November: A Month Full of Awareness — and a Reminder to Plan Ahead

Did you know that November is packed with awareness initiatives? It’s National Hunger Awareness Month, National Vegan Awareness Month (my sister’s favorite), National AIDS Awareness Month, Diabetes Awareness Month, and — one that’s especially close to our hearts — National Long-Term Care Awareness Month.

With so much focus on health and well-being, it’s the perfect time to talk about something we see misunderstood all too often — long-term care (LTC).

There’s no shortage of myths out there, and many people don’t start thinking about it until it’s too late. So this week, we’re taking a closer look at the three biggest misconceptions we, as financial advisors, hear when it comes to long-term care — and what you really need to know to protect yourself and your family.

🏥 Misconception #1: “Long-Term Care Means Nursing Homes”

When most people hear the phrase long-term care, they immediately picture a nursing home. But here’s the truth — most long-term care happens at home or in assisted living facilities, not nursing homes.

In fact, the majority of people prefer to remain in familiar surroundings for as long as possible. They want to stay in their own homes or a supportive assisted living environment rather than move to a nursing facility.

Modern long-term care is about maintaining quality of life and independence, not confinement. Whether it’s in-home caregivers, assisted living, or community-based care, today’s long-term care landscape looks very different from the outdated images many people still have in their minds.

💰 Misconception #2: “I Can’t Afford Long-Term Care Insurance”

It’s true — traditional long-term care insurance can be expensive, and for some, it might not be the right fit. But here’s the good news: there are smart ways to self-insure for long-term care without paying hefty annual premiums.

Think of it as leveraging your existing assets. You can allocate a portion of money you already have into a vehicle that gives you flexibility — funds you can access at any time, but that also provide additional coverage if you ever need long-term care.

If you don’t end up needing that care, the money goes to your beneficiaries.

That’s what we like to call a win-win-win:

• You keep access to your money.
  
• You have coverage if you need it.
  
• Your loved ones benefit if you don’t.
  

These plans can be structured in a variety of ways — from higher long-term care coverage to increased death benefits or even added accumulation value. The key is making sure your income plan for retirement is solid first, and then using any excess assets strategically to build that safety net for care.

If you want to see an example, go back and check out one of our past Power Hours, where we walk through a real case study showing how this type of self-insured strategy works in practice.

⚖️ Misconception #3: “If I Give My Money Away or Put It in a Trust, It Can’t Be Used for Long-Term Care Costs”

This one comes up a lot, and it’s a tricky area.

Many people believe that if they give away their assets or put them in a trust, those funds will be “safe” from long-term care costs. But it’s not that simple.

There’s currently a five-year lookback period when it comes to Medicaid eligibility. If you give away money or move it into a trust within five years before you need care, Medicaid can still count those assets as yours and deny coverage.

Even if you successfully transfer assets to a child, those funds now become part of your child’s estate — meaning they’re subject to your child’s creditors, lawsuits, or divorce settlements.

While a revocable living trust can help protect assets from probate and other creditors, it does not automatically shield them from long-term care costs. To truly protect assets, you need to plan well in advance — and even then, no strategy is 100% foolproof.

That’s why working with an experienced estate planning attorney (and a coordinated financial team) is so important. Together, we can make sure your plan keeps your assets protected, your care choices intact, and your wishes respected.

🧩 Putting It All Together: Smart Planning = More Control

The goal of long-term care planning isn’t just to preserve wealth — it’s to preserve choice.

It’s about making sure that if you ever need care, you can decide where and how you receive it. It’s also about ensuring your family isn’t left scrambling to figure things out in a crisis.

By planning ahead, you can:
✅ Maintain control over your care and your assets.
✅ Reduce financial stress for your loved ones.
✅ Protect your legacy and your independence.

Whether you’re exploring long-term care insurance, self-insuring, or estate planning tools like trusts, the key is to start early and get professional guidance.

💬 Final Thoughts

During National Long-Term Care Awareness Month, take a moment to review your own plan — or start the conversation if you haven’t yet.

If you’re not sure where to begin, just reach out to discuss your personal situation.

This is about more than just money. It’s about preserving your independence, protecting your family, and securing your peace of mind.

The only way to do that — is to plan now.