At the intersection of healthcare considerations and financial planning, your estate planning clients implement strategies to address medical/healthcare needs while preserving and distributing their assets.  That convergence may also create the need for extended care contingencies in their estate plan due to the interdependency of wealth and the potential financial impact of healthcare and Long-Term Care (LTC) costs on their comprehensive planning.  Here are some key points you might consider when discussing the convergence of health and wealth in your client's estate planning:

Health Care Directives:   Most Americans don't understand how your expertise can maximize the various legal documents of the estate plan should they become incapacitated or cognitively unable to direct their affairs.  Preparing clients for seamless transitions at any age ensures medical treatment, care preferences, and healthcare directives align with their broader financial planning objectives.

Quantifying The LTC Need:  Your counsel is rooted in the reality that the likelihood of needing LTC increases as your clients age, that care is costly and generally excluded by Medicare, and that those costs can quickly deplete a client's assets without proper planning.  Quantifying your client's potential LTC needs as a starting point can be a very effective way to incorporate LTC into the estate plan, and we recommend utilizing a tool called the Health Analysis and Longevity Optimizer, or HALO.  A HALO Report will allow you and your clients to use personalized data that could assist in determining the structure of various trusts to protect assets, the impact of LTC during the look-back period, how to position Medicaid in your planning, and whether an insurance solution for should be a consideration for risk mitigation. 

Funding Healthcare Expenses:  Powerful research from Fidelity estimates indicates the average couple retiring in 2023 will spend $315,000 for healthcare expenses not covered by Medicare during retirement, and that estimate excludes potential LTC expenses.  Using that data could help clarify why clients would want to consider allocating specific assets/ funds within the estate plan to fund this future liability and how your proactive planning recommendation will avoid "crisis planning" when care is needed and protects assets intended for heirs,  beneficiaries, or philanthropic purposes. 

Tax-Efficiency:  Most advisors cannot provide your level of legal and tax guidance for healthcare expenses, and they fail to explain the effect of "IRMAA" and your clients' higher Modified Adjusted Gross Income on Medicare Part B and Part D premiums.  Your counsel also applies to the tax deductibility of certain medical expenses or the tax treatment that can impact other elements within an estate plan, as your role positions you to direct the collaboration of financial advisors, tax specialists, LTC strategists, and Medicare experts, to effectively align the different elements of the estate plan.

Legacy Planning and Charitable Giving:  The convergence of health and wealth planning also encompasses legacy planning and charitable giving when clients wish to allocate a portion of their estate to support medical research or healthcare-related charities as part of their philanthropic goals.

As health and financial circumstances change over time, you know how vital it is to review and update your client's estate plan and ensure it remains relevant and aligned with their health and wealth considerations.  The convergence of health and wealth in an estate plan emphasizes the importance of holistic planning that addresses healthcare needs and financial objectives.  Proactively integrating these elements can provide peace of mind to prepare clients to age gracefully while creating multi-generational financial security.

We look forward to helping you achieve your clients' Long-Term Care Planning goals.....

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