Case Study #2:  Pre-Retirees & Second Marriage

Long-Term Care Planning for couples may have unique variables to consider, particularly for couples in a 2nd marriage.   The first factor to consider is that one of the individuals will likely become a caregiver and/or will survive the spouse who required care.   The second factor is that one of the individuals may want certain assets to pass on to specific heirs if Long-Term Care is never required.  For this case study, we make the following planning assumptions:

• Nick & Nancy, both are age 60
• Recently married  (2nd marriage each)
• Both have assets and plan to retire at 65
• Would “pay for care” with over $250,000 cash value in an old annuity.  ($150,000 Basis)
• Concerned about becoming a burden on one another.
• Unaware of how to use the Pension Protection Act for Long-Term Care Planning 

Based on the Pension Protection Act, which scenario would better address their LTC Planning needs?