Through our elder law firm, you can explore the possibility of self-insuring for your long term care, using what are referred to as “legacy assets.” Your portfolio may contain assets that you are not presently relying upon for your support, and that you keeping for a “rainy day.” In the back of your mind, the rainy day may be when you might need these assets for your long term care. If you don’t use these assets, they will pass to your children, or to your named beneficiaries when you die. Sometimes taxes will be due.
A good planning approach to consider is transferring a portion of these legacy assets to a specially designed life insurance policy with a long term care rider. The asset which is repositioned, now earns interest, and when you die, the asset passes to your spouse or to your loved ones, usually tax free. If you need long term care during your life, you can utilize the rider, which “prepays” the death benefit to you, as you may need it for your care. You may need to utilize the rider to pay for in home care, an assisted living facility, board and care or a nursing home. With traditional long term care insurance, “if you don’t use it, you may lose it”.
Under the Federal Pension Relief Act, you may be able to transfer appreciated assets into such a product without paying capital gains. In addition, you may be able to transfer qualified funds, such as IRA’s and 401k’s, using a trustee to trustee transfer, without incurring a penalty.
At our firm, we can take a “snapshot” of your legacy assets, and present the snapshot to our associated financial company. They will then make a recommendation for such a product which we can present to you.
For additional information please feel free to contact our office.
This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, firstname.lastname@example.org we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.