Military Officer - April 2008 - (Page 50) financialforum Part 3: LTC Steps Creating your long term care (LTC) plan should not be a lastminute endeavor. By taking a few necessary steps, Phil Dyer, CFP, shows you how to protect yourself and your loved ones. I Make Sure You’re Financially Ready I MOAA offers an online calculator to help you determine if you’re financially prepared for long term care. Visit www .moaa.org/calculators, click on Insurance Calculators, and scroll down to Long Term Care Calculator. n parts one and two of this series, we discussed the myths and options associated with LTC planning. We now will close this three-part series by looking at some of the steps to creating your LTC plan. Consider the following action plan: Step 1: Organize your financial life. Take time to organize your financial life (or assist your parents in doing so). Nothing complicates LTC planning more than having accounts spread over a dozen different custodians with no centralized recordkeeping. If you have been using your own filing system for the past 40 years — one you know intimately, but others might not understand — it might need to be revised. Marshalling and organizing assets before LTC is needed can be a huge time-saver. Step 2: Review your documents. Does your will meet your current needs? Does your revocable living trust need to be updated? Do you have a living will and health care power of attorney? Common problems with out-of-date documents include executors, personal representatives, trustees, or other named persons being deceased or incapable of performing their function; assets that have been purchased (or sold) in intervening years; and documents that have not kept up with tax law changes. Step 3: Hold a family meeting. Once everything is updated and organized, consider holding a family meeting. In many families, discussions about money, death, and taxes are just short of taboo, but it is critical to initiate these discussions while all parties are capable of effective communication and there is time to update and adjust existing plans. Often, having a neutral third party, such as a trusted family advisor (attorney, financial planner, or CPA) facilitate the meeting can make the process much less stressful. The meeting doesn’t need to be in person. Many professionals have teleconference and videoconference capabilities, and free teleconference services such as www .freeconferencecall.com will virtually bring family members from around the world to one place. Step 4: Put any care plans in writing. Care plans developed during the family meeting should be put in writing, with all interested parties receiving a copy. For instance, if you wish to go to a specific retirement home or continuing care retirement facility, put that in writing so there are no questions. Likewise, if you will be the primary caretaker for elderly parents, but siblings will be contributing time and money toward their care, make sure you write that down. A few planning precautions can avoid misunderstanding and hard feelings in the future, so take these steps early. MO — Former Army Capt. Phil Dyer, CFP®, is deputy director, Benefits Information and Financial Education. To find a financial planner near you, contact Garrett Planning Network at (866) MOAA-GPN (662-2476) or www.moaa .org/garrett, or visit www.moaa.org/financial center for other resources. PHOTO: SEAN SHANAHAN 50 MILITARY OFFICER APRIL 2008 http://www.freeconferencecall.com http://www.freeconferencecall.com http://www.moaa.org/calculators http://www.moaa.org/calculators http://www.moaa.org/garrett http://www.moaa.org/financialcenter http://www.moaa.org/garrett http://www.moaa.org/financialcenter
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