The Biggest Threat to Your Nest Egg

8:45 pm Asset Protection, Estate Planning

golden eggs 150x150 The Biggest Threat to Your Nest EggEven if you have done everything right for retirement – invested in a 401(k), IRAs, diversified portfolio, and have significant cash savings – everything could be lost to long-term health care costs if you don’t work equally hard to protect your assets.

The fact is that most people do not have significant enough assets to pay for long-term care for one or both spouses, but still have too much to qualify for Medicaid.   While you can “spend down” your assets five years before you anticipate needing Medicaid benefits to qualify, this goes against the grain for most people who have saved their whole lives to accumulate their assets.

Fortunately, California is one of several states that offer long-term care partnership programs that allow you to purchase enough insurance to cover the assets you want to protect.  The California Partnership for Long-Term Care is an alliance between the State of California and a select group of private insurers to provide policies that allow you to keep a dollar’s worth of assets for each dollar your partnership policy pays out for long-term care, enabling you to still maintain your ownership of your assets.  In effect, you purchase a partnership policy that is equal to the amount of asset protection you want.

A partnership policy also allows you to pass assets to a spouse, children or other family members because it exempts protected assets from Medi-Cal estate recovery.

Contact our Orange County law firm for more information about partnership policies and the asset protection these long-term care policies provide.

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