Laurie Kane Burkhardt, CFPA®

When deciding on long-term care insurance, forward-thinking seniors should explore their eligibility options to make the best choice for their futures

	Congratulations, you had the foresight to purchase long-term care insurance. You understood this may mean paying premiums for many years to transfer the risk you might need to utilize the policy’s benefits, because the cost of absorbing this potential risk is high.  

	Do you understand the features included in your policy and how to access them if needed? What levels of care are covered? What are the dollar values and limits of your coverage? When and how might you be eligible to receive benefits? Can your benefits be adjusted?

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The amount and duration of benefits often drive the relative cost of the policy, and you likely explored different options when deciding how much you were willing to pay for your initial premium. The policy will specify the amount of coverage you selected as your daily benefit — typical options range from $100 to $350 per day.  How long can you receive benefits?  Policies usually specify a limitation on the duration of benefits in terms of dollar amount per year or over your lifetime.  They may alternatively spell out a time limit during which you can receive benefits.

Typically, your eligibility to receive benefits will be based on your inability to perform two or three activities of daily living. In such situations, you would require assistance bathing, dressing, toileting, eating, continence or transferring from bed to chair. Cognitive impairment may or may not be covered and prior hospitalization may be required before you can qualify for benefits. Often, you will be asked to provide a doctor’s certification that you require assistance.

Your policy will specify an elimination or waiting period before the insurance company will pay for your care. This period typically ranges from 30 to 100 days, during which you will be responsible for paying for your care. Your policy may also specify a waiting period to be imposed for pre-existing conditions before coverage begins.

Your policy may include an inflation rider, which automatically adjusts the dollar amount of your coverage for inflation to protect the value of your insurance as care costs rise. Inflation protection is usually a feature you would have selected when you purchased the policy. The rate may be calculated as a simple or compound rate. Your policy may allow you to purchase additional coverage after a certain period, and it could be a good idea to familiarize yourself with the availability of this feature.

Your policy may have been issued as an individual policy or as a shared policy with your spouse. A shared rider allows you and your spouse to share a pool of benefits at an additional cost. Long-term care policies can include other benefits, such as a waiver of premium once you are collecting benefits. Return of premium is subject to specific conditions and a death benefit is payable to a specified beneficiary upon death of the insured.

Features of long-term care policies can differ significantly, and we highly recommend our clients strive to understand their coverages long before they need to access their benefits. It may also be a good idea to discuss your coverage with your adult children, since they might be involved in future decision-making about your health care.

Disclosure: Modera Wealth Management, LLC (Modera) is an SEC registered investment adviser with places of business in Massachusetts, New Jersey, Florida and Georgia. SEC registration does not imply any level of skill or training. Modera may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements. For information pertaining to Modera’s registration status, its fees and services and/or a copy of our Form ADV disclosure statement, please contact Modera or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). A full description of the firm’s business operations and service offerings is contained in our Disclosure Brochure which appears as Part 2A of Form ADV. Please read the Disclosure Brochure carefully before you invest or send money.

This article contains content that is not suitable for everyone and is limited to the dissemination of general information pertaining to Modera’s investment advisory and financial planning services and general economic and market conditions. Nothing contained herein should be interpreted as legal, tax or accounting advice, nor should it be construed as personalized investment, financial planning or tax planning advice. For legal, tax and accounting-related matters, we recommend that you seek the advice of a qualified lawyer or accountant. Past performance is no guarantee of future results, and there is no guarantee that the views and opinions expressed herein will come to pass. This document contains forward-looking statements that use words such as "anticipates," "projects," "believes” and/or "expects," which indicate future possibilities. Due to known and unknown risks, other uncertainties and factors, actual results may differ materially from the expectations portrayed in such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this document. Investing in the stock and other markets involves gains and losses and may not be suitable for all investors. Information presented herein was accurate at the time of publication, is subject to change without notice and should not be construed as a solicitation to buy or sell any security or to engage in a particular investment, financial planning, tax or other strategy. Diversification does not guarantee a profit or guarantee against a loss.

