{"id":795,"date":"2018-04-06T17:39:45","date_gmt":"2018-04-06T17:39:45","guid":{"rendered":"http:\/\/www.himmelsteinfinancial.com\/?p=795"},"modified":"2018-04-11T19:38:34","modified_gmt":"2018-04-11T19:38:34","slug":"tax-leveraged-long-term-care-plan","status":"publish","type":"post","link":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/tax-leveraged-long-term-care-plan\/","title":{"rendered":"Tax Leveraged Long-term Care Plan"},"content":{"rendered":"<p><a href=\"http:\/\/www.himmelsteinfinancial.com\/index.php\/tax-leveraged-long-term-care-plan\/ltc-image\/\" rel=\"attachment wp-att-801\"><img data-attachment-id=\"801\" data-permalink=\"https:\/\/staging.himmelsteinfinancial.com\/index.php\/tax-leveraged-long-term-care-plan\/ltc-image\/\" data-orig-file=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/LTC-image.jpg?fit=358%2C141&amp;ssl=1\" data-orig-size=\"358,141\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"LTC image\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/LTC-image.jpg?fit=300%2C118&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/LTC-image.jpg?fit=358%2C141&amp;ssl=1\" loading=\"lazy\" class=\"size-medium wp-image-801 alignleft\" src=\"https:\/\/i0.wp.com\/www.himmelsteinfinancial.com\/wp-content\/uploads\/LTC-image-300x118.jpg?resize=300%2C118\" alt=\"\" width=\"300\" height=\"118\" srcset=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/LTC-image.jpg?resize=300%2C118&amp;ssl=1 300w, https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/LTC-image.jpg?w=358&amp;ssl=1 358w\" sizes=\"(max-width: 300px) 100vw, 300px\" data-recalc-dims=\"1\" \/><\/a>There is an opportunity for your company to pay for a Long-Term Care policy which may be leveraged between different tax brackets, either between your company and yourself and\/or your company and a key employee.\u00a0 The Himmelstein Financial, in cooperation with Lincoln Financial, designed a solution for business members which allows for a transfer of capital from their corporation with limited tax implications, thus, providing substantial benefits that are very lightly taxed to either the business owner, as a participant, or a key employee.<\/p>\n<p>This program can be used for sole proprietorships, individual partners and \/ or key employees.\u00a0 The Employer must determine on a couple of variables.\u00a0 The most important is who they wish to cover and how much they will budget for this purpose?<\/p>\n<p>Additional appropriate questions<\/p>\n<ul>\n<li>Is it more important for the business to get their money back or to have whatever it spends as premium as a write-off?<\/li>\n<li>Does the business want any type of vesting schedule or does the employee have to be completely vested to receive the benefit (golden handcuffs)?<\/li>\n<li>Is the business or participant most interested in LTC, Death Benefit, or potential retirement?<\/li>\n<li>Are there any real health challenges in the proposed participants that they are aware of?<\/li>\n<li>Does the business have any specific agreements or contracts it wants to fulfill with these contracts? (Buy Sell Succession, Key Man, Deferred compensation, Estate Liquidity for owners)<\/li>\n<\/ul>\n<p>What will the Business Accomplish by establishing a plan?<\/p>\n<ul>\n<li>Protection from one of the largest wealth destruction events, needing care.<\/li>\n<li>Differentiation from other businesses that have not made any plans. This makes it more attractive to employees as well.<\/li>\n<li>Potential Golden Handcuffs<\/li>\n<li>Turning lesser taxed business dollars to lightly or tax-free dollars to the participants in the form of benefits at their higher tax bracket personally<\/li>\n<li>Potential no out of pocket costs to the business<\/li>\n<li>Opportunity to leverage the corporate dollar to get a substantial write-off<\/li>\n<li>A deferred compensation<\/li>\n<li>A method of insuring that agreements and obligations will be met.<\/li>\n<\/ul>\n<h2><span style=\"color: #ff0000;\">Look at how this works?