FOR BREAKING NEWS VISIT WWW.QNS.COM AUGUST 17, 2017 • THE QUEENS COURIER 25
LONG TERM CARE FUNDING
Protecting Wealth from the Ravages of Long Term Health Care Events
Call Now & End Your Tax Nightmare!
Co-Author of the
best selling book
“Breaking the Tax Code”
Salvatore P. Candela, EA, ATA, ABA
Enrolled Agent - Tax Advisor
JOHN J.
CIAFONE, ESQ.
MILLION DOLLAR ADVOCATES FORUM
THE TOP TRIAL LAWYERS IN AMERICA TM
Your Partner
in the Struggle For Justice
Admitted in NY NJ
and Washington DC
Attorney At Law
25-59 Steinway Street
Astoria, NY 11103
718-278-3900
johnjciafone@yahoo.com
Voted Best Attorney from
BY JOHN
SAVIGNANO,
CPA
As the American
population ages,
interest in the
topic of long term
care is surging.
People eventually
realize, albeit reluctantly,
that they may require care at some
point. Some, are motivated to research
the topic after seeing a family member, or
other loved-one, who has experienced a
devasating health care event.
In addition to the financial consequences,
people are concerened about
the potential burdens, emotionally and
otherwise, that may be placed on their
spouses and children in the event of
an extended health care crisis requiring
long term care services. They are assessing
whether and how they will be able to
fund long term care services if such services
are needed. When we look at numbers
and statistics, it becomes clear that
long term care is the most underfunded
potential liability for most people. And
those with significant levels of accumulated
wealth are realizing that an extended
long term care event can have devastating
effects on their net worth.
Cost of Care. The numbers are staggering
as evidenced by the following:
In NY State, for instance, the median
annual cost of a private room in a nursing
home is $136,000 and around $52,000 for
a home health aid. In the NY Metroplitan
area, the numbers are even higher. In
Bridgeport, CT, a private nursing home
room will cost $165,168. If medical inflation
is 3.5%, the cost will rise to $232,986
in 10 years and $328,650 in 20 years.
Solutions for Those
with Assets to Protect
There is some very good news for people
who are concerned about the impacts
of a long term care event on their savings
and investments and are seeking efficient
ways of dealing with the exposures.
Traditional Long Term Care
Insurance – The traditional LTC market
has stablized and the carriers who
are dedicated to this space are offering
policies with a menu of options that
help consumers to create a policy that
they are comfortable with and that they
can afford. There are no longer shortpay
and life-time benefit options, but
the LTCi market offers very valuable
insurance for those who are seeking
peace of mind. Addiitonally, there are
favorable tax incentives,. For instance, a
C-Corporation that purchases tax-qualified
long-term care insurance on behalf
of an Employee Stockholder may deduct
the premiums paid as an ordinary business
expense. And, NY State provides
a 20% credit for tax qualified long term
care insurance premiums.
Assset-Based Hybrid Solutions – The
major knocks on traditional LTC coverage
include: 1) use-it-or-lose-it coverage
(if you have don’t require long term
care services, you get no benefit) and 2)
no premium guarantees. So, the industry
introduced asset-based hybrid solutions
(LTC coverages built on base life
insurance or annuity contracts) These
have been gaining in popularity and are
very well suited for people 55 and older
who generally have between $1,000,000
and $10,000,000 in assets. The benefits
of an Asset-Based policy are summarized
as follows:
1) Ability to reallocate existing, conservatively
invested assets to provide leveraged
protection.
2) Portfolio protection against catastrophic
loss.
3) Guaranteed Premium – no possibility
of future premium increases.
4) Death Benefit - In the event of death,
a death benefit is paid.
5) Return of Premium optons - The
insured has the ability to ask for much
or all of the premium contributions to
be returned at a future date should their
needs or circumstances change.
Important questions to ask when
considering Long Term Care Funding
Options
• If you did need Long Term Care, who
would provide your care?
• What would the impact be to the care
provider?
• What impact would one or more
extended long term care events have on our
estate and is it something we can accept?
• Can we comfortably reallocate a relatively
small portion of our assets to gain
the peace of mind we are seeking?
John Savignano is a partner with
Savignano Accountants & Advisors
located at 47-46 Vernon Blvd., Second
Floor, in Long Island City. If you have
any questions or require additional
information, please call John at 718-
707-0955.
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