Estate Planning & Elder Law Hour - 9.16.17

Saturday, September 16th

00:53:35

I believe that Estate Planning is here to give you control over who is in charge of taking care of you and control over how you take care of your family after you are gone.  Without proper planning you can lose control and your family will not be able to take care of you as easily, or you will not leave your estate for the benefit of your family according to your wishes.

I had an experience in my own family where during a crisis, we lost control over where my grandmother was going to receive care.  This caused my grandparents in their last years to be separated by a long distance after more than 60 years of marriage.  I believe that my grandparents have drawn me into the field of estate planning and elder law to affect the lives of my clients so that they can have a different experience at the end of their lives than my grandparents did.

I place a special emphasis on protecting the assets of aging loved ones and educating families about complicated laws and the best options available to them.  I am passionate about helping others preserve their money, avoid probate, and achieve lifetime estate planning goals. 

I started my post law school career working for a large financial company helping financial planners with advanced estate planning and tax planning. I utilize this financial services experience to bring a different perspective to my estate planning and elder law clients.  My number one priority is to educate and empower clients to make the best decision for them and their family; there is no one way to do things.  I strive to give clients options and let them choose which direction they want to go.  I like to say, “If you don’t ask yourself the right questions, you never get the right answer for you and your family.”

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

This is the estate planning an elder lauer with skip Reynolds. We dive into wills trusts powers of attorney and so much more. Now here's your host stiff Reynolds welcome everyone this is DC playing elder law hour with me skip Reynolds for those do you. Who might be listening for the first time or maybe have a listen all while. Again this show is all about education so that you make good choices for you and for your family because at the end of the day. Estate planning is really all about spamming it's how your family can take care view when maybe you can't take you for yourself but you're still here with us. And how you take care of your family after you are gone. So today have got a real special guests I have race Smith with me and enrage is what he calls himself the long term care guy. I think he even has something like got on your license plate is that right rank it is I do know real terrorists are circuit Clinton fit. Well it's it's definitely unique for sure but it could tell me a little bit about what you do ray you been doing this for quite some time kind of give me a background of how you got into talking about long term care and what is it TU. OK skip. I started in the insurance business wave back a long time ago. And I knew nothing about long term care more compare insurance planning none of that. And my mom got sick in 1999. And 2000 ensues on the East Coast and here I am in Colorado might have one sibling your brother in California. Says. Travel schedule we will in fact these. The C mom each of us one week of every month and I was on the phone every day and I learn more about long term care than I ever wanted to. As good hard not so we the job and I realized that when all is was overriding. I was in an agency of the time. And I knew more about long term care and anybody around me so move it made me agency's long term care specialists which meant I had to learn even more than worth Orlando. And I realized very quickly that nobody was talking about long term care. There's a huge. Potential does draw on anybody's retirement plan anybody's estate plans. And nobody was even talking about it the agents around Maine. That progressed through a bit die Ben went out on their own. As in the independent. Insurance producer. Broker. A representing any number of insurance companies and that I still do that today. And I enjoy it I really liked working with people I let seeing light come on we're people finally understand just what long term care it is. And the incredible risks with their exposed soon if they didn't even know they were exposed to it. This is sue sue you kind of sit there what is long term clear to you then long term care best best way to explain that. Is to get to give a few examples let's say that you have the misfortune. Breaking your leg you go skiing here in Colorado when you come off the hill and your leg is broken. But he'll be taken to an emergency room you'll be stabilized. The you go through a fairly short rehab. Program and your good ago. Now let's contrast that with instead of breaking away you had a stroke. After have a stroke you're also brought to the emergency room. Maybe the same emergency room of this I'm single yeah could be. And your stabilized says before. That's the first first order of business and then when your stabilize the neural surge room check in with two n.'s. Here you're looking at a very glance the rehab program. Not only is it long but it's incomplete because at some point in that process your doctor's gonna turn you on who's gonna say ray. You've made remarkable progress when you first came in here you couldn't even talk and now look there's two you could talk and walk and chew gum ball the same time. However. You're only is about 80%. And that's is good measure ever going to in never going to be back to what you were before you never will and you need some help in getting through today and likely is not you'll need that help the rest of your life. That helpers were long term care's. OK so that help is to help you pay for whatever those means may be. And well are you need the care and he explained that our long term care insurance is. So one of several ways of actually paying for that care the first thing is that you need to care you need the help. It's it's what's called non medical help you don't news doctored to help you address and days and need. Which you do need another person another human being to help you and that doesn't come inexpensively. The average