Estate & Retirement Planning Case Study No. 2: Planning for a Long Comfortable Retirement Into Your 90s

Kathleen and her husband Jack are a professional couple in their 50s with no children or close family members. They realize that they have the resources to last the rest of their lives.

They find comfort in knowing they will not have to rely on others to make decisions about their future care. They are designing a home in Tennessee in a senior community with swimming pool and clubhouse, where they hope to live out their retirement in comfort. The new home will employ Universal Design features, such as wide doorways and seats in the shower. As they age, their home is designed for their safety. They plan to bring in health care and home maintenance services as one or the other needs help. This is important because Alzheimer’s runs in Jack’s family. Should they need skilled nursing care, Kathleen has arranged for their ling-term care policies to cover skilled nursing care.

Financial considerations for Kathleen and Jack

  • Independent living
  • Universal Design
  • Socialization outlets
  • Home health care
  • Skilled nursing care for final days

Other considerations

  • What estate planning issues do Kathleen and Jack still need to address?
  • Is their estate plan as well planned as their housing and lifestyle arrangements?
  • What is the plan (in the event that one spouse requires skilled nursing care or passes away) for the surviving spouse? What happens if they both need assistance? What is the plan should Kathleen’s death precede Jack’s?
  • Have Kathleen and Jack considered a Continuing Care facility? Do they have the financial resources for that option?
  • What is the plan should Kathleen pre-decease her husband? Who will serve as medical power of attorney for the surviving spouse? Are there nieces, nephews or cousins to assist in this capacity?

Action steps that Kathleen, Jack and any family members can take

  • Review estate plan annually
  • Research which expenses are covered under Kathleen’s long-term care policy, should skilled nursing care required

Reference: Aging At Its Financial Implication; Legg Mason in collaboration with Center for Innovative Care in Aging as the Johns Hopkins School of Nursing.

Kindly visit our Estate Planning & Elder Law websites for more information on this topic.