Simple Solutions for High Net Worth Individuals

For people who realize that if they want both quality care and financial security as they age, they need to do something now. The following example is taken from an actual client case.

Client:  Couple; wife’s age 66 & husband’s age 64 with a net worth of a little over twelve million dollars.

Their planning need: Although they have the funds to provide any care needs that either may someday need, they are interested in ways to keep their holdings and positions stable during their later years and for distribution purposes.

Solution: Leverage their current liquidity to handle any future LTC events. This will provide a growing pool of funds easily available to access quality care without forcing liquidation of investment holdings.

Our clients transferred $300,000 (less than 2.5% of their net worth), into a Pension Protection Act Qualified LTC Annuity (PPAQLTCA) that covers both of them.

Result: The PPAQLTCA provides them an initial minimum LTC Benefit of $818,000 payable at the rate of $8,025 per month for long term care at home or in a facility. Benefits are increasing each year at a rate of 5% compounding.

In 15 years, (based on the policy’s guarantees), they’ll have an LTC benefit equaling $1,400,000 with a monthly benefit of about $13,730. In 20 years $1,750,000 with a monthly benefit of about $17,150. Benefits will continue to grow over their lifetimes.

The annuity will pay benefits for Home Care, Assisted Living Facilities and Nursing Home. The benefits paid are NOT considered income for income tax purposes. The value of the LTC benefits are NOT countable as part of their taxable estate for Estate Tax purposes.

There are many variations to this type of solution that can help many people in their unique circumstances.

We pride ourselves in providing our clients with the best possible advice for their long term care planning needs.

For additional information please feel free to contact me: Michael Teller, 561 272-0720, [email protected]