<\/span><\/h2>\n<p><img data-attachment-id=\"809\" data-permalink=\"https:\/\/staging.himmelsteinfinancial.com\/index.php\/tax-leveraged-long-term-care-plan\/tax-leveraged-ltc-split-dollar-plan\/\" data-orig-file=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/Tax-Leveraged-LTC-SPlit-Dollar-Plan.jpg?fit=6600%2C5101&amp;ssl=1\" data-orig-size=\"6600,5101\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Tax Leveraged LTC SPlit Dollar Plan\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/Tax-Leveraged-LTC-SPlit-Dollar-Plan.jpg?fit=300%2C232&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/Tax-Leveraged-LTC-SPlit-Dollar-Plan.jpg?fit=1024%2C791&amp;ssl=1\" loading=\"lazy\" class=\"wp-image-809 aligncenter\" src=\"https:\/\/i0.wp.com\/www.himmelsteinfinancial.com\/wp-content\/uploads\/Tax-Leveraged-LTC-SPlit-Dollar-Plan-300x232.jpg?resize=779%2C603\" alt=\"\" width=\"779\" height=\"603\" srcset=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/Tax-Leveraged-LTC-SPlit-Dollar-Plan.jpg?resize=300%2C232&amp;ssl=1 300w, https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/Tax-Leveraged-LTC-SPlit-Dollar-Plan.jpg?resize=1024%2C791&amp;ssl=1 1024w, https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/Tax-Leveraged-LTC-SPlit-Dollar-Plan.jpg?w=2280&amp;ssl=1 2280w, https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/Tax-Leveraged-LTC-SPlit-Dollar-Plan.jpg?w=3420&amp;ssl=1 3420w\" sizes=\"(max-width: 779px) 100vw, 779px\" data-recalc-dims=\"1\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>Once the employer has decided on which employees\u00a0and how much out of their budget they shall spend on the employee, we establish an equity agreement between the company and the participant (even if that participant as the owner).\u00a0 The Individual would apply for a specific type of policy for LTC that would be individually owned but collaterally assigned back to the company.\u00a0 Each year the employee will pay a small tax (which is based on the economic benefit of the contract which is really very low and\u00a0stays low due to the minimal amount of incidental life insurance net to employee).<\/p>\n<p>Any premiums paid into the contract are considered an asset of the corporation and at some point, the corporation will get paid back.\u00a0 If one has a Long-Term Care claim the company gets back their money and pays out to the employee, the benefit.\u00a0 Of course, it can deduct when the company writes off the payouts to the employee.\u00a0 If the employee unfortunately leaves the earth early the corporation gets back the death benefit tax free which is equal, or more than the company paid in.\u00a0 If the employee leaves, the company gets their money back or keeps the contract whichever is more beneficial to them.\u00a0 They could decide to sell or forgive the lien back to the former employee in this situation but there is no obligation.<\/p>\n<p>A Chart Enclosed shows the Transactions and a sample printout summarizing the illustrated proposal for a 53-year-old male.\u00a0 To see the full illustration click or paste the following link:<\/p>\n<p><a href=\"http:\/\/www.himmelsteinfinancial.com\/wp-content\/uploads\/Mguard-split-dollar.pdf\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Click to access Mguard-split-dollar.pdf<\/a><\/p>\n<p><a href=\"http:\/\/www.himmelsteinfinancial.com\/index.php\/tax-leveraged-log-term-care-plan\/chart-lfg-moneyguard-ill\/\" rel=\"attachment wp-att-796\"><img data-attachment-id=\"796\" data-permalink=\"https:\/\/staging.himmelsteinfinancial.com\/index.php\/tax-leveraged-long-term-care-plan\/chart-lfg-moneyguard-ill\/\" data-orig-file=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/chart-lfg-moneyguard-ill.png?fit=671%2C246&amp;ssl=1\" data-orig-size=\"671,246\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"chart lfg moneyguard ill\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/chart-lfg-moneyguard-ill.png?fit=300%2C110&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/chart-lfg-moneyguard-ill.png?fit=671%2C246&amp;ssl=1\" loading=\"lazy\" class=\" wp-image-796 alignleft\" src=\"https:\/\/i0.wp.com\/www.himmelsteinfinancial.com\/wp-content\/uploads\/chart-lfg-moneyguard-ill-300x110.png?resize=787%2C288\" alt=\"\" width=\"787\" height=\"288\" srcset=\"https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/chart-lfg-moneyguard-ill.png?resize=300%2C110&amp;ssl=1 300w, https:\/\/i0.wp.com\/staging.himmelsteinfinancial.com\/wp-content\/uploads\/chart-lfg-moneyguard-ill.png?w=671&amp;ssl=1 671w\" sizes=\"(max-width: 787px) 100vw, 787px\" data-recalc-dims=\"1\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is an opportunity for your company to pay for a Long-Term Care policy which may be leveraged between different tax brackets, either between your company and yourself and\/or your company and a key employee.