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Asset Protection,
Please note up front: I realize most people are highly emotional concerning this topic of Long-Term Care and rightfully so. Having said that, being a professional on the topic, I like to remove the emotion as much as possible and look at the logic in addressing these life and family-staggering issues. I, too, have great feeling for this topic as both of my parents spent time in facilities with my mom multiple times. I do know the feeling and the emotions! I also realize that there is a lot of mis-information, mis-understanding and mis-perceptions as well. Therefore, patience and education is extremely important when I talk with my Referrals/Clients.
What Is The Need? The need for Long-Term Care is unpredictable and can happen to ANY one at ANY age. Seven major causes of nursing home stays are accidents, fractures or broken bones, strokes, heart attacks, cancer, Alzheimer's disease and senility. Stays can either be short or long-term, recuperative or chronic. Depending on which study you review, more than 50 percent of women and one-third of men over 65, and seven out of 10 couples will experience a nursing home stay sometime in the future. These figures increase to 70 percent for everyone at the age of 80. Almost all studies indicate a 50% likelihood of needing some form of long-term care. Shockingly, some NEW statistics report that as many as 40% of those in facilities are between the ages of 18 - 64 (under age 65) due to accidents, sports injuries and other issues, such as MS, brain tumors. Also, 1/3 of the people who have strokes in the US are under 65. For example, everyone knows about Christopher Reeves' un-expected, split-second, life-changing accident. Home care statistics are also atrocious. Most people are beginning to agree that there is no greater risk - statistically speaking - than Long-Term Care.
Where Is Care Provided? Contrary to common mis-understandings, Long-Term Care is NOT just provided in nursing homes. If approached with good planning in advance, it may be provided in the home with family, friends, or professional care givers; or in other community facilities, such as Assisted Living, Adult Day Care, and other locations as well as in Nursing Home facilities.
What Are The Costs? Long-term care is very expensive. Nursing Home stays with drugs and miscellaneous supplies can run $200 to over $400 a day or from $70,000 to $146,000 a year* depending on where one needs the care. And if both you and your spouse need care, you can see how these numbers explode. This cost is expected to triple in the next 20 years. * The national average is $55,000 to a $100,000 a year except in expensive areas like Massachusetts, Connecticut, NY and parts of California. Home Care costs can possibly be even more expensive depending on the need. One, two or three hours a day at $30 to $60 an hour two or three times a week vs. round-the-clock care can be either affordable or prohibitive. Again, this depends on the cause, the need for care, and the total assets available. Other facilities may be less or more expensive depending on the needs. This is why more and more smart people are so concerned about their assets and how they will pay for their Long-Term Care wherever and whenever they should need it.
What Are Some Of The Potential Solutions?
Multiple options, each with advantages and limitations, may be available. 1. Family and/or friends: Initially, out-of-the-pocket expenses may be less to stay at home. However, at what price? Questions to ask concern the care-givers' skill, training, experience or lack of it; their available time and dedication and what they have to give up; their physical and emotional capabilities now and in the future; their household's physical, financial and emotional needs and desires; your physical, emotional and other household changes needed for you to stay at home, etc. If you would like a professional LTC consultant's ear to bounce your thoughts, feelings, and emotions off, please ask me. I'm confidential and patient and as a professional financial planner, perhaps I might be that objective third party that may offer even more ways to make it work. Multitude of counsel increases better decisions.
2. Self-insure: How long can your assets hold out at today's costs and, possibly, with future compound inflation? Also, did you have other goals that you wanted your assets to cover, such as a spouse or relative, education, a home, retirement, travel, "toys", gift-giving, etc. instead of going to an un-known third party? Are there ways to protect your assets ... legally ... and still receive quality care in a setting of your choice? May I help you decide if this option is appropriate for you? Or how to combine this option with one or more of the other options available to many people?
3. MEDIcare vs. MEDIcaid: Are you aware of the difference between the Medicare insurance vs. the government welfare program called Medicaid? Medicare and other forms of insurance-like group or individual health insurance, Medicare supplements, retiree health plans, HMOs, VA plans, or disability income plans usually do not cover much of the Long-Term Care expenses. Medicaid is the government insurance program for the destitute*, which means you have to become poor to qualify for the welfare hand out and the associated quality of care. In addition, you can lose your right to choose where and what kind of care you receive. * There are ways to plan to do what is called Medicaid Planning where you "give away" your assets to qualify to become "poor". If you are considering this option, please investigate what that truly means in the FULL realm of care (... or lack of) before making your decision. There may be legal consequences as well.
4. Long Term Care Insurance: Many believe this is the only true peace of mind solution to obtain quality care and protect one's assets in a variety of settings. More and more are incorporating this into their retirement plans believing a retirement plan is NOT complete without LTC insurance. Even the government - the largest employer in the country - endorses Long-Term Care Insurance for their employees as they understand the importance of the critical health care situation now and in the future. The IRS has even offered tax incentives to purchase LTC Insurance. Ask me about the important details. There are numerous companies offering Long-Term Care Insurance today. Many of them offer several types of policies, each with different benefits, bells and whistles so that today there is an excellent possibility that we can together tailor-make a practical solution to your individual needs and your individual affordability. The options and combinations are endless. Literally!!! There are also group plans for your whole family's LTC needs that we can possibly make available through your employer or other affiliated groups that may come with additional tax benefits. There are even simple ways to make sure the policies are paid either monthly, quarterly, semi-annually, annually or even a one-time payment. Or, may I show you how interest or dividends from some of your investments and/or assets can pay your premiums for you? Possibly a small investment could protect all of your assets while you maintain the small investment. Ask me how. Ask me about 5 ways to save from 20% to 40% on your LTC insurance should this option be the right one for you. Also, ask me about ways to avoid making 2 costly common mistakes.
To obtain any of the following FREE, please write to the address below:
1. Educational Brochures*: * (Educational Brochures available from the American Association for Long-Term Care Insurance) * 5 Ways to Save (Consumer's Guide) Save from 20% up to 40%. * 2 Mistakes to Avoid (Consumer's Guide) Costly facts few know. * 4 Facts for Owners (Business Owner's Guide) Pre-Tax business dollars protecting your personal Assets. * 3 Minute Guide for CPAs (Accountant's Guide) Help individuals & business owners protect their personal assets.
2. High-Tech "Buzz-Cards": A short lively electronic presentation on Long-Term Care issues. Please specify whether for individuals or companies. There are special tax incentives for businesses. Possibly up to 100%!
3. Additional Information, Quotes, &/or Personal no-obligation Visit: Write and ask for your own personal no-obligation FREE consultation*. Yes, I am old-fashioned and still make house-calls and/or office-visits. * I have found that no two people or couples have the identical situation and goals/objectives, and, therefore, may require a different solution. Experience - Both of my parents have spent time in nursing homes with my mom several times helping me to learn first hand the need from the consumers perspective to address the LTC problem. After having been professionally trained in the industry by the experts in the late 1980s, I have also sat down with literally over a thousand concerned people over the years learning their situation as well as those friends, relatives, and acquaintances they have known. (Many times I have recommended that people NOT purchase Long-Term Care Insurance. It just wasn't appropriate. Why not ask me why?) This extensive practical experience coupled with the "legal and insurance industry theory" makes me keenly aware how important addressing the subject actually is with or without having done Complete Financial Planning. Some refer to me as the professional social-worker of Long-Term Care issues with complete financial planning background. Why not use this unique practical and theoretical professional background to possibly assist you to obtain the best personalized solution for your situation and your affordability?
Gary F. Restall
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