Yes, It Can Happen To You (Not Just Your Neighbor)

It is understandable that none of us want to think about being incapacitated one day. There is nothing wrong with wanting to be independent and able to take care of ourselves for our whole life. However, the danger exists in not acknowledging the possibility that our wish for a life of independence may not come true and therefore not putting plans in place to deal with that possibility. As a wise advisor was recently discussing with me, a lack of planning for incapacity impacts both you and the people who love you. Without plans in place to pay for the assistance needed when incapacity occurs, both you and your family have to reevaluate living arrangements and financial arrangements.

Many people don’t want to acknowledge the possibility of incapacity because they don’t want to acknowledge the possibility of having to move into the “nursing home.” If they don’t think about it, then it won’t happen. However, by not thinking about it and putting contingent plans in place, the chances of ending up in a “nursing home” increase instead of decrease. This is because in many states, Medicaid assistance favors skilled nursing care instead of community based care. So, if you haven’t put financial options in place to pay for your care through home health or assisted living communities, you have increased your chances of having to default into Medicaid (with its skilled nursing bias) for help with your care.

As unsettling as the thought of losing your independence may be, don’t shy away from a discussion with your family, your financial advisors and your attorney about what you can do to proactively plan for such a possibility. Being proactive is one of the best ways to give yourself and your family the options you want should the unthinkable actually happen to you.