Don’t Count On Luck

Each year, on the seventeenth day of March, we celebrate the patron saint of Ireland on the anniversary of his death with parades, special meals, green clothes, and other long-standing Irish traditions.

One phrase that comes up regularly around St. Patrick’s Day is “Luck of the Irish.” Historians find this phrase a little ironic given that, for most of history, the Irish people have been somewhat unlucky. In fact, if you study the life and ministry of St. Patrick himself, you’d find that he suffered from a lot of bad luck himself. But the phrase originated out of a stereotype. 

Many Irish and Irish Americans were miners—the kind who dug for gold, not the young people we often seek to protect with our estate plans—and it seemed that a disproportionate number of those Irish miners struck it rich by finding gold. In truth, these miners found gold through prudent planning, hard work, and perseverance; nevertheless, the phrase stuck.

When it comes to estate and long-term care planning, the worst thing you can do is rely on luck. Bad things happen to good people, and relying on luck to get through those bad things often leads to even worse outcomes. There is nothing we can do to completely avoid many of the negative things that can strike during our lifetimes. Sudden (and progressive) illnesses, accidents, disability, and eventually the need for long-term care can impact the best of us. And of course, death will come for everyone in its own time. No, we can’t completely avoid these things in life, but we can plan for them to ensure that, no matter what life brings, we are as prepared as we can be.

The first, and in many ways simplest, thing you can do to prepare for hard times is ensure you have a solid set of power of attorney documents in place. Remember that all power of attorney documents are not created equal. Make sure you get yours from someone who knows what he or she is doing. Relying on forms you might print off the Internet is just tempting fate in that they often do not do what you need them to do when the need arises. A good set of power of attorney documents will handle both business matters and healthcare issues and will be extremely thorough in coverage.

The second, and perhaps the most complicated, thing you can do to prepare for hard times is gain an understanding of the rules relating to long-term care benefits and make plans to use those rules to your benefit. Everyone knows these days that the cost of long-term care, including home care, assisted living facilities, and nursing homes, has skyrocketed. 

Very few people can cover the costs of long-term care using only their monthly income, and for most, the need for long-term care means liquidating and spending down assets at a rapid pace. For many people, the idea of going broke in a nursing home and having nothing to leave for the younger generation is one of their greatest fears.

The good news is that it doesn’t have to be this way, but if you rely on luck to get through this season of life, the worst-case scenarios you’ve heard about are probably on the table. Make your own luck by working with an expert in the field to protect the people and things that matter most to you.

The third thing you can do to prepare for the hardest of times is take prudent steps to keep your estate out of probate court at the time of death. It is not difficult to avoid probate court if you know what you’re doing, but once again, luck won’t cut it. There are three or four best practices when it comes to probate avoidance, but relying on the basics, like a last will and testament—or worse, simply doing nothing and hoping for the best—just won’t cut it.

The Irish miners who found gold weren’t just lucky. They made their own luck through hard work, perseverance, and good planning. Follow their example and give yourself the best chance for the optimal outcome when it comes to your estate and the possibility of needing long-term care.