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?

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!



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