Long term care is the financial meltdown issue for the middle class.  Estate planning that focuses on avoiding probate is handling the wrong issue.  A proper estate plan has to consider the possibility of spending everything on a nursing home, and having nothing left to pass on to the next generation.  Getting rid of all your assets is not the right move, either, because you have to be able to pay for appropriate care at an appropriate setting..


Long term care can involve care at home, care in assisted living, or care in a nursing home.  Estate planning that ignores any one of these options can be shortsighted.  Because laws have tightened up in the past few years, last-minute planning for assets, known as Medicaid planning, leaves older persons with fewer options than advance planning.  The financial aspect of the long term care problem is somewhat alleviated by Medicaid planning, but not everybody goes into a nursing home, so a financial plan has to consider covering the costs of care at home or care in an assisted living facility. Since I view the long term care problem as an insurance failure first, and a legal problem second, I usually suggest that clients review long term care insurance if the premium is affordable and they are insurable.

http://www.longtermcarelink.net/eldercare/long_term_care.htm