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Articles

Purchasing long-term care insurance is an inevitable part of becoming a senior. However, disentangling the advantages and disadvantages of a given plan can be overwhelming. For those who have already secured a policy, it is important to understand its features and limits. This financial planner will help you break down your coverage to ensure your needs are met. 

Deciphering Your Long-term Care Insurance Policy in Advance

As an executor, you do not need to have legal or financial expertise, but you do have a “fiduciary duty” to carry out your responsibilities with honesty, fairness and diligence on behalf of the deceased party. 

Your parents are updating their wills and possibly their trust documents, and they just asked you a huge question: “Will you be the executor of my estate?” You are honored and flattered that they trust you enough to give you that responsibility, but you are also petrified because you do not know what it entails, and it sounds like it could be too much responsibility.

The primary role of an executor is to watch over a deceased person’s assets while appropriate payments are made to settle the estate, including handling unpaid debts and taxes. Then, after paying all amounts owed, an executor makes sure that assets are distributed to the appropriate beneficiaries.

As an executor, you do not need to have legal or financial expertise, but you do have a “fiduciary duty” to carry out your responsibilities with honesty, fairness and diligence on behalf of the deceased party. Typical responsibilities for an executor include the following:

· Locate estate planning documents, including the will and trust documents, and obtain multiple copies of the death certificate. Each of the financial institutions that you will be communicating with will require the death certificate (among other documentation) to allow you to access the funds and/or close out the account.

· Determine if the will needs to be filed in probate court. This decision can depend on state laws and the value of the property that will pass via the terms of the will. Generally, any assets with a beneficiary designation will pass to the heir(s) directly (irrespective of the terms of the will) and do not require probate proceedings. Additionally, if spouses own assets such as a home as joint tenants with rights of survivorship (JTWROS) or tenants by the entirety, then the surviving spouse would inherit the deceased’s ownership in the assets without probate.

· Identify each asset owned by the deceased person. As executor, you will be responsible for managing the assets until they are distributed. This may involve deciding whether an asset should be sold or retained.

· Determine who will inherit all or part of each asset and contact each person. If no beneficiaries have been designated or if the person died without a will, state intestacy laws dictate who would receive the assets. Many states’ laws are designed to distribute a deceased person’s assets to close relatives such as surviving spouse, children or grandchildren, parents or siblings.

· Notify appropriate institutions of the death, including credit card companies, banks and the Social Security Administration.

· Set up a bank account for the estate to hold income received after death and pay debts and expenses. The bank may retitle the deceased’s checking account to the estate for this purpose. Use estate funds to pay ongoing expenses and debts.

· Make sure that a final federal and state income tax return is prepared and filed for the year of death. If the deceased has a large taxable estate, you may also have to file state and federal estate tax returns within nine months of the date of death.

· Make sure that all property is distributed properly according to the beneficiary designation forms or stipulations of the will or trust document.

As you go through each step, consult with legal or tax professionals as appropriate. The time entailed in handling all of the items mentioned above varies depending on the complexity of the situation, but the average estate administration can take up to a year or more, so be aware before you accept the responsibility.

Disclosure: Modera Wealth Management, LLC (“Modera”) is an SEC registered investment adviser with places of business in Massachusetts, New Jersey, Florida and Georgia. SEC registration does not imply any level of skill or training. Modera may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements. For information pertaining to Modera’s registration status, its fees and services and/or a copy of our Form ADV disclosure statement, please contact Modera or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). A full description of the firm’s business operations and service offerings is contained in our Disclosure Brochure which appears as Part 2A of Form ADV. Please read the Disclosure Brochure carefully before you invest or send money.

This article contains content that is not suitable for everyone and is limited to the dissemination of general information pertaining to Modera’s investment advisory and financial planning services and general economic and market conditions. Nothing contained herein should be interpreted as legal, tax or accounting advice, nor should it be construed as personalized investment, financial planning or estate planning advice. For legal, tax and accounting-related matters, we recommend that you seek the advice of a qualified lawyer or accountant. Past performance is no guarantee of future results, and there is no guarantee that the views and opinions expressed herein will come to pass. Information presented herein is was accurate at the time of publication, is subject to change without notice and should not be construed as a solicitation to buy or sell any security or to engage in a particular investment, financial planning, estate planning or other strategy. Diversification does not guarantee a profit or guarantee against a loss.