cost of home care and metro Denver's about 25 dollars an hour. That is so quickly and what kind of services do you get for 25 dollars an illusion you get a trained persons. Supervised from an agency here. These are your not the employer and I always. Caution people not to hire somebody off the street. But rather go through an agency says Richard not the employer revolves. Legal liabilities of veterans benefits that would entail. You get somebody who comes to your home. Can it can help you believe can help you just dress can help you need to all those kinds of things. And also can do light housekeeping for you sort you can stay at home. Now that's home care and then if you are too. Ask you're a hundred people on the street nine V nine of them probably maybe even a hundred would say I'd rather receive care. In my home. You know we all we don't want to be at home that you're comfortable that's where maybe our spouse is it's where our stuff is. It's where your starters and you don't need anybody's permission if you wanna watch TV at night well maybe your spouse. And depending on how lucky there's no wireless headphones were remarkable way they can solve that problem. But does the job home is where people want to be its least disruptive. Least restrictive. But you also may reach the point where you were home care isn't gonna work anymore you need more care than that next step up would be assisted living. Mirror assisted living facilities. Older Denver all over the country on their like hotels anymore I mean these independents in this this is an easy walk in. And I can't believe how nice amount more. Well mask you're you're talking about the nicer lesser share some of them aren't so nice. That's gonna cost you on average in Denver somewhere around 3504000. Dollars a month. And that's kind of base V. Assisted living facilities typically will include. Oh maybe one hour or weak government helping you out bury you van and may be a few hours of this a few hours of that. But if you want more than that more than one hour a week of helping you know base you have to pay extra so move lose average cost of assisted living in Denver can easily go 25 or 6000. A month. And they kind of add all the car little pieces they do here you know they do. No next step up after that and the most restrictive than the one place nobody wants to go to loses a nursing homes here. Nursing home requires that you be monitored 24/7. They have a doctor on viewed Iran staffer on call there's an. It's more restrictive then and as you might imagine as more expensive. Somewhere around 8500 maybe 9000 a month on average you wanna nicer place it's gonna cost you more. So what I do is not just about insurance is about. Planning for long term here is looking at the big picture the how is this a big picture Harry gonna pay for this stuff number one who's gonna provide the care. You know people often think kids that their children a little bit. And the it's your experience been with your clients in a well thought that it doesn't happen for a number of reasons first of all ought to be in my personal example we have two kids. Two adult does there's a boy and a girl. And they have their own lives and I aids surely don't want Lou winched him away from that and then film who have come take care of mom and then myself. And so people think that this might all my kids who take care of me. When I hear that I would say I was asking questions have you had that conversation. Did you tell them that do you expect your view your daughter and by the way it's mainly. A daughter thing is supposed to have. A guy. I wouldn't want my son taking care of me who should receive it within ten well. Don Jacobs you're listening. Nothing personal here it is your guy and I know guys. And I don't want my daughter taking care maybe because to do that she would have to put her life on hold them we didn't raise our kids suit to do that for us we raise our kids through. The independent have their own minds in them that's how most people feel you don't want to be a burden on them both for sure not for sure not. And so the people will say my kids will take care me without thinking it through. And and then that's just another way of saying I don't wanna deal with the issue I don't think about it. Because thinking about it means it might actually the yeah and that's funny because it might actually happen whether you think about it or not for. The statistics I used to hear were that if you make it to age 65. It's included some really high probability you're gonna need some some period of long term care. Well guess what I've made it to 65 and so's my wife and I don't mind sharing this with your audience and with the use skip. My wife has been diagnosed with Parkinson's disease and she's fine now and almost no symptoms. But we know what's coming we know what's what's down the road and I know for sure the we're going to use policy you have. There I bought so many years ago for the two of us. OK so. You bought long term care I mean let's talk about the what are the ways to pay for work here FiOS and then that's and then maybe we can get into you. What is long term care or the different forms and and what are you seeing out there in the marketplace so. I mean the first face to go would be paid for with your own money is that right. Yes you could if you have enough and buy enough I would say the you do wanna be on the safe side for a married couple you need. You need to have about a million and a half to two million that you could in the. Earmarked just for long term care so liquidated. Just for long term care not to spend to go to Disney world with the grandkids. Oh no that's the point and that's the problem with self funding if you have enough fast says you could self fund you can pay for care yourself. But that means that those assets are not available for a state planning who work if you do skipped or four. Enjoying life with the grandkids or travel or whatever you may you may wanna do. And another way of paying for long term care. Is there's Medicaid now Medicaid is a safety net. However I you guys would suggest that. I've yet to meet anyone who it and after carefully considering we're Medicaid means. What kinda ruler of accommodation that might be a fact very few there's no way to have a private room and have Medicaid pay for that because they