Long-Term Care Planning

With 70% of people over 65 requiring long-term care, the question is how are you going to pay for it?

Modern health technology is helping the average United States citizen live a longer life. This extended longevity is increasing the likelihood a person will need long term care services at some point during their life either for short-term recovery from an acute condition, or a long-term stay for a chronic illness. Alzheimer’s, dementia and Parkinson's disease are considered long-term cognitive illnesses, otherwise know as memory care, they may require care lasting from 2-20 years. Other degenerative diseases such as obesity, diabetes, stroke, heart problems, and cancer, as well as accidents and injuries resulting in conditions such as bone fractures, may all create the need for physical long-term care services. Having a plan to pay for this type of care is important due to the fact that some or all may not be covered under traditional Medicare and Medicare insurance options. So by having a plan in place for care that is not covered, you will have peace of mind knowing you are addressing an expensive problem if it were to happen to you.

Long Term Care Insurance

Long term care insurance is more than just ordinary retirement planning. The goal of long term care insurance is to keep you out of a nursing home, maintain your independence at home, and protect your assets. It removes the worry of having to earmark your nest egg for the uncertainty of needing care, so you can enjoy doing the things that make you happy.

What Does Long Term Care Insurance Pay For?

Your long term care insurance benefits can be used to pay for home health care, assisted living facilities, adult day care and nursing homes. In fact, 72% of all LTC claims are used to pay for home health care, a service that provides you with in-home help with your activities of daily living, as well as cooking and cleaning. Long Term Care Insurance will help ensure you will be able to stay in your own home to receive care.

Doesn’t it make sense to protect yourself from the greatest financial risk you will face in your retirement? Having long term care insurance coverage can save your nest egg and your retirement. Imagine how relaxed you’ll feel knowing that you planned ahead and now you and your family are protected. Contact one of our qualified Wexford financial advisors at Greg Miller & Associates today for the help you need planning for your future.

Legal Asset Protection Planning

For those who are unable or unwilling to purchase Traditional long-term care insurance or use annuities or a life insurance policy with long-term care riders, and wish to protect assets from long-term care, legal planning with a Protector Trust may be a viable alternative.

A Protector Trust is designed to allow you to maintain control of your assets, as long as you are alive and able, however, after an asset is in a Protector Trust for five years, the principle of the asset is protected from ever being used to pay for long-term care. The trust is designed to protect “after tax assets,” such as your home, any real estate, non-IRA annuities, non-IRA investments, CD’s, and life insurance policies which have a cash value.

You maintain control of trust assets as trustees. As trustees, you are entitled to any income from the trust assets. Your beneficiary(ies) are entitled to the principle. It is an effective way of giving your assets to your beneficiary(ies) at your passing, but has control and indirect access to the principle during your lifetime. You may buy or sell assets within the name of the Protector trust as trustees.

Plain and simple, after the five-year “look-back,” the assets are “non-countable” and “exempt” from spend down for a nursing home, thus protecting the assets for your spouse’s continuation and to pay your legacy to your heirs. The Protector trust from day one will protect assets from creditors, liens, lawsuits and judgments.

Since this trust cannot be used to protect IRA’s and 401Ks, it cannot protect all of your assets, but it can be used to protect a significant portion of your estate from long-term care and protect your legacy for your spouse and/or for your family.

If protecting your IRA/401(k) is a concern, we have a strategy called the “IRA Rescue” program, which may be appropriate for your situation. Please complete the contact form on this page and schedule a free consultation with Greg Miller.