As a wealth manager, I often guide clients through unexpected financial and health care challenges, including receiving a life-altering medical diagnosis.

According to the National Institutes of Health, 85% of Americans over 65 years of age have at least one chronic health condition, and 60% have at least two chronic conditions.

Receiving a diagnosis of a serious condition, such as cardiovascular disease, cancer, chronic respiratory disease or diabetes, can bring up a wide range of emotions. Many people feel shock, fear or anxiety as they process what the diagnosis means for their future.

Others may feel sadness, frustration or even denial, especially if they were not expecting the news. Some might experience relief if the diagnosis explains ongoing symptoms and opens the door to treatment.

If you’re affluent, financial security may not be your primary concern, but structuring wealth to align with new health realities is crucial.

When faced with such news, the first step is to organize your priorities and ensure that your health care, legal and financial strategies support your evolving needs.

1. Establishing a health care plan

Your medical diagnosis will dictate various aspects of your future planning. Consider asking your health care team these key questions:

By clarifying these priorities, you can develop a strategy that aligns with what matters most to you.

Whether your top priority is staying at home, ensuring your spouse’s financial stability or securing the best medical care available, identifying these objectives early leads to a more effective financial plan.

2. Organizing your finances

Once your health care plan is clear, the next step is reviewing your financial landscape. As your medical professionals will have a plan for your health, your financial team will need to come up with a plan for your finances based on your diagnosis.

Even for high-net-worth individuals, cash flow, liquidity and asset structuring are vital to ensuring financial stability through medical transitions, and organizing these key items is essential.

Here’s a list of what you will need:

A well-prepared financial plan should address not only current needs but also future scenarios, including increased health care costs, the need for more structured wealth distribution strategies, or potential liquidity needs in the future.

Consider how these expenses will impact overall cash flow and whether adjustments to spending or investment strategies are necessary.

3. Legal considerations and estate planning

With a clearer understanding of your health and financial priorities, you can update your legal documents accordingly, including:

Estate planning is not just about wealth transfer but also about ensuring that your wishes regarding health care and financial management are followed precisely.

4. Communicating with successor decision-makers

The final step is sharing your updated plan with those who will fulfill your wishes, including:

Having open conversations ensures that your financial, legal and health care plans are executed smoothly when the time comes, avoiding unnecessary stress for your loved ones.

Conclusion

A shocking medical diagnosis can be overwhelming, but with a structured approach, you can regain control of your financial, legal, and health care future.

By aligning your wealth management strategy with your new reality, you ensure that your assets support your priorities, allowing you to focus on what truly matters — your well-being and quality of life with your loved ones.

(Thomas C. West, CLU®, ChFC®, AIF® is a contributing writer to Kiplinger.com.)

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