Long Term Care and a Living Trust

As I discussed in my previous post, “Business Succession and Long Term Care,” the financial independence component of business succession planning has become more complicated with the growing concern about long term care. However, with the accumulation of wealth, there is reduced concern regarding the availability of resources to pay for long term care, if appropriately addressed. Based upon historical data, in current dollars, $500,000 of cash earning 4% gross income should provide sufficient liquidity to easily satisfy the average private pay cost for almost twice as long as the average stay in a nursing home. Assuming probabilities and mortality, for a married couple $750,000 should easily do it. However we have reviewed previously that long term care is not a simple issue because you may not be capable of making the “when”, “where” and “how” decisions regarding the various forms of graduated care, the quality of care and the timing of your ultimate enrollment in the nursing home of your choice. To read the end of this blog, click here.