don't. And you have to spend down your assets through very low level. Nobody. Nobody rises choice will consciously choose Medicaid as a way of paying for long term care. And yet another way of paying for long term curse or talked about self funding we've talked about. Medicaid. Is insurance and insurance is what I offered to people are also Lou do a broader. Form of planning if you will I talked about Medicaid the talk about self funding and maybe for someone who. Really doesn't care what happens to have money if they wanna spend it that way that's fine but. For most people who qualify and you do have to qualify medically you have to being good health. You have to be able afforded it's not that expensive but you do have to be able bigger mark some amount of money. To pay for long term care insurance the insurance is the most effective way of of prepaying if you will for terror I'm thrilled that my wife and I have done that so we're we're ready we're covered. It makes you kind of feel good it said. Blanket if you will it's gonna cover young and keep you warm and and take that burden off of your mind. That's a good way of who have expressing its spirit and that's that's entirely correct. We do you know you have enough to worry about enough to do wonder about. And then where's the money gonna come from fortunately is not one of our problems because we have a good policy we've had a for a number of years. Sure sure is so maybe after the break cool Gideon's you know what are the different policies in how to these things all work. Armed but. I know that sometimes people come in and I've definitely seen this with financial planners that I work with out there that. They believe it if you have a certain amount of assets Carnegie in the range of what you said. That they can self insure they don't need to even consider any formal long term care insurance. At what what's your opinion on them. Well script. At the risk of offending my you've financial planning friends. Let me suggest that as have as an advisor. No advisor wants look foolish in front of a client. Long term care. Long term care services themselves as well as long term care insurance or very complicated are very complex. Financial planners have a lot on their plate too begin work. And they tend not to really crawl into. The we had. Tricked a series of long term care funding long term care insurance. Very much and so they tend to say to their clients who have. Any amount of significant net worth a view on news bureau okay. It's not what I believe. Will I believe very firm runaway is that. Personal long term care planning is not a financial plan in and of itself. However you cannot have a complete financial plan that doesn't ask and answer the question. How're you gonna pay for long term care services when you needed. And who's gonna provide those services you guys you've got to address that he got to ask the right questions she never gets there I'd answer there you go. So what I do very often is I compliment the worker financial planners do. I I don't do any use the investment planning or any of that other stuff of which is important for sure. But what I do is our focus. Exclusively on law on planning for long term care. And I do it full time. Have entire book shelf lined with. Specimen policies in various insurance companies are represented a number of them. And I won't take on a new company until I've had a chance to crawl through there specimen. Or sample policy. Market up all over the place ask a lot of questions what do you mean by this checked your reputation for paying claims. And so on I wanna know what's covered wanna know what they actually do before all are present them right. Says so. Just because somebody has a 1000002 million whatever the number might be in assets doesn't mean that they don't need to consider. Some form of long term care. No of course not. As we've got to have a plan. And you've got to have a plan that's for sure what that plan consists of is losing convert you know we give you an example. If Bill Gates were to walk in that store right now but store right over there. And and I would say to him build do you Melinda have long term care insurance and he was there would you crazy someone who richest people on the planet and they put you every day where I could pay for this stuff us of course you could but. Let me point out that you and Melinda have been very. Generous in funding things slide the education for women in India. Clean drinking water and ask for prayer. All of these kinds of things and and by the way the if you Melinda need care your your not gonna pay 25 dollars an hour which is the average cost of a home care. From an agency or home care person. You're gonna spend a lot you're gonna have more than one person around the clock you're gonna be at home you're gonna have our hands so you're gonna you're gonna go through what's conservatively say five million bucks. Now five million dollars maybe sought to drop in the bucket to do mr. gates is why am I calling him mr. gates fraud by abuse your Microsoft stuff for so many years. It has helped a friendly deal I am have another title like could give few but I'm not gonna do to grow on the radio. So. Instead of I use spending five million dollars on care. That's five million dollars that is not going to become available for clean drinking water and Africa for educating girls and then in India. And so on. So there it to me there is no upper limit non. How much how much wealth or how much network you can have and not need to plan for long term care. And and again I would argue is the best plan for you. Bill and Melinda is that a good solid long term care insurance policy. And soon. Really seems like to me the question is is that how you want to use your money hearing you talk about a bill and Linda do you want it rather have it clean water for Africans. You know those kinds of things rather than spending it on your care and that's really what. The question of course of course it is what will ever amount of wealth you have. There you've you've got you've got to earmarked for something maybe you have a charitable intent. May in May be you wanna find your future generations. Education to weather whatever may be here you me you really don't wanna. Through this moneyed down a rat hole and then and have a disappear on you for for long term care. So there is so off load some of that rescue off to carry all of it is off load some of that risk to an insurance company that's who they're here for. The jets some businesses some profitable business but. Bill. There too to make it work for you. OK so what are we take a little break here when we come back let's talk more about what our long term care policies what are the different types of alternatives. What do you see when people come into your office with. Policies or without some of the experiences that you go through re a but how can people get in touch with you if questions for. Well the best way is to could just pick up the phone call make 303. 