Part Two: Long-Term Care, MaineCare, and Looking Ahead
In Part One of our New Year estate planning checklist, we focused on organizing documents and reviewing the foundation of your plan. In Part Two, we turn to long-term care planning, asset protection, and preparing for the realities many Maine families face as they age.
Planning early, even when you are healthy, gives you more options and greater peace of mind.
Step 6: Evaluate Long-Term Care Risks
Many people assume estate planning is only about what happens after death. In reality, planning for incapacity and long-term care is just as important.
Ask yourself:
- Who would make decisions if I could not?
- How would long-term care be paid for?
- Would my spouse or family be financially protected?
In Maine, the cost of nursing home care can quickly exceed what most families expect. Addressing these risks early allows for better planning strategies.
Step 7: Review MaineCare Eligibility Concerns
MaineCare plays a major role in long-term care planning, but eligibility rules are strict and include a five-year lookback period. Gifts, transfers, and poorly planned asset changes can create penalties that delay benefits when care is needed most.
This is an area where timing matters. Reviewing your finances at the start of the year can help identify:
- Assets that may need protection
- Prior gifts that could cause penalties
- Planning opportunities that are still available
Waiting until a crisis often limits options and increases stress for the entire family.
Step 8: Consider Asset Protection Strategies
Protecting your home and savings is a key goal for many Maine residents. Depending on your situation, planning tools may include:
- Trust-based planning
- Proper titling of assets
- Long-term care strategies designed to preserve resources
Every family’s situation is different, and there is no one-size-fits-all solution. A thoughtful review early in the year allows for customized planning rather than rushed decisions.
Step 9: Coordinate with Your Professional Team
Estate planning works best when your legal, financial, and tax professionals are aligned. The start of the year is a good time to confirm that everyone is working from the same information.
This may include:
- Updating financial advisors
- Confirming tax planning strategies
- Ensuring beneficiary designations match your estate plan
Coordination helps prevent conflicts and ensures your plan functions as intended.
Step 10: Make This the Year You Take Action
Many people know they should review their estate plan, but they put it off because it feels overwhelming. Breaking the process into steps makes it manageable.
Even small actions taken now can prevent major problems later. Starting the year with a clear plan gives you confidence that your family, your assets, and your wishes are protected.
Ready to Take the Next Step?
If you are unsure whether your current plan still works, or if you have never created one, the New Year is an ideal time to begin. Thoughtful estate planning today can provide peace of mind for years to come.
Call us at (207)848-5600 for a consultation!
