F.46 Eldercare and special needs planning Flashcards
Learners will develop understanding in eldercare and special needs planning strategies to effectively address the financial needs and challenges of elderly and special needs individuals.
Julie, a financial planner, is assisting a new client, Mr. Thompson, who has recently retired at the age of 67. Mr. Thompson has not worked in a field that provided him with a retiree health plan and is concerned about his ability to afford any unexpected health issues. He has heard that there might be a government program available to help him with his healthcare costs. Julie knows that understanding government assistance programs is crucial in order to guide her client effectively.
Which government program should Julie suggest to Mr. Thompson to provide him with health coverage given his age?
A. Medicaid
B. Medicare
C. Social Security
D. Supplemental Security Income
B. Medicare
F.46 Eldercare and special needs planning
Samantha, a Certified Financial Planner, is working with the Johnson family to ensure the financial wellbeing of their son, Alex, who has a disability. The Johnson family wants to make sure Alex can access necessary financial resources without jeopardizing his eligibility for government assistance programs. Samantha is considering a variety of planning tools and strategies. Which of the following accurately describes an advantage of establishing a Special Needs Trust (SNT) for Alex?
A. It allows Alex to maintain eligibility for government benefits while accessing financial resources from the trust.
B. It mandates court approval for every distribution made from the trust to Alex.
C. It restricts the use of the trust assets to only pay for Alex’s medical expenses.
D. It grants Alex direct control over the assets placed in the trust.
A. It allows Alex to maintain eligibility for government benefits while accessing financial resources from the trust.
F.46 Eldercare and special needs planning
Samantha, a Certified Financial Planner, is developing an eldercare plan for her 80-year-old client, Mrs. Jensen, to address various aspects of her future needs and wishes. Mrs. Jensen has considerable wealth and wants to ensure she receives the best possible care in her later years while also safeguarding her assets for her beneficiaries. Which of the following objectives is NOT typically a standard goal when establishing an eldercare plan?
A. Minimizing taxes on Mrs. Jensen’s estate and income.
B. Maximizing available government benefits to assist with potential future care expenses.
C. Identifying an appropriate guardian for Mrs. Jensen in the event she becomes incapacitated.
D. Identifying a healthcare proxy to make medical decisions on Mrs. Jensen’s behalf should she become unable to do so.
C. Identifying an appropriate guardian for Mrs. Jensen in the event she becomes incapacitated.
F.46 Eldercare and special needs planning
Jennifer, a 68-year-old widow, has recently had to move into a long-term care facility due to her progressing Alzheimer’s disease. Her children are concerned about the costs associated with her care and are exploring financial assistance options. Jennifer has minimal income and assets. A friend mentioned Medicaid, but the children are unsure if Jennifer qualifies due to her age and are not familiar with the specifics of the program.
Which of the following statements is true about Medicaid?
A. It is exclusively a federal program.
B. It universally covers all medical expenses without exceptions.
C. It is only available to low-income individuals.
D. It is only available to individuals under the age of 65.
C. It is only available to low-income individuals.
F.46 Eldercare and special needs planning
Samantha, a Certified Financial Planner, is meeting with the Smiths, who are considering different options for funding Mrs. Smith’s 75-year-old mother’s (Margaret’s) eldercare plan. They express a preference towards relying on government benefits to fund all the potential expenses involved in Margaret’s care. Samantha recognizes that this approach has associated risks.
Which of the following is a potential risk of the Smiths relying solely on government benefits to fund Margaret’s eldercare plan?
A. The government may change the eligibility requirements.
B. The benefits may not be enough to cover all expenses.
C. The benefits may be subject to taxation.
D. All of the above.
D. All of the above
F.46 Eldercare and special needs planning
Your client, Mrs. Thompson, is a 75-year-old widow with a progressive health condition. She and her family are considering long-term care facilities where she can receive appropriate care as her needs increase. Her children, who are very involved in her life and care, live in close proximity to her current residence. Considering Mrs. Thompson’s situation and general best practices, which of the following factors is/are crucial to consider when selecting a long-term care facility?
