Should I consider long-term care insurance during the estate planning process
I always encourage clients to consider buying long-term care insurance. The cost of maintaining a disabled or incapacitated person, trustor in this situation, is an ever-increasing cost. Now, estate planning, when done properly, takes into account how to provide for the incapacitated or disabled trustor. However, because those costs are increasing all the time, it may make good sense, economically, for them to obtain long-term care insurance so that there is a constant source of funds in addition to the other assets in the trust to help take care of that person during any period of incapacity and encourage them, take them, lead them, go to a qualified estate attorney and get it fixed.
Note: The Tax Cut and Jobs Act of 2017 signed into law in December 2017 increased the exemption amounts mentioned in these videos. The personal estate, gift, and generation-skipping tax lifetime exemption was increased to $11.18 million per person. The annual gift tax exclusion was increased to $15,000 per donee per year.
Both amounts are indexed for inflation and may increase year over year until December 31, 2025, when the law sunsets and reverts to 2017 values