Long-Term Care (LTC) Planning for Couples may have unique variables to consider, particularly those in a 2nd marriage.   One factor to consider is that without proper planning, one of the individuals has a high likelihood of becoming a caregiver and/or will survive the spouse who requires care.   A second factor may be that one of the individuals may want certain assets to pass on to specific heirs...

For this case study, we make the following planning assumptions:

• Nick & Nancy, both are age 65
• Recently married  (2nd marriage each)
• Both have assets and plan to retire this year.
• They would “pay for care” with $200,000 in Nancy's existing annuity, which has a $100,000 Cost Basis.
• Concerned about becoming a burden on one another and their families.
• They were unaware of the Pension Protection Act (PPA) and how to leverage it and turn Nancy's single-life annuity into a joint-life LTC Plan.

* Some traditional LTCi carriers may accept a 1035 exchange to fund an individual policy; however, no carrier will facilitate a 1035 exchange to fund a joint plan, as that requires separate contracts and violates the 1035 rules.

Which option would you recommend to achieve their Long-Term Care Planning goals and maximize the existing annuity? 

And....Does your current LTC wholesaling resource provide a presentation tool like this?