A recent change with one of our carriers has opened up the ability to fund a Linked Benefit Long-Term Care plan with Inherited IRA funds. The Secure Act changes several years ago hampered what many inheritors we able to do with these qualified funds. Liquidation of these funds within 10-Years of the date of death is requited. This new configuration allows for funding to occur within that 10-year window from the date of death and funds a 10-Pay Whole Life policy. Along with the Death Benefit and Cash Value, this plan provides a giant Leveraged pool of Tax-Free Long-Term Care Coverage.
This plan is also available for Joint coverage. One spouse’s Inherited IRA can fund Long-Term Care coverage for both of them. This plan can also be considered for inheritors that have already begun liquidation of the inherited IRA and have several years remaining (no later than 5 years from the date of death).
Let us know if you have a client looking for Long-Term Care coverage. We’d be happy to help!
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