Financial risks of long-term care
One of the risks I often see clients ignore is the financial risks caused by long-term care. The reason is obvious. This is one unpleasant and costly risk to deal with. It seems when clients have
had family members go through these circumstances, they are more acutely aware of the potential costs and challenges, as well as the desire to be sure they plan for their own needs in a manner that fits their wishes.
There are limited solutions to this problem, but there are various possibilities. First, insurance can provide a means of at least mitigating these costs. There are multiple kinds of insurance products now, but admittedly these have cost. The cost is less than paying out of pocket, but it’s not small. The alternative is trying to give assets away to heirs or an irrevocable trust, but these have the drawback of limiting one’s access to the funds involved. However clients decide to deal with these risks, some plan is much better than no plan.
--J. Christopher Boyd, Asset Management Resources, LLC, Hyannis, Mass., 02601, 508-771-8900