6994172. That's my direct line. Or they can be emailed me and that email addresses ray that's our A wise at LCC. Insurance. Guy. Dot com that's guy is and gee isn't golf viewers and uncle wires in yellow. But I either way we'll get me very good look at my website if you like I'm proud of it WWW. Dot LTC. Insurance guy dot com. He got that LTC insurance guy all over the place so why do I do that like if our if anybody missed any part of the first part of this show you go to decrease of 1430 web site into the weekend show page good DC planning an elder law power in confined to right there. Wearing go to my website at WWW skipped ten law dot com. Mean good the radio page and find it there as well the other questions for re please reach out to him more he can reach out to Miette info. At skipped in law dot com and if it's a question for rail make sure that he gets it. Soon come back we'll continue our discussion about long term care. Sure it's excellent. This is the estate planning an elder law hour with skip Reynolds. Are we dive into wills trusts powers of attorney and so much more now here's your host skip Reynolds. Welcome back everybody to be C planning an elder law our Whitney skip. Reynolds appreciate you ride with me this Saturday afternoon if you missed any of the first segment I've got with me here Ray Smith used the long term care guy. And if you missed any that even good of the crews in 1430 web site. On that you can go to the weekend show page and then the estate planning an elder a lot hour and find a podcast there. Or you go to my website at WWW skipped in the law dot com go to the radio page and find it there as well. So before the break Greg we were talking a vote you know different types of long term care how much in assets but let's talk about. What are the different forms of long term care the UCL there. Okay it's a that's a good question skip. The most common is what I call traditional. Long term care insurance is kind of hard to say traditional but about a an industry your policy is only been around for maybe. 3035 years but but Yahoo! is that traditional. Stand alone policy. That has the most flexibility. I can design it to. Dance around the table of that's what you want. But we can we can specify all kinds of different things that are important to you like are you go live overseas of you are others. Maybe one from one carrier that is more appropriate than another and those kinds of things. So the traditional long term care policy is a view you pay the premium. I wanna say forever. Because it's not forever until you actually need the benefits you go on claim as that's insurance speak. But you're going claimant typically about ninety days after going on claimed the premium is waves so you don't pay a premium anymore but your receiving benefits. Now these benefits. Typically can be received at home. That is home care or assisted living and even adult day care. Nursing home. And most policies today even cover hospice care to the extent that hospice is not covered by Medicare Medicare not Medicaid. Did two run for an hour they are elderly serious Lindsay turned. 65 yes yes most people lose they think about hospice of all on and Medicare in the same breath they think that Medicare covers all of it. On Medicare covers most of it but does not cover hospice care if you're actually in a hospice facility. Now you're on the hook for the room and board portion of all long term care insurance pool pick that up. Policies. Don't necessarily. Include. Home care especially older policies. When you bought a policy you had a vote choice of including home care were more cost more higher monthly premium our annual premium. But we're not including a lot of people didn't and does it cost more. Because smarts like buy a car with a we can't do it now so much that used to be able by car you with a an automatic transmission or. Standards or stick shift and an automatic across to move a more sure so. But today's policies it would be hard for me if you were to come to me and says it like to buy a policy to only covers. Facility care as did who I really have to search long and hard to find that. But. Going back. 567 maybe ten years is there was more provinces. Have policies have only covered home care or only covered with what's called facility here. Assisted living and nursing home. So if you have a policies are bad for awhile. Please don't make an assumption about it includes home care or doesn't include home care created or if you can't understand it because it's. On offense skipped in both it's it's and legal jargon here we tuck it backwards sucking Nolan we do that right. Don't think so we can keep our jobs cut at that had very good. Okay. But. Is send me a copy of the policy I had a long standing. Offer in this community in metro Denver community event. I'm happy review anybody's policy and play it back to them. I don't charge for it is just something I've I've always done. But I do have to see a copy of a policy that's because every policy from even policies in the same company are different. You may include home care remain out of include ago period may include inflation protection that is. You want the benefits to grow over time as inflation causes the cost of care to increase. Or maybe you don't have and all those things have different cost confrontations. So I didn't if you send me a copy of the actual policy am happy to review it. And senator and send you my review but I have to see the policy itself. So we talked about the traditional policy ongoing premiums. So it's ongoing premiums and how do you make it kick in and start paying with the power play at home or you have. Just the facilities. But before I get