Financial Planning Building care into your long-term plans

Many high-net-worth individuals and their families spend decades building and protecting their wealth, and yet, it’s easy for one critical area of legacy planning to remain unaddressed or under-addressed: longevity (or long-term care) planning. Whether you’re planning for yourself or for an aging parent, when a crisis arises with a loved one, it can cause emotional strain, disrupt financial strategies, and lead to unexpected, rapid expenses. With proactive planning, however, families can maintain stability, honor everyone’s intentions, and reduce stress for the whole family.

In this episode of the Truist Wealth podcast “I’ve Been Meaning to Do That,” Jacqueline Parks, an elder planning specialist and Truist Wealth regional director of advice and planning, said, “There’s a clear need for more intentional conversations around long-term care. Especially in affluent families, there’s often an assumption that wealth alone will smooth the process. But in reality, without a plan, even significant assets can be depleted or misallocated.” Parks covers some of the most important considerations that individuals and families should take into account when developing a long-term care plan.

Cognitive decline doesn’t just impact daily routines. It can jeopardize a family’s financial and governance structures if the proper documents aren’t in place. Powers of attorney, healthcare directives, and trust instructions should be finalized while a family member can still express their clear intent.

“The discussion needs to happen before there’s any sign of decline, not during a crisis,” Parks says. “When we talk about preserving a legacy, that means preserving clarity, who’s in charge, what the wishes are, and how the assets will support them.” Avoiding the conversation can lead to confusion and urgent, uncoordinated decisions in the event of a stroke, fall or other health crisis. Having these legal guardrails protects both the person having the event and the family from unnecessary stress.

Many affluent individuals start thinking seriously about long-term care after witnessing a loved one struggle through it. “Many clients have watched someone else go through a chaotic situation,” Parks says. “Those stories stay with them, and they value plans designed to prevent the same difficulties for their own families, offering both clarity and peace of mind.”

These moments serve as real-world case studies, and if you plan early enough, you may be able to help an aging family member as well as your own family later. Beyond medical care, successful aging plans should include transportation, social engagement, and maintaining a consistent lifestyle. And while many assume children or spouses will step in as caregivers, that support system may not always be available.

“If you’re a single individual or you don’t have a large family network, then it is really important that you think about these issues and plan ahead for who would step in to manage things for you if you couldn’t do it for yourself,” Parks adds.

Even in close families, assigning financial or medical authority requires thoughtful consideration. Parks advises against defaulting to birth order or naming children jointly. “I would just discourage people from naming children jointly because that can lead to conflict,” she explains. Instead, choose individuals based on their capabilities and availability, and communicate their roles to avoid confusion or resentment.

Where you choose to live in retirement can and will significantly influence the healthcare options available to you. The Medicare policies and tax treatment, along with access to high-end facilities or areas of specialization, differ from state to state. When you choose to live between multiple residences or are considering relocation, you need to assess whether this choice aligns with your healthcare objectives and financial planning.

Families often dismiss long-term care insurance under the assumption they can self-fund. But early planning, ideally in your 50s or early 60s, can preserve other assets and provide crucial flexibility. Chronic conditions, mobility issues, and sensory impairments are common with aging and can escalate care needs rapidly.

“Clients are sometimes surprised by how long these care journeys can last,” Parks notes. “We’ve seen families expect a year of care and end up needing support for three, five, or more. That makes a plan that endures absolutely essential.”

There are other financial considerations beyond paying for care that your Truist Wealth advisor can help you with. High-net-worth individuals are frequent targets for financial fraud and abuse. As cognitive skills decline, distinguishing between legitimate and malicious financial activities can be problematic. That’s why adding trusted contacts, setting account alerts, and scheduling regular advisor check-ins can help families catch issues early.

Additionally, creating a durable power of attorney or revocable trust with transparent oversight adds another layer of protection. Talking openly about scams and financial risks empowers aging loved ones to act cautiously and seek help when they are unsure.

HSAs can be a powerful part of a long-term care strategy. With triple tax advantages, they enable tax-free growth and also permit withdrawals for various medical expenses, including long-term care. Saving HSA funds over time rather than spending them each year can preserve resources for more intensive future care.

“For clients who are eligible, HSAs are a powerful, flexible tool,” says Parks. “We often recommend letting these accounts grow untouched, so they’re available when care expenses rise sharply in the later stages of retirement.”

Any comments or references to taxes herein are informational only. Truist and its representatives do not provide tax or legal advice. You should consult your individual tax or legal professional before taking any action that may have tax or legal consequences.

Whether you’re preparing for your own future or for that of an aging parent, have conversations with a trusted team of professionals to plan ahead. Consider these questions:

• What kind of care is realistic and preferred?
• Are my legal documents and insurance coverage current?
• Who is responsible for care decisions, and do they understand what’s being asked of them?

“This isn’t just about money,” Parks concludes. “It’s about dignity, independence, and preserving the values a family stands for. The earlier you start the conversation, the better the outcome for everyone involved.”