This was the question asked by one of the callers during a recent AgingOptions radio show. This is a very common & good question that I get from my listeners & clients all the time. The answer to this question is if your estate is worth between 50k -1.5 million dollars, you should take a very good look at the Safe Harbor Trust. These are the estates where people have worked very hard all their life, they have said no to expensive vacations, no to the brand new car every year. They have set aside money for the house that is paid for & a few hundred thousand dollars in bank. These estates are now venerable to the Long Term Care cost, which is very expensive. The average cost can range anywhere between 8k – 15k per month.
Some of the exceptions to choosing a Safe Harbor Trust is having a very very good Long Term Care Insurance Policy with life time paid benefits or if your estate is worth more than 1.5 million dollars. Here the issue is not the asset preservation but the care management. You should not ignore the importance of care management if you are looking for dignity & quality of your life in retirement.