Blog Archives

Estate Planning – Changing as We Age (Part 4)

            Last week I was telling you why the New Jersey probate process can be easy but the tax waiver system designed to protect the State’s ability to collect estate and inheritance tax can tie up your money for years.  That’s because the law requires financial institutions to freeze ½ of your account until the […]

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Why Won’t the Government Cover My Care?

            It’s a comment we get frequently when someone calls our office just after getting sticker shock at the cost of their loved one’s long term care. Some get angry upon hearing that, if they have assets but no long term care insurance coverage, they’ll need to use their own funds to pay for care. […]

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The Problem with IRAs – The Solution

            So, what is the solution to Bill’s IRA problem from last week?  He has $1.2 million in IRA money and doesn’t want to risk losing it all to long term care if he gets sick.  But protecting it by moving it to a trust will cause him to pay a lot in income taxes.  […]

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The Problem with IRAs – Part 2)

            Last week I was explaining the problem with IRAs and long term care.  If you need care at $125,000 per year or more but want to protect your IRA, what are your options?  It’s always easiest to illustrate by way of an example.             Bill has an IRA worth $1.2 million and he doesn’t […]

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The Problem with IRAs

            IRAs, or any retirement accounts really, have always been a problem when it comes to long term care.  They are a great vehicle for accumulating wealth.  You can put away savings in an account which will earn interest on a tax deferred basis.  No income tax is paid on the growth until you start […]

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How to Self Insure for Long Term Care (Part 2)

            Last week I was telling you about using your own money, what we call legacy assets, to self-insure for long term care.  This week I’ll walk you through an example of how that can work.             Mary is 73 years old.  She has high blood pressure, for which she takes medication but otherwise is […]

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Second Marriage – Happily Ever After?

                George called me because his wife, Mary wasn’t doing well.  She has dementia and he is facing the prospect of needing long term care for her, possibly in a nursing home, although he would like to do everything possible to keep her at home.                 As the conversation always does, it quickly focused on […]

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A Personal Story

                About a month ago, my parents’ health took a sudden turn and it led me down the path that many of our clients and their families face, tackling long term care.   In our case, it was an accident outside their home.  My mom broke her leg.  My dad suffered some bumps and bruises but […]

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Using Your Own Money to Pay for Long Term Care – the Better Way? Part 2

                Last week I was talking about the difficulties in funding long term care through long term care insurance or Medicaid.  Insurance companies are getting out of the long term care market entirely or drastically raising premiums.  Medicaid, the primary government program that covers long term care, is still a fall back for many.  But, […]

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Using Your Own Money to Pay for Long Term Care – the Better Way?

                As I always explain to people, there are 3 ways to pay for long term care.  One way is to use your own money.  A second source is long term care insurance and the third is government benefits – primarily Medicaid and the VA Aid and Attendance program.                 I have written much in […]

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