Estate Planning RED FLAG… You haven’t planned for long-term care...

Wednesday, February 19, 2014

Estate Planning RED FLAG You haven’t planned for long-term care

Too often, people planning their estates focus on tax and asset-protection issues and overlook long-term health care needs. But the high cost of Long Term Care (LTC) — which may include an assisted living facility, nursing home or home health care — can quickly devour resources you need to maintain your lifestyle during retirement and provide for your children or other heirs. LTC expenses, which can easily reach into six figures annually, aren’t covered by regular health insurance policies or Social Security. And Medicare provides little assistance, if any. So it’s important to have a plan for financing these costs. Talk with Pappas Financial  for your estate planning, investment and insurance needs and be sure that Long Term Care costs are considered as part of an integrated estate and financial plan. Pappas Financial can help ensure that you set aside sufficient funds to provide quality Long Term Care coverage for you and your spouse if necessary. For example, consider a Long Term Care insurance policy. Although these policies can be expensive, under the right circumstances they can prevent Long Term Care costs from

depleting assets you’ve set aside for retirement and estate planning. And many of the newer policies provide for the return of principal or include a life insurance component. Each policy is different, so it’s important to understand their terms, conditions and scope of coverage. Also, find out whether a Long Term Care policy is “tax-qualified.” If it is, any benefits you receive will be excluded from your taxable income — subject to certain limited exceptions — and you’ll be able to deduct a portion of your premium payments. Tax-qualified policies are guaranteed renewable and non-cancelable; don’t delay coverage of pre-existing conditions more than six months, and meet certain other requirements.