Mary worked hard all her life, she has a car, and the home she and her late husband
lived in. Living frugally on her late husband's pension, she was even able to save a
little money ($12,000) so her family would not have to worry about funeral expenses,
(and maybe a little left over she planned to give to her grandchildren).
Unfortunately Mary has recently been diagnosed with a serious condition and will
need expensive long term care. Forced into taking Government Medicaid to pay for
this care, she is shocked to learn that due to something called "Medicaid Spend-Down" they are going to take all her savings.
She is devastated that despite the sacrifices she made,
the Government is forcing her to be a burden on her children again.
But then her agent tells her about American Legacy Assurance. That same day she completes her ALA policy
application, and an immediate assignment form to the Irrevocable Funeral Trust. Instantly her $12,000 savings is protected and secured from the prying
hands of the government (and other creditors). Plus she can put the rest of her affairs in order with the Revocable Living Trust, and get down
to the business of deciding which of her grandchildren she will bequest pieces from her collection of Hummel figurines.
James, a successful engineer & Donna, a realtor are empty nesters. They are in good health and are looking forward to becoming grandparents soon. They have saved
and have a nice retirement nest egg and decent life insurance. But they are worried. Donna's best friend Susan was in a terrible
car accident with her husband driving home from an office party a few months ago.
Susan survived with serious injuries but unfortunately her husband did not survive. Now Susan has a difficult recovery with expensive medical bills, and multiple lawsuits.
Because they had a couple drinks at the party, the passengers in the other vehicle are suing saying it was her fault. Not only are they going after their life savings,
but they are even trying to force her to surrender her life insurance, and the proceeds from her late husband's policy. Even worse, Susan's husband had a number of
assets from before they were married that he never bothered to re-title. Since he only had a simple Will, money her family could use is now tied up Probate court too.
This has really frightened James & Donna, not only has their friend's life been turned upside down overnight, but they learned their life savings,
and even their life insurance could be targeted by lawyers. They reach out to their insurance agent to see what they can do to protect themselves.
James & Donna decided to go with American Legacy Assurance program because it is an insurance policy with a "financial lockbox" (irrevocable trust) and a revocable living trust included.
They decide to use a 1035 exchange with their old insurance policy to help fund the maximum $100,000 per person making sure that a positive financial legacy is left
for their family. And while they are healthy now, and not worried
about needing Medicaid benefits, they know that after 5 years the full $100,000 is protected from the dreaded "spend-down" provision. They also take comfort
that with the Revocable Living Trust, and future grandchildren can be easily added as beneficiaries without compromising the integrity of their lockbox.
Evelyn's second husband was the classic "absent minded professor". Always tinkering in his workshop, she fondly remember having to bring him lunch or he would forget to eat.
He passed on a few years ago, and while she does not think of herself as "rich", her husband's many patents and book royalties allows her to live comfortably for the rest of her days.
Their only child became a successful doctor, and gave her two grandchildren she loves dearly. Unfortunately her daughter's ex-husband was, in Evelyn's words, "a worthless, drunken, abusive deadbeat".
Growing up in a broken home has been difficult for her grandchilden, John and Rose. John dropped out of school, has never really kept a job and has a gambling problem.
Rose is still in school, but struggling with grades and substance abuse. Evelyn wants to leave a legacy for her grandchildren, but she is worried that they may be too young and irresponsible to handle a sudden influx money, or worse their
"deadbeat dad" might con them into "loaning" him money.
Fortunately ALA is not your ordinary life insurance policy, the Revocable Living Trust has spendthrift provisions to protect beneficiaries from creditors
that might try to claim a share of their inheritance.
Evelyn also chooses to add the optional Joint Trust for Children. Evelyn selects her daughter as Trustee to keep and manage the grandchildren's inheritance in trust until they are
both drug free and 35 years old (she could have chosen any age). Before age 35, Evelyn's daughter can use the inheritance to help paying for school (if they keep their grades up), pay medical bills, even a first home & wedding.
Evelyn has the peace of mind that she is leaving a legacy that is not only protected from societies vultures, but also will help protect and guide her grandchildren to a more productive future after she is gone.
*Note: Case studies are for illustrative purposes only. No identification with actual persons (living or deceased) is intended or should be inferred.