Sample of An LTC Plan Summary

                  1        Saving and investing for retirement

                  2        Preserving and spending what is accumulated

                  3        Leaving an estate to heirs and beneficiaries

A plan for long-term care is an integral component of an effective financial and estate plan because a long-term care event can have negative effects on all 3 of these areas. It could also prevent your family from reaching their personal and financial goals due to helping you with your care. Prudent planning requires that a plan for long-term care be developed long before the need for care.

Developing a plan for long-term care entails the following 7 Steps of the Comprehensive Planning Approach:

1.      Learn about Long-Term Care: What it is, where it is received, how much it costs

 2.      Evaluate the implications of relying on the 4 resources:

             • Family • Welfare • Personal Assets • LTC Insurance

3.      Determine your preferred payment and care options: Consider the pros and cons of each of the 4 resources as they relate to your personal situation

4.      Choose the best option and develop your written plan: Create a written plan that describes the details of the option you have chosen

5.   Implement your plan: Take the necessary actions to implement your plan:

·         Family: Firmly establish who will provide the care and where

·         Welfare: See an attorney familiar with Medicaid Planning

·         Personal Assets: Earmark the money that will be used for your care

·         Insurance: Ask your financial advisor to refer you to a certified LTC Planning & Insurance expert

            6.  Finalize your plan: Provide copies of the plan to your financial and estate planning
           advisors and to appropriate family members

               7.  Review your plan annually:

§   Is the option I chose still applicable?

§   How is inflation affecting the option I chose?

§   Are there any new state or federal legislative changes that may affect my plan?

THE AVERAGE MONTHLY COST OF CARE

REGION:   San Francisco

NURSING HOME CARE:  $9177

ASSISTED LIVING COMMUNITY:  $5410

HOME CARE:  $4951

OVERALL AVERAGE COST OF CARE:  $6513

The above information is for illustrative purposes only.  

Your actual monthly cost of care may be more or less than these amounts.

January 20, 2009

     Summary Long-Term Care Plan for Ann M. Sample

After reviewing the advantages and disadvantages of the four options for paying for long-term care, the following option has been chosen:

Rely On Assets

The reasons this option has been chosen are:

Sufficient assets to pay the costs out of pocket. Do not believe in transferring the risk to an insurance company.

This plan should be reviewed at least annually.