“Health care costs today affect wealth transfer tomorrow,” a Nationwide article cautions wealth advisors. “Though a great generational wealth transfer is coming, health care spending could diminish what loved ones receive.”
As they enter their retirement years, clients start to think more about how the transfer of their wealth may provide for the future financial security of their children, grandchildren and other loved ones, the authors admit. The problem – rising out-of-pocket costs for medical treatment and the probability of needing long-term care later in life increase the likelihood that most of a client’s life savings could be wiped out during their lifetime, leaving little or nothing to transfer to their children or other beneficiaries. Meanwhile, because there is a significant gap in accumulated wealth between older and younger generations (in the U.S., baby boomers control eight times the wealth of millennials, the authors note), older generations are concerned more than ever about leaving funds to younger generations.
The danger, Nationwide warns: “The potential for retirees in older generations to spend down their wealth, specifically on health care and long-term care costs, poses a substantial risk for younger generations who may be counting on inheritances to help them reach financial security.”
At Geyer Legal, where, since 1999, our estate and elder law attorneys have been helping Indiana families plan for life’s unexpected twists and turns, we know. The narrowing choices facing long term care insurance policyholders often affect our clients’ decisions about gifting to family members as well as decisions on charitable giving. Our goal, as always, is to help clients establish a plan for lifelong care that does not deplete all of their hard-earned assets.
With deep experience and an understanding of the complex system of Medicaid, we guide clients through the process where appropriate, endeavoring to preserve as many assets as possible for younger generation heirs.
“Estate planning assumes you die. Health planning assumes you live,” John Samuels wryly observes in Forbes.
At Geyer Legal, we agree. As Indiana elder law attorneys, one of our primary goals is helping clients avoid conflict and misunderstanding around caregiving issues, often hosting family conferences to share important information and create advance plans for dealing with potential health issues.
– by Katrin Hodson, Attorney with Geyer Legal Group
