Offering more comprehensive planning options together.
New Hartford, New York (PRWEB) September 23, 2015
Estate and elder law attorneys sometimes feel unable to help a client. They express frustration that the traditional planning strategies just won’t work in the situation presented. Here is a common scenario:
Jane, a widow who lives in an assisted living facility, has two adult children who are independent with no disabilities. When Jane’s husband, David, died two years ago, Jane gave each of her children $100,000 without consulting a lawyer. At that time, Jane was living at home and doing well. About six months after David died, Jane began experiencing a series of mini-strokes. The cost of her care is depleting her resources rapidly. The children really want to avoid putting her in a nursing home but are concerned she will need one soon. During a meeting, the attorney would naturally raise the possibility of a transfer of assets penalty due to the prior transfers.
Many elder care attorneys would likely try to find ways for the remaining funds to stretch out during the penalty period. Some might even propose that the children return the gifts if possible. In Jane's case, it is not possible.
Is there anything being overlooked? Maybe a dormant asset that can be utilized?
There may be -- if the client has life insurance.
Term life, universal life, and whole life insurance policies can be sold to pay for care. In Jane’s case, she has a $300,000 policy. She was considering letting it lapse because she can no longer afford the annual premiums. Instead of letting it lapse, let it pay for her care during the Medicaid look-back period. Assuming a company purchases the policy for 40% of its face value, Jane would then have a fund of $120,000, or $3,333 per month for 36 months, to pay for care during the remaining five-year look-back. Jane’s income, added to these additional funds, will be sufficient to cover the cost of the assisted living facility for three years. At that time, the family can feel comfortable and confident about transitioning Jane into a nursing home and applying for Medicaid, if necessary.
To learn a little more about Life Care Funding, go to click here. For those with clients who could benefit from converting a life insurance policy into a long-term care benefit, click here for the Long-Term Care Benefit Qualification Form. Or to learn more about this new planning option for seniors, go to http://www.LifeCareFunding.com. Never hesitate to contact Life Care Funding directly at (888) 670-7773 or email info(at)lifecarefunding(dot)com.
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Victoria L. Collier, Co-Founder, Lawyers with Purpose, LLC; Certified Elder Law Attorney through the National Elder Law Foundation; Fellow of the National Academy of Elder Law Attorneys; Founder and Managing Attorney of The Elder & Disability Law Firm of Victoria L. Collier, PC, Co-Founder of Veterans Advocates Group of America; Entrepreneur; Author; and nationally renowned Presenter.