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Subject:  Re: Nursing Home insurance Date:  11/14/2003  11:45 PM
Author:  TTRoberts Number:  37844 of 88775

MEG, you asked:

<< My Widowed Mother- in- Law has a “paid for” home (value $110,000)
An Ira ($65,000) with designated Beneficiaries.
Approx $180,000 in a brokerage acct (in her name alone)
Some variable annuities approx $80,000, with designated beneficiaries.
Some liquid day to day cash $20,000 (not in the brokers hands)
Social Sec income approx $1300/month.

She is investigating Nursing home insurance.
She is 73 yrs old and in pretty good health.

She does not want a Nursing Home to take all of her assets; she wishes to pass everything on to Her daughters (three).

Buying some LTC (Long Term Care) can surely help preserve some of it. But, at her age, it's going to be a little costly for LTC coverage and her asset level, as you've described it, may not warrant such an expense. If she had quite a bit more assets than this, then it would surely be worth looking into. One is going to have to take a very close look at the number to see if it's really worth it.

<< Her home is titled with LIFE USE. It would go to her daughters if she no longer could care for herself.

The broker wants her to look at the home insurance as a way if protecting the acct that has the $180,000 value.

It may be a good idea to look into other alternatives. . . which may include a plan for gifting some of her assets away NOW.

<< He says that the premiums could be paid from the annuities accumulations since the accumulations would be taxable to heirs anyway. Not sure yet what premiums would be or how much the annuities have accumulated. >>

Setting up an annuity to pay the premium can work to a certain extent. The main problem with such a plan is that annuity income if fixed and the premiums for LTC coverage is not. So, one needs to consider what to do when LTC premium increase . . .and they will over time.

<< Any ideas on this or any better ideas. >>

It would be a very good idea to see out a good experienced Elder Law Attorney for this kind of planning. Yes, such an attorney will cost some money. But the benefits will most likely outweigh the cost. And you'll likely find that there's more than one way to skin the cat.

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