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    • Home
    • LTC Basics
      • The LTC Planning Gap
      • The CAREfidence Process
      • Quantify The Need
      • Planning for LTC
      • The Self-Funding Realtiy
      • TAX-FREE Annuity Upgrade
      • Necessary Legal Documents
      • Don't Go It Alone
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  • Home
  • LTC Basics
    • The LTC Planning Gap
    • The CAREfidence Process
    • Quantify The Need
    • Planning for LTC
    • The Self-Funding Realtiy
    • TAX-FREE Annuity Upgrade
    • Necessary Legal Documents
    • Don't Go It Alone
    • News & Notes on LTC
  • Design A Plan
    • Could This Be YOUR Plan?
    • Customize A Plan For Me
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Planning Scenario #2

Nick & Nancy: Pre-Retirees & Second Marriage

LTC  Planning for couples may have unique variables to consider, particularly those in a second marriage.   One factor to consider is that without proper planning, one of the individuals has a high likelihood of becoming a caregiver and/or will survive the spouse who requires care.   A second factor may be that one of the individuals may want certain assets to pass on to specific heirs.   Here are the planning assumptions for Nick & Nancy:


- Both are age 65, recently married (2nd marriage each), have individual assets, and plan to retire this year.


- They would “pay for care” with $200,000 in Nancy's existing annuity, which has a $100,000 cost basis, or the amount that she originally deposited into the annuity.


- They are concerned about becoming a burden on one another and their families.


- They were unaware of the Pension Protection Act or PPA and how to leverage it and potentially turn Nancy's single-life annuity into a joint-life LTC Plan.


Net Cost = No Additional Plan Cost


If you own an annuity like Nancy and Nick, which LTC Planning option would you select to maximize the existing annuity?  

*  Some traditional LTCi carriers may accept a 1035 exchange to fund an individual policy; however, none will 

facilitate a 1035 exchange to fund a joint plan, as that requires separate contracts and violates the 1035 rules. 

See The Next Planning ScenarioReturn To The Main MenuCustomize a plan like this for me

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