to that I wanna make sure that people definitely do contact you re. Have you review those policies because I mean I've looked at some myself. And they're even confusing to me. I'm not sure always what I'm looking that sometimes people bring in ones that are the statement from five years ago in who knows what it looks like today. On so please do take advantage of that. If you would like to have ray review that policy for you it's important to know which you have because if you find out too late. It's too late to fix a problem. Your your responses. To your absolute correct. Well give me a call 303699. And 4172. Or shoot me an email. Ray add Els TC. Insurance. Guy. Dot com either way and I'm happy to chat with you I certainly don't charge. I was on the phone yesterday with a woman who was referred to me and wanted to know more about her policy. But you have the policy in front of her and so I did the best I could not referred to the insurance company directly and I said. Give them a call here's 800 number that I use and they'll help you but but I. One of dealing with the sort of thing constantly and I am happy to do it. I earn my living in in this insurance business for a number of years and loses that's okay it may give back I'm happy to do it. Two to kind of go back to where we were is that a kind of backtracked on this. What. Do we need to so how many what are our qualification. Are paying so how sick do I need to be before this thing won't kick in. OK if you have what's called the tax qualified policy and if you bought it in the last ten years. They almost certainly is tax qualified what does that mean it means that it meets is certain number of consumer. Protection requirements. It's not it's as standardized as say Medicare supplement policies but it's somewhat standardized. What is standardized are the benefit triggers. So it's a tax qualified policy there are six standardized. Activities of daily living bathing dressing. Eating. Or lifting. Continents move at different and transferring. You need to be certified. As needing assistance will at least two of those six. And the expectation. Is that the need for assistance will last at least nine these days. Now our tax qualified policy again. Virtually a 100% of policies sold today are tax qualified and most there over the last ten years or so attacks qualified. But they all have a secondary. Benefit trigger is called severe cognitive impairment. So something like a dementia than. They the best way of thinking avenues you also timers or other forms of dementia. Where your of the Europe and the best way to I can describe it I'm not medically trained that I described that severe cognitive impairment. As your danger to yourself for two others. You might. Turn a gas stove on and forget which turned two on leave the house and Michael wandering across I 25. So it is something like that. That is also benefit trigger. You you. You you can't just wake up 1 morning and decide do I need I need long term care services. As song gonna use my policy you have to do. I have the certification by the way the certification is not performed by the insurance company is by doctor run out by any license. Physician. Any who licensed clinical social worker not sure no offense about the social workers from archer oh. How they got into the mix or any registered nurse. Most often that means you're your own primary care physician your own doctor because your doctor knows you. And knows who knows what's going on and knows what you're. Progression is likely to be and so on. I was so anything. Any physician. British nurse licensed clinical social worker can do that certification. You you. Get certified as needing assistance to at least two to six and they're all standardized activities and doing living. And and the benefits start to flow. So as soon when you get that diagnosis from doctor. Sometimes reluctant to pay out I mean you hear horror stories sometimes about these policies that people have. We do hear horror stories unfortunately there are some bad actors in the industry. I'm an independent insurance broker which means I'm not tied to any one insurance company but I will tell you skip. I am very very careful about the carriers I do take on they've got to have a good reputation for paying claims hassling people. In spite of the consumer protections that are built into the policies. Who with the tax qualified policies. In spite of that there still are some insurance companies that sometimes we lose the playing documents and which to make you jump through hoops I won't represent companies like that. So. And that's important that's another reason for working with a a specialist someone who understands the industry not just 11 insurance company. Sure then and now we talked a little bit earlier okay it's now I get I need to to a six activities and do living. But has some cognitive. Disorder of some sort to me to call the cases for this thing to start paying now. But. You know. There's different what I've heard the term called an elimination period yes and a lot of times they hear ninety days. Can it be shorter can it be longer why would you choose one or vs the other. Yes it can be shorter yes it can be longer but interestingly. The studies that I see publish every year save. The overwhelming majority of a long term care insurance policies do have a nine. Well. Because back historically as opposed to people thinking man what Medicare will government for my first. Nine here hundred days Medicare won't cover you by the way and we can talk about that Margie tale but. It is also seems to be the sweet spot between. If you lessen the elimination period you reduce the premium that you don't reduce it by very much as we go from nine views there 180 days but then you could increase your risk your on the hook for six months of paying for care if you do that. See good than nursing home it's 9000 a month. He three months verses six months a lot of money. It's of them there is a lot of money. And comments shorter and yes you can. Have a sixty day elimination period maybe a thirty day elimination period. There are some policies are still offer zero day elimination period that makes it makes her very expensive policy as skip 11. Thing I've seen develop over the last several years and I like it is a writer that says that if you. Receive care at home if you