“Long-Term Care Planning vs. Taxes: Finding a Healthy Balance”

Long-Term Care Planning vs. Taxes: Finding a Healthy Balance,” by Lindsay N. Graves and John M. Graves, Kiplinger

“Typical methods for long-term care financing include long-term care insurance, life insurance with accelerated death benefits and asset protection trust planning. … Self-settled wholly discretionary grantor trusts, which are irrevocable, can be used to house certain assets that Medicaid would otherwise expect families to liquidate and spend prior to approving benefits to cover the bulk of the cost. … [LTC insurance] …. policies are not a good option for families with under $1.5 million in assets, as they are cost prohibitive. If someone has a few million in assets and a large income or cash flow, then it can make sense to have LTC insurance as a simple hedge.”

LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

Kiplinger has gotten worse and worse over the years, but this article takes the cake. It puts Medicaid planning on a moral par with private LTC insurance and suggests LTCI is only appropriate for the very rich. Is it any wonder Medicaid is the dominant payer of LTC and private insurance languishes?