High Net-Worth Asset Care
It is estimated that there are over 8.3 million individuals in the United States who receive some form of regular Long Term Healthcare. According to all available statistics, that number is expected to exponentially increase and even double by 2030. Increased life expectancies and increased health risks are major factors in what analysists are predicting.
Based on a 2015 study by the US Dept. Of Health & Human Services, it is estimated that 17% of seniors will need over $100,000 in addition to additional insurance to meet their cost of care. According to an AARP study, over 90% of individuals over age 65 wish to stay in their homes as long as possible in the event of care with 80% of them expecting to continue in their homes until death.
As one can see, the costs associated with Long Term Care could possibly reduce or even eliminate an estate, especially since State Assistance through Medicaid requires one to SPEND DOWN certain assets to levels of poverty before financial assistance can be delivered.
Retirement Plan Assets & The Law
It is estimated that, as of 2021, that there are $11.8 Trillion associated with IRA's in the United States. A growing number of individuals do not "need" to access their IRA annually or in any other manner to meet living expenses and expenditures during retirement years. Many of these individuals instead, plan to give these unused retirement assets to their next generation family members through the estate planning process.
However, not only is there a concern about the effect of Long Term Healthcare costs, but as it pertains to an estate, there is an wrinkle to all of this that many are unaware of. The Secure Act of 2020 eliminated (with 5 Limited Exceptions noted HERE) what was called "the stretch IRA" which allowed retirement plan beneficiaries the opportunity to stretch out distributions over their lifetime resulting in a significant delay or reduction of taxes assessed upon the beneficiary of inherited funds. Due to this change, many children inheriting IRA's will be forced to pay ALL taxes associated with inherited funds within 10 years of death of the retiree, IF those funds have not had to be used (paying taxes along the way) for Long Term Healthcare expenses and expenditures.
A carefully designed Dunamis Asset Based Care plan could eliminate most, if not all, of the concerns associated with providing for Long Term Healthcare expenses, current and pre need cash flow and liquidity requirements, the elimination of taxation associated with an inherited IRA or retirement account subject to the Secures Act 10 year distribution rules and significantly enhance the value of the estate through managed tax free growth creating a more financially viable estate.
Planning in this area requires meticulous attention to detail and knowledgeable expertise to assess and advise clients on what steps to take. It also requires that clients be perfectly situated to take advantage of the many benefits associated with this type of planning. Therefore, Dunamis has developed a high net worth asset based program designed specifically for clients with assets over $500,000. Individuals with lesser assets may qualify for services in this area as well. A FREE assessment will be done to determine eligibility.