go on. What's called home care. Your receiving that benefit loses zero day elimination period for their fear and a facility it's a ninety day elimination period. Generalize. So that's an add on to the policy yes that would say okay. They really need care and home will start immediately but if you're going to XYZ assisted living or nursing home ninety days. You can that's correct and here's why that works so well. Most care begins at home most care most of the time. When somebody needs long term care and services and I qualify for event that two out of six activities of daily living it's a gradual thing. The family is concerned about just slipping and falling giving him vest over the shower and so. Assists needing assistance we've stating it happens quickly. And so most fear begins at home and and if you're at home. We get on general rising you have to look east policy bit. If you need care at home and that care last for more than ninety days and then you go to a facility worried you've already met the elimination here. Good things are important to be said about the elimination period one. It's so once per lifetime. You all and doesn't start back over no news there are some policies wort does a stay away from those. But for the most part the elimination period needs to be satisfied once per lifetime. And it's cumulative so let's take the typical nine he gave elimination period. If somebody. Is. Rules decisions skip is an example let's say that you're in a terrible automobile accident. You're in a body cast I go to CU and hospitalized. Punitive doctor this form I'm asking him a certified that you need help put at least two activities are doing living. Doctor looks at me like come from a different planet is is we've talked about escapism. Full body cast he can't even move of course he needs help put everything without at least two. What the doctors suicides it and we start we start the elimination period that and what the doctor doesn't realize is that skip works out. And he's really in great shape so in the end of sixty days 62 days let's just say of the others that well what might have sixty it is my math is easier that way. At the end of sixty days he breaks out of this body cast and he's good and well you've satisfied sixty of your ninety's lifetime days of elimination period. Took an all time thirty love you only thirty. Interesting I didn't know that how worked that's that's actually. Bennett fish guy I always had this well every time you have to go through the new ninety's so it sounds like the devils are in the. They definitely are you really have to look at it carefully and you have to know what you're looking hat. As yet another reason for going with working with somebody who's a specialist. Sure so. Why don't we take a break now we'll come back and talk a little bit more about traditional with some of the other alternatives are. But if they wanna get in touch with you ray and asking questions about long term care have you review appalled see that they might have how to think in touch with. Give me a call 303. 6994172. Or shoot me an email raid at LTC. Insurance guy dot com. And if you missed any part of this second segment or you missed the first part and you wanted to catch up you go to the crews in 1430 website go to the weekend show page. Good to DC planning an elder law and you can find the podcast there. Bring go to my website at skipped in law dot com and go to the radio paging you can find it there as well. We come back we'll continue our discussion about different types of long term care insurance. This is the estate planning an elder law hour with skip Reynolds. Are we dive in the wills trusts powers of attorney and so much more now here's your host skip Reynolds. Welcome everybody back TV is Steve playing an elder law hour hopefully you're having a great Saturday afternoon appreciate you joining us. Got race Smith here the long term care guy we've been talking about long term care insurance. You miss any of the first two segments of the show you go to the show page on the cruise in 1430 website. Wearing go to my website at WWW skipped in law dot com and you can find it there as well. So rim before the break we are talking about traditional long term care insurance yes and while we were outbreak we're talking a little bit and one of the questions that I had for you is OK so I've got a traditional policy pale these premiums. What happens if I just passed away and I don't ever need a policy. I would say congratulations. You've never knew long term care services. It's funny because that question always comes up yet it never comes up with people wanna buy it for example auto and auto insurance. Or. People in your professional in my professional errors and omissions insurance and and I wake up 1 morning and say darn nobody's ever sued me aware of what Imus I should have paid those premiums right well no you you should pay those premiums you've got. Peace of mind from a and that's of that certainly worth the cost of it. But it but it is a question of people oh not often almost always ask. And I think fifth the psychological basis of that is I'd rather not think about. Me not him I'd rather not think about me needing help in getting Tuesday look I'm. Active now I'm healthy I can walk and I can run and I can jump and I can do all these things. And you want me to think about when I can't. Wanted to do that and that's why that question comes up. But I I would suggest too that it's no different then. Homeowner's insurance for example are you gonna complain conservative your house didn't burn down menu and I don't think so. You pay for it anyway just on the off chance that it did yes because. If it does the consequences. Of of the event occurring the consequences of you needing long term care. Are so devastating to your family and if you don't have. A plan in place some plans. Peer review you're in trouble and and it's too late to do anything about it. Absolutely I talk about in my workshops that OK so you don't wanna pay that's just. Make up a premium amount for a couple 5000 a year. For long term care coverage and that might even a little high I don't know very but concede but the Cadillac at 5000 UK okay so you pay for that for twenty years. He's in a 100000 dollars. Oh what if he didn't pay an F 5000 a year and then one of egos of the nursing him he told