Personal Finance After 50 For Dummies, 3rd Edition
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Copyright © 2016 Eric Tyson and Bob Carlson. All rights reserved.

You may want to consider a long-term care policy when planning your finances after 50. Most states participate in a program known as the Long-Term Care Partnership Program. The purpose of the program is to encourage people to purchase private long-term care insurance that meets requirements established by the state.

If you live in one of these states and purchase a qualified long-term care policy and keep it in force, the Long-Term Care Partnership Program offers you two key benefits:

  • The program increases the amount of exempt assets you can own and still be eligible for Medicaid.

  • Your beneficiary’s estate may be exempt from the estate recovery process.

Suppose you live in a state that participates in the Long-Term Care Partnership Program and you purchase a long-term care insurance policy providing maximum lifetime benefits of $100,000. You enter a nursing home and after a couple of years use up the insurance benefits and apply for Medicaid. The state will allow you to keep up to $100,000 of assets in addition to other assets allowed under Medicaid. In addition, all or part of your estate may be exempt from the recovery process.

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About the book authors:

Eric Tyson, MBA, is a personal finance writer, lecturer, and former management consultant to Fortune 500 financial service firms. He is the author or coauthor of more than 20 Dummies books on personal finance. Bob Carlson, JD, MS, is chairman of the Board of Trustees of the Fairfax County Employees Retirement System. He's been the editor and publisher of a monthly newsletter on the financial aspects of retirement since 1991.

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