- Convenient office locations across Southern California
The Importance of Long-term Care Planning
Planning for your future means understanding the importance of long-term care in California. At least 70 percent of people over 65 will need some kind of long-term care at some point2. This need isn’t just for the elderly; 53 percent of those needing help are between 18 and 64 years old2. Yet, very little long-term care is covered by health, disability, or Medicare supplements2.
Statistics on Long-term Care Needs
It’s key to grasp the stats on long-term care needs in California as you plan ahead. Nursing facility costs are expected to jump by nearly 5 percent a year2. Women live about five years longer than men and often need care for 3.7 years, while men need it for 2.2 years2. The cost of nursing facilities has climbed from $0 in 2009 to an average of $400,000 a year by 20393.
| Statistic | Value |
|---|---|
| Chance of needing long-term care by age 65 | 70%4 |
| Long-term care planning month | October4 |
| Single person’s health care expenses in retirement (2023) | $157,5003 |
| Retired couple’s health care expenses in retirement (2023) | $315,0003 |
| Additional annual cost of private room in nursing home | $116,000+3 |
| Annual cost of home health aide (national median, 2023) | $75,5043 |
California’s Partnership for Long-Term Care program offers automatic 5 percent inflation protection and care coordination by licensed professionals2. You can pick a policy for residential or nursing facility care or a full policy for home and community-based care2.
Good long-term care planning ensures your financial security and access to needed services in the future. By understanding the stats and exploring your options, you can act now to secure your long-term care in California.
The Financial Burden of Long-term Care
The cost of long-term care in California and the U.S. is very high. In 2020, 5.8 million people used paid long-term services and supports (LTSS). Another 1.9 million used LTSS in places like nursing homes5. But, only 43% of adults have talked about who will care for them if they need help. And 43% are unsure about paying for their future care needs5.
Long-term care can quickly use up all your savings. Assisted living costs about $57,000 a year, and a private nursing home room costs up to $115,000 annually6. A California task force found most people can’t afford three months in a nursing home. About half can’t even cover one month6.
Many look into long-term care insurance and Medi-Cal planning because of the high costs. But, it’s a complex area. Only 28% of those 50-64 and 48% of those 65 and older have saved for future care5. Also, 23% think Medicare will cover long-term care, but it’s actually Medi-Cal that does5.
Planning for long-term care in California is tough, but experts like the Super Attorneys of Irvine at businesslawyersirvine.com can help. They can create plans to protect your money and ensure you get the care you need7.
Long-term care costs highlight the need for careful planning. By looking at your options and getting advice from experts, you can plan for your future care. This way, you can protect your finances and ensure you’re taken care of56.
Long-term care planning California: Insurance Options and Medicaid Planning
In California, there are many ways to pay for long-term care8. Long-term care insurance can help cover costs for nursing homes, assisted living, or care at home8. But, nursing home care can cost thousands of dollars a month, quickly using up savings8. Medicare doesn’t pay for long-term care, except for up to 100 days of skilled nursing care per illness8.
Medi-Cal, California’s Medicaid, is key for long-term care8. It covers nursing home care for those with low income and high medical bills8. To get Medi-Cal, you need to go through legal and financial planning, often with an elder law attorney’s help8. Getting Medi-Cal can take time, and there’s a 30-month look-back period for asset transfers, which could affect your eligibility8.
Choosing a nursing home means looking at things like accreditation, location, staff, food, and how happy the residents are8. It’s wise to talk to an elder law attorney before you need Medi-Cal, to protect your assets and get the most benefits8.
According to recent data9, Medicare covers up to 100% of skilled nursing care for the first 20 days, then requires a co-payment for days 21-1009. After 100 days, Medicare stops covering nursing home care9. Starting January 1, 2024, Medi-Cal won’t count assets when checking eligibility, making it easier for more people to get benefits9.
Long-term care programs in California have limited spots10. For example, the Assisted Living Waiver has about 7,000 spots in 15 counties each year10. The Multipurpose Senior Services Program Waiver has around 11,000 spots in 45 counties yearly10. Knowing these limits helps with planning and getting advice from experts like the Super Attorneys Of Irvine at businesslawyersirvine.com10.
“Navigating the complexities of long-term care planning in California requires expertise to ensure the chosen options align with your overall estate plan.”
Innovative Estate Planning Strategies
The team at Sandoval Legacy Group is an expert in creating estate planning strategies for California. They focus on protecting your assets and planning for your future11. They use tools like irrevocable trusts and life estate deeds to keep your estate safe and meet your care needs.
Working with a skilled estate planning attorney is crucial12. They guide you through complex legal and financial issues in long-term care planning. At Gilfix & La Poll Associates LLP, experienced lawyers have helped many families with elder law and estate planning.
The Role of an Estate Planning Attorney
An attorney in elder law can offer deep knowledge in long-term care planning12. They help you look into insurance options and Medi-Cal planning. They also create plans to protect your assets and meet your care needs11. With their help, you can feel secure about your future.
“The team at Gilfix & La Poll Associates LLP have been pioneers in Elder Law & Estate Planning, serving thousands of families in the community and helping them navigate the intricate world of long-term care planning.”12
Conclusion
When you’re dealing with long-term care planning in California, getting help from legal experts is key. Sandoval Legacy Group is known for their skill in estate planning, probate, and elder law. They offer the caring support you need to plan for your future13. If you live in Newport Beach or Southern California, talking to these experts can make navigating long-term care options easier. They can guide you through everything from Medi-Cal planning to estate planning13.
Starting your long-term care planning in your 50s or 60s can save you money and lower insurance costs14. It’s important to consider health care, finances, and legal advice together. This ensures your long-term care needs are covered14. It’s also wise to update your plan as your situation and the laws change.
At the core of successful long-term care planning is the knowledge of experts like those at Sandoval Legacy Group13. They know the Medi-Cal program well and can help you make smart choices. They ensure you get the resources you need to protect your assets and keep your quality of life good. Trust the Super Attorneys Of Irvine at Sandoval Legacy Group to help you with long-term care planning and secure your future.
FAQ
What are the long-term care needs for people in California?
How is long-term care typically funded in California?
What options are available for funding long-term care in California?
How can an estate planning attorney help with long-term care planning in California?
Source Links
- https://sandovallegacygroup.com/long-term-care-planning-essential-for-southern-californians/
- https://www.dhcs.ca.gov/individuals/rureadyca/Documents/planningforlongtermcare_2015_1.pdf
- https://www.fidelity.com/viewpoints/personal-finance/long-term-care-planning
- https://www.caregivercalifornia.org/2023/10/24/long-term-care-planning-what-is-it-and-how-to-get-started-today/
- https://www.kff.org/health-costs/poll-finding/the-affordability-of-long-term-care-and-support-services/
- https://www.10news.com/the-cost-of-care/the-cost-of-care-planning-to-afford-the-unknown
- https://www.drobnylaw.com/articles/medi-cal-planning-for-long-term-care
- https://sallybergmanlaw.com/lawyer/San-Mateo,-CA_fq2393.htm
- https://canhr.org/overview-of-medi-cal-for-long-term-care/
- https://www.medicaidlongtermcare.org/eligibility/california/
- https://www.plannersearch.org/financial-planning/innovative-strategies-for-addressing-the-long-term-care-challenge
- https://www.gilfix.com/
- https://harrisandplottel.com/what-you-should-know-about-medicare-medi-cal-long-term-care-planning/
- https://desertlawgroup.com/blog/when-is-the-right-time-to-start-long-term-care-planning/