Serving as the executor of an estate is no small task. While you might feel honored or flattered if your parents ask you to take care of this major responsibility, you need to know what you're in for. You don't need any legal or financial expertise, but you do have certain obligations to uphold. What follows is an overview of what's expected of you under the law.

You've Been Named Executor for Your Parents' Will. Now What?

 is one of the world’s premier educational institutions. And 2. 

Harvard has the largest U.S. college endowment

, which employs a staff of 230 to oversee investment of the endowment, has received criticism in recent years for insufficiently adapting to market conditions since the market crash of 2008. In the 1990s and early 2000s, Harvard’s endowment performed better than its peers with investment strategies that were characterized by managing a large portion of its funds internally with little coordination among investment managers and by holding a significant percentage of its assets in long-term illiquid private investments.

This strategy was appealing because the size of Harvard’s endowment affords it a much longer time horizon than most other foundations and nearly all individual investors. When the market crashed in 2008, however, Harvard’s managers felt compelled to get out of many of those illiquid assets at what turned out to be the bottom of the market and sold them at the most inopportune time. In recent years, Harvard has strived not to over-commit to illiquid assets, but the endowment has never quite recovered from its past losses and has struggled to turn around its performance.

Since 2008, the endowment’s performance has been inconsistent relative to its peers, and for fiscal year 2016 (the 12 months ending June 30, 2016), Harvard lost 2 percent on its investments. In comparison, a hypothetical index portfolio with 60 percent of its assets invested in global stocks and 40 percent in global bonds would have returned +2.3 percent over the same time. The annualized 5- and 10-year performance of the endowment has also lagged its peers. For example, Harvard’s average 5-year return was 5.9 percent while Yale’s was 10.3 percent for the same period.

As a result of the fund’s lagging performance, Harvard recently announced sweeping internal changes, including an overhaul of management and plans to cut staff by half over the next year. Most of the funds that had been managed internally will be outsourced, and the endowment’s reward system will be revamped to be more closely aligned with overall performance.

So what can individual investors learn from Harvard’s experience with its massive endowment? You may want to take a look at your own portfolio or pose the following questions to your investment advisor.

· Is my portfolio adequately diversified to reflect global asset classes?

· Do I hold any illiquid assets in my portfolio, and what could be the impact of seeking to get out of them?

· How is my portfolio structured to address the challenges of a low interest rate environment?

· Has my portfolio produced short- and long-term returns that mirror appropriate benchmarks?

Harvard’s significant advantages of size and scale have not helped it avoid performance challenges, and individual investors are even more vulnerable to challenges of market and economic trends. If you are not satisfied with the responses to questions such as these, you may want to rethink your investment strategy.

Modera Wealth Management, LLC (“Modera”) is an SEC registered investment adviser with places of business in the Commonwealth of Massachusetts, State of New Jersey, State of Florida and State of Georgia. SEC registration does not imply any level of skill or training. Modera may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements. For information pertaining to Modera’s registration status, its fees and services and/or a copy of our Form ADV disclosure statement, please contact Modera or refer to the Investment Adviser Public Disclosure web site (

). A full description of the firm’s business operations and service offerings is contained in our Disclosure Brochure which appears as Part 2A of Form ADV. Please read the Disclosure Brochure carefully before you invest or send money.

This article contains content that is not suitable for everyone and is limited to the dissemination of general information pertaining to Modera’s investment advisory and financial planning services and general economic and market conditions. Nothing contained herein should be interpreted as legal, tax or accounting advice, nor should it be construed as personalized investment or financial planning advice. For legal, tax and accounting-related matters, we recommend that you seek the advice of a qualified lawyer or accountant. Past performance is no guarantee of future results, and there is no guarantee that the views and opinions expressed herein will come to pass. Investing in the stock and other markets involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be construed as a solicitation to buy or sell any security or to engage in a particular investment, financial planning or other strategy.  Diversification does not guarantee a profit or guarantee against a loss.

The handling of Harvard's endowment has garnered a great deal of financial scrutiny lately. Though the amount of money managed by the university is much larger than what a typical individual investor would handle, there are still lessons to be learned here.