Have questions? Get answers for your unique situation.
CALL (844) 412-4222

Blog > Advance Planning > 3 Common Solutions for Long-Term Care Pre-Planning

3 Common Solutions for Long-Term Care Pre-Planning

senior couple signing paperwork
January 27, 2021 Advance Planning

When planning for long-term care, timing is everything. You can either plan ahead and take advantage of multiple different options, or you can wait until you require care and have limited routes to protect your savings. Planning in advance is ideal since it presents more options for preserving your hard-earned assets. Here are some of the most common solutions for pre-planning for long-term care.

Read More: What is Advance Planning?

Which Advance Long-Term Care Planning Solution is Right for You?


1. Long-Term Care Insurance

As long as you are relatively healthy, you may be eligible to purchase a Long-Term Care Insurance (LTCI) policy to cover a future long-term care stay. LTCI offers multiple policy options for you to choose from, but it essentially sets aside a bucket of money that pays out a certain amount to the care facility each month. The best part about LTCI is it can be used for in-home care, an assisted living facility, or a nursing home, allowing you to choose the type of long-term care facility you are most comfortable with.

To purchase LTCI, you pay either a single premium or a monthly premium. The premium amount is dependent on your age, health, and the type of policy you choose. Some policies allow you to add riders to customize your policy, and some may also come with a guaranteed death benefit in the event you do not require long-term care. Once you begin requiring care, your monthly LTCI benefit will commence coverage.

Watch Now: Long-Term Care Insurance


2. Irrevocable Trust

Another great way to protect your hard-earned savings is by funding an irrevocable trust. With the help of an attorney, a trust allows you to reposition your assets in a way that protects them from being depleted by a future long-term care stay. As long as the irrevocable trust is established at least five years prior to requiring care, it will not be considered a countable asset for Medicaid purposes. An irrevocable trust can be funded with:

  • Checking and savings accounts
  • Non-IRA and non-401(k) investment accounts
  • Life insurance policies
  • Real estate
  • Stocks and bonds

While these funds and assets are in an irrevocable trust, you will still have full access to them, but now they are better protected in the event of a long-term care stay.


3. Gifting

Gifting assets is another way to protect your savings in the event you require long-term care. It also ensures you are leaving an inheritance for your children, family members, friends, or organizations you are passionate about. Similar to funding an irrevocable trust, the gifting process must be completed at least five years before you require care. This allows you to safeguard the assets from paying the care facility and helps you avoid a Medicaid penalty period. To make sure the gifting process is done correctly so you don’t jeopardize your future Medicaid eligibility, be sure to work with a legal professional.


Although these are the most common pre-planning options, we always recommend working with a legal professional to determine the best fit for your specific situation. If you would like to learn more about planning for long-term care or getting in touch with a local attorney, don’t hesitate to reach out to our team at Senior Care Counsel. Give us a call at (844) 412-4222. We look forward to connecting with you!

Planning Guide

get more expert
insight with our
free planning guide!



"Paying for Long-Term Care - The Essential Senior Guidebook"

This guide takes a deep dive into the landscape of long-term care and how to pay for it without going broke, including the answers to your top questions surrounding Medicaid.

Planning Guides