In addition to estate planning and financial planning, advisors now need to add a long term care plan to the services they offer their clients, according to Carolyn McClanahan, a CFP and physician in Jacksonville, Florida.

That’s because waiting until a client becomes elderly often leads family members to make bad decisions under duress while a long term care plan written in advance can define the logistics and provide a smoother transition into old age.

“People are spending a lot of money because they are too reactive,” Dr. McClanahan told Financial Advisor about why she advocates for creating a long term care plan. “They aren’t thinking about what aging will look like.”

Dr. McClanahan told a roomful of financial advisors in attendance at the FPA Metro New York 20th Annual Forum Agenda yesterday at Convene on 3rd Avenue in Manhattan that a long term care plan is best packaged as an adjunct to an estate plan.

“You can't ever predict the unknown unknowns,” she said following her speech. “The key is creating a culture of transparency within the family, which will make them more resilient around those unknown unknowns.”

According to Dr. McClanahan, the processes to a long term care plan include four components:

No. 1: Living transitions. Living transitions involve helping clients decide whether they will age in place at home until they die, or move into a dementia proof, age friendly home, an assisted living facility, a continuing care retirement community or a multigenerational community.

“Social isolation is a huge factor in aging and technology, such as an internet camera, is how the elderly stay safe aging at home,” said McClanahan, director of financial planning with Life Planning Partners.  “Home maintenance is typically dumped on relatives nearby, which is why family agreements are important to prevent feuds.”

No. 2: Driving transitions. Driving transitions can be a topic of conversation more easily broached by recommending a driver safety course, such as AARP’s Smart Driver. Driving tests can determine whether an older client is unsafe at the wheel due to medication or visibility, for example, according to McClanahan. 

“One of the perks of passing the AARP test is getting a reduction in your car insurance payment,” McClanahan said. “But when a client is no longer able to drive, the long term care plan details what their transportation options are.”

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