planning for chronic illness 1 planning for chronic illness estate, tax, financial, insurance, legal...

Planning for Chronic Illness 1

Planning for Chronic Illness Estate, tax, financial, insurance, legal and other practical planning considerations for those living with chronic illness, their caregivers and advisers

Hosted By:

CareOne, [email protected]

Presented By:

Martin M. Shenkman, CPA, MBA, PFS, JD, Paramus, New Jersey. www.laweasy.com and www.shenkmanlaw.com.


Planning for Chronic Illness

Caution: Nothing in these slides or any accompanying presentation is to be considered legal or professional advise. The information is merely provided for educational purposes and no action should be taken without the individual consulting his or her own tax, estate, legal, financial, investment, insurance and other advisers.


Part 1: Introduction to Planning for Chronic Illness 120 Million American’s are living with chronic illness Chronic illness affects every aspect of planning Variability – Advisers Must Ask; Clients Must Tell Every legal document, plan, etc. has to be tailored to address chronic illness Standard documents and planning will often not protect

the person living with chronic illness


Part 1: Insurance Planning for Chronic Illness Life Insurance

Policies that include cash value in death benefits vs. that don’t

Accelerated Death Benefits Borrowing Against Cash Value Viatical Settlements Sale versus Cash Surrender Value (CSV)


Part 1: Insurance Planning for Chronic IllnessDisability Insurance

Residual versus Total Disability Proving Disability with an “Invisible” Chronic Illness Relationship with Other Arrangements: Business

Overhead Insurance; Employment Agreement; etc.


Part 1: Insurance Planning for Chronic IllnessLong Term Care Insurance

Provisions to Consider Obtaining Coverage Combo Products with Simplified Underwriting


Part 2: Estate Planning for Chronic Illness Competency Considerations Beneficiary Designations Setting Up/Moving Accounts Title to Accounts (Ownership)


Part 2: Estate Planning for Chronic Illness

Powers of Attorney: Combining a Limited and General Power Defining Disability Springing versus Immediate HIPAA language Compared to Living Trust


Part 2: Estate Planning for Chronic Illness Living Wills and Health Care Proxies:

Addressing Specific Disease Conditions HIPAA language Organ or Tissue Donations Religious Issues Risky, Experimental and Other Treatments Naming Agents


Part 2: Estate Planning for Chronic Illness Revocable Trusts:

Independent Social Worker Periodic Interview HIPAA language Institutional Trustee Home Improvements and Modifications Pay for Experimental Treatments Desired Accommodations and Living Arrangements


Part 3: Financial Planning for Chronic Illness Cash Flow and Budgeting:

Distributions from 401(k) and IRA Accounts Home Equity Lines Borrowing from 401(k) Plans Other Cash Flow Sources Special Expenses to Budget (e.g., Home Accessibility) Other Expense and Budget Considerations


Part 3: Financial Planning for Chronic Illness Investments:

Risk versus Reward – What is Appropriate for You Investment Strategies Liquidity Guaranteed Income Options Non-Insurance Programs with Beneficiary Protection


Part 3: Financial Planning for Chronic Illness IRAs (Individual Retirement Accounts):

Access to IRA Assets Without Penalty Spousal Beneficiary IRA Unique Provisions Roth IRA Conversion Analysis


Part 3: Financial Planning for Chronic Illness Other Financial Considerations:

Access to Safe Deposit Boxes Consolidation and Simplification Automatic Monthly Payments; On-Line Bill Pay Organizing Records and Documents Duplicate Monthly Statements


Part 4: Charitable Planning for Chronic Illness Charitable Planning and Chronic Illness Generally CGAs – Charitable Gift Annuities CRTs – Charitable Remainder Trusts Charitable Bailout of Closely Held Business CLT – Charitable Lead Trusts


Part 5: Income Tax Planning for Chronic Illness Modification of Your Home – Medical Tax Deduction Special Tax Treatment of 401(k) Plans Disability Insurance Proceeds Proceeds on Settlement of a Discrimination or Other Claim - Taxability Deductibility of Legal Fees to Obtain Settlement Basis Step Up Planning


Action Points:1.2.3.4.

Additional Notes: