Five essential steps to create a long-term care plan in your 30s

By: Lauren C. Enea, Esq.

Your 30s mark a time of major life decisions — marriage, buying a home, starting a family, and/or advancing your career. While these milestones demand attention, planning for your future care deserves equal consideration. Even I, as someone who practices elder law and long-term care planning for a living, have struggled to make this a priority. Yet, starting your long-term care planning at a younger age offers more options and better financial benefits than waiting until later in life. Here are five steps to help you create a comprehensive health care plan now to ensure that you are sufficiently covered in your golden years:

1. Begin with health care decisions
   Creating a health care proxy lets you choose someone to make medical decisions on your behalf if you cannot do so yourself. It is crucial to pick someone you trust, who understands your wishes and values regarding medical treatment. Technically, everyone over the age of 18 should have a health care proxy. It is the only way to ensure that a trusted individual is at the reigns if you can no longer make medical decisions yourself due to a medical condition or diagnosis (such as Alzheimer’s Dementia).
2. Build your emergency fund
   Financial stability forms the foundation of long-term care planning. Your emergency fund should cover:
   • Six months of living expenses
   • Insurance deductibles and co-payments
   • Potential home modifications
   • Basic medical equipment
   • Temporary caregiving costs

   A robust emergency fund provides crucial flexibility during unexpected health challenges.

3. Research insurance options
   Look into long-term care insurance while premiums remain lower for your age and health. Compare different policies and providers to find coverage that matches your needs and budget. Consider hybrid policies or long-term care insurance riders that can be added to whole life insurance policies.
4. Create your power of attorney
   Designate someone to handle your financial matters if you become incapacitated. This person will pay your bills, manage your investments, and make important financial decisions on your behalf. A power of attorney is often a lifeline to Medicaid eligibility, asset protection planning, probate avoidance, and more in emergency situations where you can no longer handle financial decisions and tasks on your own. It may also avoid the need for a Guardianship proceeding in the event of incapacity. It is important to ensure that this document is broadly drafted and includes appropriate gifting authority that aligns with your long-term care goals.
5. Document your care preferences
   Write down your preferences for future care, including desired living arrangements and medical treatments. Share these wishes with your family, power of attorney, and health care proxy to ensure everyone understands your goals.

Start securing your future today
Long-term care planning might feel overwhelming. Breaking it down into manageable and actionable steps makes the process easier. Your choices today shape your care options tomorrow. Consider working with an experienced elder law attorney who can guide you through these important decisions to make the process less stressful.