\u00a0 The Himmelstein Financial, in cooperation with Lincoln Financial, designed a solution for business members which allows for a transfer of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pdUwpZ-cP","jetpack-related-posts":[{"id":829,"url":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/tax-leveraged-life-insurance\/","url_meta":{"origin":795,"position":0},"title":"Tax Leveraged Reduced Cost Life Insurance","date":"05\/08\/2018","format":false,"excerpt":"There is an opportunity for your company to pay for Reduced Cost Life Insurance which may be leveraged between 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Many owners and their key people may be personally taxed as much as 37% federally.\u00a0 Even this new rate can be a misnomer because\u2026","rel":"","context":"Similar post","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gallery.mailchimp.com\/98ad10abd4ba836a05eaa66a0\/images\/c48dc069-7894-485b-978a-1452acb7403c.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":786,"url":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/professional-tax-relief-act-of-2018-reap-the-rewards\/","url_meta":{"origin":795,"position":3},"title":"Professional Tax Relief Act of 2018 Reap the Rewards","date":"03\/27\/2018","format":false,"excerpt":"These are exciting times because for the first time in years there are tax breaks that a professional can get that they didn\u2019t have available before.\u00a0 The unintended consequences of the recent tax act gave opportunity to the professional person that fits in the category if they wanted to be\u2026","rel":"","context":"Similar post","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":622,"url":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/the-deductible-insurance-policy\/","url_meta":{"origin":795,"position":4},"title":"The Deductible Insurance Policy","date":"02\/16\/2017","format":false,"excerpt":"Many an advisor or agent has asked me about tax deductibility of premiums when in fact that could change some of the best attributes of the 4 way tax shelter or the Super Roth for the higher compensated person.\u00a0 That is right other than the insurance costs which over\u00a0a long\u2026","rel":"","context":"Similar post","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":904,"url":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/mulitple-policies-better\/","url_meta":{"origin":795,"position":5},"title":"Multiple Policies Are Better!","date":"01\/10\/2019","format":false,"excerpt":"MULTIPLE POLICIES ARE\u00a0BETTER! We get requests from representatives and clients often with multiple goals that conflict with each other. You as the adviser realize it\u2019s a lot to ask for one contract to provide a Guaranteed Life Insurance Benefit, Chronic care, an income Stream, Multiple difficult beneficiaries or trusts, etc.\u2026","rel":"","context":"With 1 comment","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.himmelsteinfinancial.com\/wp-content\/uploads\/Edited-Table-Illustration.png?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/wp-json\/wp\/v2\/posts\/795"}],"collection":[{"href":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/wp-json\/wp\/v2\/comments?post=795"}],"version-history":[{"count":13,"href":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/wp-json\/wp\/v2\/posts\/795\/revisions"}],"predecessor-version":[{"id":814,"href":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/wp-json\/wp\/v2\/posts\/795\/revisions\/814"}],"wp:attachment":[{"href":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/wp-json\/wp\/v2\/media?parent=795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/wp-json\/wp\/v2\/categories?post=795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/wp-json\/wp\/v2\/tags?post=795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}