1. Planning for Chronic Illness 1 Planning for Chronic Illness Estate, tax, financial, insurance, legal and other practical planning considerations for those living with chronic illness, their caregivers and advisers Hosted By: CareOne, Teaneck ozak@care-one.com Presented By: Martin M. Shenkman, CPA, MBA, PFS, JD, Paramus, New Jersey. www.laweasy.com and www.shenkmanlaw.com.www.laweasy.com www.shenkmanlaw.com

2. Planning for Chronic Illness 2 Caution: Nothing in these slides or any accompanying presentation is to be considered legal or professional advise. The information is merely provided for educational purposes and no action should be taken without the individual consulting his or her own tax, estate, legal, financial, investment, insurance and other advisers.

3. Planning for Chronic Illness 3 Part 1: Introduction to Planning for Chronic Illness 120 Million Americans are living with chronic illness Chronic illness affects every aspect of planning Variability – Advisers Must Ask; Clients Must Tell Every legal document, plan, etc. has to be tailored to address chronic illness Standard documents and planning will often not protect the person living with chronic illness

4. Planning for Chronic Illness 4 Part 1: Insurance Planning for Chronic Illness Life Insurance Policies that include cash value in death benefits vs. that dont Accelerated Death Benefits Borrowing Against Cash Value Viatical Settlements Sale versus Cash Surrender Value (CSV)

5. Planning for Chronic Illness 5 Part 1: Insurance Planning for Chronic Illness Disability Insurance Residual versus Total Disability Proving Disability with an Invisible Chronic Illness Relationship with Other Arrangements: Business Overhead Insurance; Employment Agreement; etc.

6. Planning for Chronic Illness 6 Part 1: Insurance Planning for Chronic Illness Long Term Care Insurance Provisions to Consider Obtaining Coverage Combo Products with Simplified Underwriting

7. Planning for Chronic Illness 7 Part 2: Estate Planning for Chronic Illness Competency Considerations Beneficiary Designations Setting Up/Moving Accounts Title to Accounts (Ownership)

8. Planning for Chronic Illness 8 Part 2: Estate Planning for Chronic Illness Powers of Attorney: Combining a Limited and General Power Defining Disability Springing versus Immediate HIPAA language Compared to Living Trust

9. Planning for Chronic Illness 9 Part 2: Estate Planning for Chronic Illness Living Wills and Health Care Proxies: Addressing Specific Disease Conditions HIPAA language Organ or Tissue Donations Religious Issues Risky, Experimental and Other Treatments Naming Agents

10. Planning for Chronic Illness 10 Part 2: Estate Planning for Chronic Illness Revocable Trusts: Independent Social Worker Periodic Interview HIPAA language Institutional Trustee Home Improvements and Modifications Pay for Experimental Treatments Desired Accommodations and Living Arrangements

11. Planning for Chronic Illness 11 Part 3: Financial Planning for Chronic Illness Cash Flow and Budgeting: Distributions from 401(k) and IRA Accounts Home Equity Lines Borrowing from 401(k) Plans Other Cash Flow Sources Special Expenses to Budget (e.g., Home Accessibility) Other Expense and Budget Considerations

12. Planning for Chronic Illness 12 Part 3: Financial Planning for Chronic Illness Investments: Risk versus Reward – What is Appropriate for You Investment Strategies Liquidity Guaranteed Income Options Non-Insurance Programs with Beneficiary Protection

13. Planning for Chronic Illness 13 Part 3: Financial Planning for Chronic Illness IRAs (Individual Retirement Accounts): Access to IRA Assets Without Penalty Spousal Beneficiary IRA Unique Provisions Roth IRA Conversion Analysis

14. Planning for Chronic Illness 14 Part 3: Financial Planning for Chronic Illness Other Financial Considerations: Access to Safe Deposit Boxes Consolidation and Simplification Automatic Monthly Payments; On-Line Bill Pay Organizing Records and Documents Duplicate Monthly Statements

15. Planning for Chronic Illness 15 Part 4: Charitable Planning for Chronic Illness Charitable Planning and Chronic Illness Generally CGAs – Charitable Gift Annuities CRTs – Charitable Remainder Trusts Charitable Bailout of Closely Held Business CLT – Charitable Lead Trusts

16. Planning for Chronic Illness 16 Part 5: Income Tax Planning for Chronic Illness Modification of Your Home – Medical Tax Deduction Special Tax Treatment of 401(k) Plans Disability Insurance Proceeds Proceeds on Settlement of a Discrimination or Other Claim - Taxability Deductibility of Legal Fees to Obtain Settlement Basis Step Up Planning

17. Planning for Chronic Illness 17 Action Points : 1. 2. 3. 4. Additional Notes: