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:
Based on the Pension Protection Act, which scenario would better address their LTC Planning needs?
By planning ahead, your clients can upgrade an existing annuity (1035 Exchange) to a PPA compliant solution TAX-FREE and then, when necessary, take TAX-FREE distributions from the new annuity to cover qualifying Long-Term Care expenses in the future. All with ZERO out-of-pocket cost!