A. The facility’s proximity to the family.
B. The facility’s cost.
C. The facility’s quality of care.
D. All of the above.
D. All of the above
F.46 Eldercare and special needs planning
Jenna, a Certified Financial Planner, is meeting with her client, Alex, to discuss estate planning strategies. Alex is contemplating setting up a revocable living trust to ensure that his assets are efficiently managed and distributed upon his passing without going through probate. However, Jenna wants to ensure Alex is aware of all aspects, including the potential disadvantages of establishing a revocable living trust. Which of the following should Jenna highlight as a potential disadvantage of a revocable living trust?
A. It does not provide asset protection.
B. It is not recognized in all states.
C. It requires court approval for distributions.
D. It does not allow for changes to be made.
A. It does not provide asset protection.
F.46 Eldercare and special needs planning
Jane, a Certified Financial Planner, is working with her client, Mr. Thompson, who wishes to ensure that his financial matters are taken care of should he become incapacitated in the future. He is considering assigning a durable power of attorney to his trusted friend, Peter, to manage his affairs. Jane recognizes that there are advantages to having a durable power of attorney, but she also wants to inform Mr. Thompson about potential downsides to consider. Which of the following is a potential disadvantage of a durable power of attorney that Jane should discuss with Mr. Thompson?
A. It may not be recognized in all states.
B. It may not cover all decision-making powers.
C. It may be subject to abuse.
D. All of the above.
D. All of the above
F.46 Eldercare and special needs planning
Martha, aged 75, has been in relatively good health but wants to plan for potential future eldercare needs, ensuring she has a well-structured financial plan that would alleviate any financial burden on her family. She has a life insurance policy and is considering utilizing it as part of her eldercare plan. Which of the following is a potential benefit of leveraging a life insurance policy for Martha’s eldercare plan?
A. It can provide a source of income for the beneficiary.
B. It can be used to pay for medical expenses.
C. It can be used to pay for long-term care.
D. All of the above.
D. All of the above
F.46 Eldercare and special needs planning
Mary, a special needs individual, has recently received a significant amount of money from a lawsuit settlement. In order to safeguard her financial future and to ensure that she maintains eligibility for means-tested government benefits, which of the following options is most suitable for managing her settlement money?
A. A special needs trust
B. A joint account with a family member
C. A revocable living trust
D. A traditional savings account
A. A special needs trust
F.46 Eldercare and special needs planning
John, an 82-year-old retiree, has recently been experiencing difficulties with mobility and completing daily activities independently. His children, concerned for his well-being, have suggested moving to a long-term care facility. However, John has a strong desire to remain in his home. As his financial planner, you are tasked with exploring various strategies to financially and practically facilitate John’s wish to stay in his home.
Which of the following strategies might be considered to make it financially viable for John to remain living in his home instead of moving to a long-term care facility?
A. Hiring a full-time caregiver
B. Implementing modifications to his home to enhance accessibility and safety
C. Exploring eligibility and applying for Medicaid to potentially assist with home healthcare costs
D. All of the above
D. All of the above
F.46 Eldercare and special needs planning
Which of the following is a potential disadvantage of a pooled special needs trust?
A. It may require court approval for distributions.
B. It may not be recognized in all states.
C. It may have high administrative fees.
D. It may not provide asset protection.
C. It may have high administrative fees.
F.46 Eldercare and special needs planning
Susan is an elderly individual who wishes to plan for her future care needs. Which of the following is a potential goal of her eldercare plan?
A. Maximizing government benefits
B. Minimizing taxes
C. Identifying a healthcare proxy
D. Transferring assets to her children
C. Identifying a healthcare proxy
F.46 Eldercare and special needs planning
Jack, a special needs individual, is currently a recipient of government benefits. Recently, his father passed away, leaving him a significant inheritance. If Jack receives this inheritance directly, which of the following is a potential consequence?
A. He may lose his government benefits.
B. He may be subject to high taxes.
C. He may not have access to the inheritance until he turns 18.
D. None of the above.
A. He may lose his government benefits.
F.46 Eldercare and special needs planning
