Estate plans and life care plans serve different purposes in securing your future. While estate plans primarily address what happens to your assets after death, life care plans focus on maintaining your quality of life as you age or face health challenges.
Here’s a basic outline of each type of plan and how you can use them in concert to prepare for the future.
What Is an Estate Plan?
An estate plan creates a road map for the distribution of your assets after you pass away. A comprehensive estate plan typically includes:
- Wills or trusts directing how your property will be distributed, which can help your estate avoid probate
- Power of attorney designating someone to make financial decisions if you become incapacitated
- Medical directives to specify your health care preferences if you cannot communicate them or make medical decisions yourself
- Guardianship designations to name those who will care for your minor children if necessary
An effective estate plan will protect your assets, minimize estate taxes, and ensure your wishes are carried out while reducing the burden on your loved ones during a difficult time.
What Is a Life Care Plan?
A life care plan takes a more holistic approach to planning. Rather than focusing solely on asset distribution after death, long-term care planning addresses your overall well-being as you age or face health challenges. A life care plan typically includes provisions for:
- Health care needs, including current and anticipated medical treatments for chronic illnesses, medications, and therapies
- Living arrangements as your needs change, as well as what family home modifications might be necessary for in-home care
- Plans for how to fund your personal care and manage your financial affairs without depleting your assets, including Medicaid planning
- Support services and assistance you might need with daily activities
Life care plans are particularly valuable for seniors, individuals with disabilities, or those who have suffered serious injuries.
Key Differences Between Estate Plans and Life Care Plans
Some of the main differences between estate plans and life care plans include:
- Focus – Estate plans concentrate on asset protection and distribution, while life care plans address concerns regarding your quality of life.
- Timeframe – Estate plans primarily activate after death, while life care plans work during your lifetime.
- Components – Estate plans consist mainly of legal documents, while life care plans incorporate health care, housing, and lifestyle elements.
Can You Have Both a Life Care Plan and an Estate Plan?
Absolutely. Having both plans creates a comprehensive approach to future planning. Your estate plan will ensure your assets are protected and distributed according to your wishes, while your life care plan will help maintain your quality of life as circumstances change. Together, they provide complete coverage for both your living needs and your legacy.
Get Help from Our Estate Planning Lawyers Now
At Peakstone Law Group, formerly known as Patterson Weaver, we can help you determine which planning approach best suits your unique situation. Our experienced attorneys are ready to guide you through creating estate planning documents that reflect your wishes and protect what matters most to you. Let us help you and your family plan for the future.
Contact us today for a free consultation with an estate planning attorney at our law firm.