Long-term Care Objectives

• The long-term care period cannot extend past the end of the life expectancy for the selected client.
  • If a longer long-term care period is required, the life expectancy must be increased on the Milestones page (Plan Management section - Assumptions category).

• Non-qualified and qualified assets are available at the start of long-term care.
• Lifestyle assets are available for the estate.

Follow these steps to enter a long-term care insurance goal in the event that a client becomes disabled

1. From the Objectives container, select the If <client/co-client> is in Long-Term Care option.

Assumptions subtab

1. Define the age at which the selected client will enter long-term care using either the at age or the in <year> field.
2. Review the data under the ROR on Surpluses & Liquidations section.
3. If you are using the Average Tax Method, you can override the values under the Tax Rates section. If you are using the Detailed Tax Method, skip this step.
   You can select Override Tax Rates and enter new data. Changing tax rates here only affects the tax rates for long-term care calculations, not for the rest of the plan.

LTC Expenses subtab

1. By default, NaviPlan assumes that 100% of lifestyle and medical expenses will continue in a long-term care situation. To modify this assumption, enter a new value into the Percentage of lifestyle and medical expenses to cover field under the Annual Expenses section.
   • You can further qualify the Percentage of lifestyle and medical expenses to cover in the event of a disability and survivorship situation (e.g. the surviving client becomes disabled) using the Survivorship field.
   • Furthermore, for each of the expense types listed under the Expense heading you can clear the Use Defaults option and enter a new percentage to cover.
2. Use the Add Additional Expense button to model any additional expenses that apply during the long-term care period.
   Note: NaviPlan treats the Additional Expenses as monthly cash flow items, and not as annual expenses that occur on a specific anniversary. Although you enter the annual dollar amount, NaviPlan divides this amount by 12 to determine the monthly amount for calculation purposes. The monthly expense is assumed to end upon the End Date defined.

Income Adjustments During LTC subtab

1. This subtab shows all incomes for the disabled client as defined on the Cash Flow page. You can modify what percentage of these incomes will be available during the long-term care period by entering a percentage value into the Owner in LTC field.

Asset Availability subtab

1. This subtab displays all assets in the plan and allows you to indicate whether or not each asset is available to help cover needs in a long-term care situation.
   • To indicate that an asset is available immediately in a long-term care situation, select Available During LTC or Liquidate At LTC (depending on the type of asset).
   • To indicate that an asset is not available to cover long-term care needs, select Not Available.

Note: The Education Specific Accounts container is present on this page for informational purposes only and cannot be modified. This list includes all 529 plans, Coverdell accounts, and UTMAs/UGMAs.

1. From the Long-term Care Insurance Analysis to Include section, select the appropriate If <clilent/co-client> enters LTC option.
   • The age at which long-term care begins is based on the age of death set on the Retirement page. By default, the client is assumed to require long-term care for a period of four years starting on January 1 of the year in which the client turns 80, and the client is assumed to die at the end of this period.
2. From the Objectives section, enter the Percentage of lifestyle and medical expenses to cover during the long-term care period.
3. Enter the amount of any additional daily long-term care expenses for <client> and/or <co-client>.