Medicare is a health program initiated by the federal government requiring all persons aged 65 years and above to be covered. It also covers younger people with disabilities and patients suffering from terminal diseases, such as permanent kidney failure and chronic cancer. Estate planning involves legal documentation of all your financial affairs, assets, liabilities, and taxes.
Personal properties, including cars, bank accounts, and insurance covers, are also covered. This guide explores estate planning and Medicare and how they’re related to promoting a healthy lifestyle in old age. According to Trustworthy, estate planning is composed of six aspects: Healthcare Power of Attorney, Wills, Trusts, Guardianship Designations, Beneficiary Designations, and Durable Power of Attorney, which are very crucial, as illustrated below:
A will is a legal document illustrating how you want your property shared among beneficiaries after death. The important aspects of a will are the executor, the trusted person responsible for ensuring your wishes on the distribution of your assets are fulfilled. The beneficiaries are the persons to receive your property; they could be children, spouses, relatives, friends, or charities. A letter should accompany a will, clearly indicating the names of the beneficiaries.
Trusts are wills that permit a trusted executor to manage all your financial affairs and assets before your death due to medical conditions or other factors. These are another very important aspect. Your lawyer will be able to walk you through the entire process.
3. Beneficiary Designations
These are people you wish to receive your estate after your death. Consider protecting your spouse and personal assets. According to Perlin Estate, a SLAT (Spousal lifetime access trust) is the way forward, which says one is permitted to remove $12.06 million from their estate and put it in an irrevocable trust for their spouse. Work with a qualified planning estate attorney to ensure your wish is filled.
4. Guardianship Designations
Where beneficiaries are minors, it’s important to appoint a trusted guardian responsible for caring for them and managing the property until they attain legal age. The lifestyle you desire for them, like good formal education and availability of resources to cater to their basic needs, must be enforced until they can take over their inheritance.
5. Durable Power of Attorney
This legal document allows a person you trust to make decisions on your property, assets, and all financial affairs when you can’t due to ill health. This person must work to ensure you live according to your lifestyle before you are incapacitated.
6. Health Care Power of Attorney
This document authorizes a trusted person to make health and medical care decisions on your behalf in case you’re unable to. They will be a huge part of this process. Your family can speak with them about your estate plan.
A Medicare cover ensures you’re well taken care of and your lifestyle is maintained even in old age. Medicare is divided into four major parts, as illustrated below:
Part A – Hospital Insurance
This insurance policy covers a patient admitted to a hospital. It pays for bills incurred while in the hospital, such as prescriptions, surgery, x-rays, and bills for care provided by professionals like nurses. Elder and Estate Planning Attorneys PA contend that Medicare usually covers one’s stay at a nursing home for 100 days. After that, family members should consider Plan B, which is free to persons with a proven track record of having paid Medicare tax for ten years or whose spouses have or are currently paying Medicare taxes.
Part B – Medical Insurance
This part of Medicare covers all bills incurred outside the hospital, such as doctor’s visits, medical equipment used at home, outpatient preventive care, and nursing care. Based on one’s lifestyle, you’re required to pay a monthly premium for this cover.
Part C – Medicare Advantage
Although the federal government acknowledges each plan, this one is covered by private companies. It covers additional aspects of health like ear loss, eye vision, and dental services. A patient is advised to take part A or B before signing up for part C.
Part D – Medical Care
This part covers all medical prescriptions and can include Part A.
Estate planning is excellent for passing on your legacy to your beneficiaries while avoiding court battles after you’re gone. It’s right to say you pass your lifestyle to them with fewer liabilities because an adequately structured will addresses the issue of taxation, among other things. Besides estate planning, Medicare can keep you healthy as you make decisions for your estate.