this is 8500 no 9000 Theo. We're gonna roll through that same 100000 and in less than a year earlier right vs spreading that cost out over twenty years. You view it in you know you don't insure the small stuff you. Who when I first moved to Colorado. I left my family back east we would do want to live the kids finish the school year and we got a house to sell all that kind of thing so I bar microwave or from my new apartment. There was a Sears and Sears have would you like that. Would you like Teva plans so that is a microwave breaks. Will replaces aggressively and a spending 400 dollars for this microwave. I don't want I have to write a check for 400 dollars out of pocket for the fight half there was talk of a Kilmeny. On the other hand if I have to write a check for long term care services which are gonna cost. No matter how short a period of time when you have had in the hundreds of thousands of dollars very quickly. That could hurt so. The ECU do you buy insurance for the big things and and and the impact is that the event occurring. We'll have on you and on your family. So the so. We talked about traditional policies it's kinda pain pain pain pay. On any pay for peace of mind yes and if you need it. You've got it if you don't you had a piece of mind all those years are you paying for what are some alternatives to just to traditional policy well there is a single premium. Policy that I sometimes offer the people who it's it's it's excellent there this is a question what if I never need long term care. But in order to via to have a meaningful long term care benefits on as you you need to be able to move. I was somewhere around a 100000 dollars and two policy. Now when you do that your net worth hasn't changed not not by a dime because you still have access to that money if you wanted. In fact which you can do if you need care that a 100000. We're old will leverage to maybe 300000. Were long term care who need care. If you don't need care and you'd die with the policy still enforce. You're gonna get all your money back in May be a little bit more and a lot more. And the third option is at any point in time you could raise your hand. And say insurance companies send me back my premium the 100000 whatever the number actually turn out to be. No you don't have policy anymore you don't have insurance but she did get your money back. That's very appealing to people especially men who's who think they're bulletproof. And most of those guys do think that. We're vote proved nothing bad will ever happen to us and just spineless policy and make my wife happy. Well we it's making you happy to believe it's just don't know it quite yet. Sure sure so so you pay this in that you don't lose them money but his leverage TV some multiple of whatever you put in for a long term care how does that pay out similar to the traditional policy different is it. The same the same benefit triggers earn play. Two out of six activities of daily living you need to be certified that you need assistance we've at least two the six standardize. Activities and there are living or were you severe cognitive impairment either way. Who will do that. You know boardwalk while we're talking about benefits you could do. You you can buy a policy that will cover. Just about everything but I won't sell to prison will be too expensive. And you shouldn't spend that much I don't think you should. Or you could buy a very basic policy and it's funny because all the pundits will will say two things. Those say you've got to have long term care insurance and immediately following that statement also but it's too expensive nobody can afford it. The second thing is not true. Understand you not to be excellent no he just can't have any. Bad diagnoses hanging on. But a healthy sixty year old male female couple. Or same gender couple. Will cost about. Well you you provide basic policy for a thousand dollars a year covering two people on that now if that's not affordable. Then the long term care insurance is is not for you and I will tell you got going for speak. OK so he talked about a six here a couple. Wind should people start looking at it when is it to leak if there is such a thing I'll be looking at long term care. Excellent question will absolutely. When you're eighty years old is too late Chris nobody will so you policy a 79 is about as old loses it gets an a here over eighty years you're just kind of cooked. We unite cookies still have to have a plan but you but you don't have the option of buying long transparent jumped a cut and you really don't want them by long term care insurance 179 years old because it's going to be very very expensive. So I would say I would look here's what I tell people. Massa question often what's the best stage to buy long term care insurance and that is. Will look let's first look at your other responsibilities. You have enough life insurance or your bid if you're married you have small children. They are all depending upon you and if you're not here to earn an income. That in bed and come has to be replaced and life insurance is the first thing second thing you see a disability insurance is here. Younger and anger working and you have heard her interview with the with the income generation coming. Editors got to have that. Do you do in the young children and do you want them to get educated is most people do not everybody. But if you want to move become educated do you have college fund started and if you've got all these things covered you still have some discretionary income. If you're as young as a forty. I will be happy to talk to about long term care insurance. But for most people it's. From about fifty to 65 that's the age of most of my clients. Were at the time that they've they've bought the insurance from me. Or through Maine. Insurance company has left I don't want every industry is it. I am the in between the facilitator of person to guide you to the right kind of a policy is first of all if a policy makes sense for you. Sure sows so it sounds like the sweet spot it's fifty to 65. But one of the things I say is the longer you wait the more likelihood that you'll have some event happen to you they'll be a disk called fire because you have to go through. Quite a vetting process and talked briefly about what that qualification process serves like. I've mentioned that you