Helping Clients Avoid Care-Related Financial Crises

As California prepares for significant long-term care and Medi-Cal eligibility changes in 2026, advisors are in a pivotal position. Clients will increasingly look to their financial professionals for guidance on how to protect assets, maintain control, and avoid the financial shock that often comes with rising care needs.

Why Advisors Play a Critical Role

Advisors are often the first to recognize shifts in a client’s spending, health trajectory, or caregiving responsibilities. These early indicators are essential, because long-term care planning becomes far more limited once a crisis occurs. With new Medi-Cal resource and eligibility rules on the horizon, timely planning can mean the difference between clients preserving assets or facing an unexpected, rapid spend-down.

Key Vulnerabilities to Watch For

Many clients overestimate the role Medicare plays in long-term care. It does not cover custodial care, ongoing assisted living, or extended in-home support. Without advance planning:

• Private-pay care can deplete assets in months, not years.
• Families may be unable to act due to outdated Powers of Attorney or improperly drafted trusts.
• Clients may miss time-sensitive opportunities to protect or structure assets before rule changes take effect.

Advisors who understand these vulnerabilities can help clients take action before care costs escalate.

How Advisors Can Strengthen Client Preparedness

This is an ideal year to initiate or revisit conversations about:

• Long-term care funding strategies
• Asset structuring prior to Medi-Cal rule updates
• Updating POAs, trusts, and beneficiary designations
• Planning for incapacity and decision-maker succession
• Coordinating with elder law counsel to ensure legal and financial plans align

Early collaboration helps ensure clients avoid last-minute planning restrictions or emergency interventions—such as conservatorships or forced liquidation of assets.

Collaboration Protects Clients More Completely

When advisors and elder law attorneys work together, clients gain a unified strategy that addresses both the legal rules governing eligibility and the financial reality of rising care costs. This coordinated approach helps families maintain stability, preserve wealth, and navigate care decisions with confidence.

If you’d like to discuss how these 2026 changes may affect your clients—or explore joint planning opportunities—we’re always available to collaborate.