Estate planning is not just about deciding who will inherit your assets after you are gone. It is also about making arrangements for your own future, especially as you grow older. Long-term planning is a necessary part of this process.
Thinking about the future can sometimes feel overwhelming, but having a comprehensive long-term plan in place can bring peace of mind. It can ensure that you will receive the care you need and that people will respect your wishes, even if you become unable to make decisions for yourself. Here is what you need to know about long-term planning in your Minnesota estate plan.
Long-term financial planning
As part of your estate plan, you should take steps to secure your financial future. This includes identifying potential sources of income in your retirement years, such as Social Security, pensions and retirement accounts. Also, consider the possible need for long-term care, which can be expensive. Long-term care insurance might be an option to help cover these costs.
Long-term healthcare planning
In addition to financial considerations, long-term planning involves making decisions about your healthcare needs as you age, including end-of-life care. Two essential documents for this aspect of long-term planning are a healthcare directive and a durable power of attorney for healthcare.
The healthcare directive specifies what kind of medical treatment you want or do not want if you cannot communicate your wishes yourself. The durable power of attorney for healthcare designates a trusted person to make healthcare decisions on your behalf if you become incapacitated.
Reviewing and updating your plan
Your long-term planning is not a one-time event. You should review your plan regularly and make necessary updates to reflect changes in your circumstances, such as a significant change in your health or financial situation.
Long-term planning allows you to have control over your future, guiding others to help meet your personal, financial and healthcare needs according to your wishes. By taking the time to plan now, you are taking an essential step toward protecting yourself and your loved ones in the future.
