Making Informed Decisions: Avoiding Common Pitfalls in Elder Law Planning
Why Elder Law Planning Matters Now More Than Ever
If you're caring for an aging parent or planning for your own future, you already know how overwhelming it can be to navigate the world of long-term care, Medicaid, estate planning, and elder law. You want to do what's best—protect assets, ensure proper medical care, and avoid unnecessary legal or financial roadblocks. But without a clear plan, families often find themselves making rushed, expensive decisions in times of crisis.
At my firm, I've seen too many families blindsided by legal issues they never expected. A loved one suddenly needs nursing home care, and they realize Medicare won't cover it. An adult child assumes they can manage their parent's finances, only to discover they need legal authority to do so. Families put off planning, thinking they have time—until they don't.
The good news? With the right legal strategies, you can avoid these common mistakes and protect your family's future. In this article, I'll walk you through real-life scenarios of what can go wrong—and more importantly, how to avoid these pitfalls so you're prepared, not panicked.
Pitfall #1: Thinking Medicare Covers Long-Term Care
Meet Susan. She always assumed that when her mother, Margaret, needed nursing home care, Medicare would cover everything—after all, Margaret had paid into the system her entire life. But when Margaret suffered a fall and needed skilled nursing care, Susan quickly learned that Medicare only covers short-term rehabilitation (up to 100 days) and does not pay for long-term nursing home care.
Margaret had savings, but without proper planning, she was at risk of spending everything on care—leaving little for her own needs and nothing for her family's future.
The Reality:
Medicare only covers short-term rehabilitation—not ongoing nursing home care. (
In North Carolina, the average cost of nursing home care is between $8,000 to $10,000 a month—draining savings rapidly.
Without a Medicaid strategy, families often spend down assets unnecessarily, losing financial security.
Moreover, a survey by the Kaiser Family Foundation found that nearly 45% of adults aged 65 and older mistakenly believe that Medicare would cover long-term nursing home care, highlighting a widespread misconception. But, the reality is that Medicare only covers up to 100 days in a skilled nursing home. After that, the cost falls upon the resident to pay.
How to Avoid It:
A well-crafted elder law plan can protect assets while ensuring Medicaid eligibility when needed. There are legal strategies—such as irrevocable trusts and asset protection planning—that can safeguard savings while ensuring access to care. But these strategies need to be implemented before a crisis happens.
Action Step:
If you or a loved one may need long-term care in the future, consult an elder law attorney now to explore Medicaid planning and asset protection strategies.
Pitfall #2: Delaying a Power of Attorney Until It's Too Late
James never thought twice about legal documents—until his father, Robert, had a stroke. Suddenly, Robert was unable to make decisions, and James needed to manage his father's finances, pay bills, and handle medical care. But because Robert had never signed a durable power of attorney (POA), James had no legal authority to act.
What followed was a stressful and costly court process. James had to petition for guardianship—spending months and thousands of dollars just to gain control over his father's affairs. If Robert had signed a POA ahead of time, James could have stepped in immediately without legal hurdles.
The Reality:
Without a power of attorney, even spouses and adult children may not be able to make medical or financial decisions.
Once someone loses capacity, they can no longer sign a POA—leaving families no choice but to go through an expensive court process.
A power of attorney should be created while a person is still healthy and competent.
How to Avoid It:
Every senior should have two essential legal documents in place:
A Durable Financial Power of Attorney – This gives a trusted person (often an adult child or spouse) the ability to handle finances, pay bills, and manage assets if the person becomes incapacitated.
A Healthcare Power of Attorney – This allows a designated person to make medical decisions if the individual cannot communicate their wishes.
Action Step:
If you or your loved one don't have these documents in place, schedule a consultation immediately to get them drafted properly.
Pitfall #3: Relying on DIY Estate Planning
Linda thought she had covered all her bases. She used an online estate planning service to create a will and power of attorney for herself and her husband. It seemed simple enough—she answered a few questions, downloaded the documents, and printed them out. She felt confident she had done the right thing.
But when Linda's husband, George, was diagnosed with Alzheimer's and needed long-term care, she discovered her DIY documents had major flaws:
The power of attorney didn't include necessary provisions for Medicaid planning.
The will wasn't properly executed under North Carolina law.
The estate plan didn't account for strategies to protect their home and savings from nursing home costs.
Now, Linda had to spend thousands on legal fees to fix what could have been done correctly the first time.
The Reality:
Generic, one-size-fits-all documents don't account for complex elder law issues like Medicaid planning.
Many DIY wills and POAs are not state-specific and may not hold up in court.
Without proper legal guidance, families often miss out on asset protection opportunities.
Many POAs lack the language necessary to execute elder law strategies
How to Avoid It:
Estate planning and elder law are not "do-it-yourself" tasks. A knowledgeable attorney ensures that documents are tailored to your needs, comply with state laws, and include key provisions for long-term care planning.
Action Step:
If you've created DIY estate planning documents, have them reviewed by an elder law attorney to ensure they meet your needs and are legally sound.
Take Control of Your Future—Before a Crisis Hits
Elder law planning isn’t just about paperwork—it’s about protecting your loved ones, preserving your assets, and ensuring that your wishes are honored in the most critical moments of life.
Too often, families come to me after a crisis has already struck. A parent has had a medical emergency, and their adult children are scrambling to figure out how to pay for care. A senior suddenly needs a nursing home, and their family is shocked to learn that Medicaid won’t immediately cover the cost without proper planning. An aging spouse loses capacity, and their partner is left fighting through a lengthy legal process to access financial accounts.
You Have Two Choices:
Proactively plan now, while you have time and control over your options. This means structuring assets to protect against nursing home costs, ensuring your legal documents are in place, and giving your family clarity on your wishes.
Wait until a crisis happens and risk making rushed decisions under pressure—often with fewer options and higher costs.
The reality is that long-term care planning is not just for the elderly—it’s for anyone who wants to ensure that their financial security and legacy are protected. Whether you’re in your 50s and planning ahead, or you’re a caregiver for aging parents, the best thing you can do is take action before it’s too late.
What You Can Do Right Now:
Ensure you have the right legal documents in place. A well-crafted estate plan includes a power of attorney, a healthcare directive, a will, and potentially a trust. These documents protect your wishes and allow trusted individuals to step in when needed.
Review your financial situation and long-term care options. Don’t wait until you need a nursing home to figure out how to pay for it. A strategic Medicaid and asset protection plan can help you preserve your savings and still qualify for benefits.
Talk to your family. If you’re an adult child of aging parents, start the conversation now. If you’re a senior, let your family know your wishes and work with an attorney to ensure everything is legally sound.
Work with a qualified elder law attorney. The laws surrounding Medicaid, estate planning, and elder care are complex. A knowledgeable attorney can guide you through every step, ensuring your plan is legally solid and strategically designed to protect you and your family.
Take the First Step Today
You don’t have to figure this out alone. My firm specializes in helping seniors, caregivers, and families in North Carolina create plans that provide security, clarity, and peace of mind.
Schedule a consultation today—let’s create a strategy tailored to your needs so that you and your loved ones are prepared for the future.
Call me at (919) 336-4219 to schedule an elder law consultation appointment.