have to be healthy will you do. I hear her a couple of things you are absolutely. Will knock you out not not let you buy long term care insurance. If you had been diagnosed with any kind of dementia views and nobody's going off for too long term care insurance. If you're using oxygen as this this happens often if you're using oxygen and deny either in the daytime. You're not gonna get long term care insurance if you have. And message you have parkinson's. You're not now if you've had cancer. And it's been more than a couple years ago and has metastasized. Those who hasn't spread. Depending on the kind of cancer with a grade was and so on. You can get long term care insurance though reasonable prices as well since they would. With heart attack people think of I've ever had a heart attack from never variable bit long term care insurance. But he had a hard tonight yesterday you can't buy a long term care insurance today. The low a couple of years go by with no recurrence and then you and your good. I take pride in and working with the is more difficult cases I work with the under runners directly. I speak to them directly and I argue with them both all the time. You really advocating for your clients know for sure true absolutely for sure. I don't I'm not loyal to any insurance company I'm loyal to my clients and and my concern is how are we gonna do how we gonna have come up with the best possible plan. 44 each each person now. You don't necessarily have to buy long term care insurance which is due necessarily have to have a plan. To explain what that is just briefly I mean that's Jason he either can't or 48 can qualify for. How how did they planned for this. Well you you can. If if let's let's say you choose your view don't qualify medically that means of long term care insurance is off the table is not an answer for you. Because nobody no insurance company will sell it to you. OK so what are your choices you itself fund if you have enough assets not the best way to go but which could. And the safety net really is Medicaid. My sorry no and Medicaid now Medicare or else Medicaid the even I sometimes confuses two. So the so it's not the best way to go when you won't die in the street view of you'll you'll be taking care of the disease. There are annuities but I don't like a new and long term care annuities. Today because interest rates are so low and in numbers just don't end up. Book but there are some other things in what you really have to do is think it through. I'm healthy today but I'd probably won't always be when I'm not and I need help in getting through today who's gonna provide long term care how does that kind of happen. And I went and where do I wanna receive that care you in an ideal but also in a non ideologues I think. So often when I see in my office is set. You know. Every race thinking of the best case scenario and really wit both of us are doing is we're helping protect from the worst case scenario where you. So that your protected in your state is protected and covered that may look for you you're you're absolutely right. So really I really appreciate you being on here today love to have you come back if you're willing. On but how can people be in touch with you so that they can know really benefit from your service. Us skip the best way to reach me is pick of the phone call and if I'm not their leave a voicemail all get back to you. My phone number 3036994172. Where you'd rather shoot me an email. LTC. Insurance guy dot com. And take a look at my website is is really educational www. LTC insurance guide dot com and thank you so much for having me on your program. Hey it's been my pleasure AI I learned a lot today hopefully everybody out there did as Welch if anybody missed any part of the show. You can go to you decrease of 1430 website go to the weekend show page. Good estate planning and held realize our need to find the podcast there. Or go to my website as skipped in law dot com you can find it on the radio page there as well if you've got questions for ray can reach out to him directly. Or if you have questions for me or something for rainy can't remember his information for some reason. You can contact Miette info at skipped in law dot com. And I will give back your forwarded on to ray. For those of you listening you know I do workshops out there so wanna give you an update on when those workshops are here for the month of September. So I've got three coming up I've got one Monday September 18. From six to 8 PM at the lone tree library. And I've got another one Tuesday the 26. And again Thursday the 28. All at the lonetree library that 26 is from one to 3 PM. And the twentieth this from ten to noon so if you wanna sign up for one of those can go to my website and go to the workshop page. And you can sign up right there or you can call my office at 7204402774. If you have any questions you can get in touch it Miette info at skipped in law dot com and for those of you listening if you come to one of these workshops here in September. And you come in immune meet with BM we do any. Major planning for you I will give you 10% off your estate plan. So appreciate you taking time to listen to myself and my show and I think Ray Smith again for being here this Saturday afternoon. Have a great rest of your weekend and look forward to talking to you next. Thanks for listening to the estate planning an elder lauer would skip Reynolds. Tune in next week where we talk about some great new topics this is the estate planning an elder lauer with skip Reynolds that's every Saturday from two to three on cruise in 1430. You can Reynolds is a licensed attorney Colorado all the stories and content of this state planning and overlook our are not intended to be direct legal advice they -- for illustrative purposes only additionally no attorney client privilege has been performed with the law offices have been Reynolds LLC for Steven Reynolds that's why are -- to seek legal counsel before making any estate planning or elder Watson did all of the views of the guests of the show are their own and are not views of the law officers have been Reynolds LLC or skipping right over Esquire. Nor is there appearance and endorsement of goods or services for the law offices at the Reynolds LLC were skipping Reynolds Esquire.
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