Jane called to ask whether she should consider buying long term care insurance. At her age, long term care insurance is expensive. Dementia runs in her family and she does not want her entire estate to be spent on nursing home care given that she has four children, all of whom could use her financial help now or after she dies.

I asked Jane to consider whether she could "self-insure." Could her estate pay out two or three years of nursing home costs at a current average cost in eastern Massachusetts of about $12,000 per month and still be able to leave a decent inheritance to her children? Would she feel worse having paid premiums over the years for insurance she did not use or paying out-of-pocket for care that could have been covered by insurance? As a single person, in the event of long term nursing home needs, her home could be at risk for a Medicaid lien. There are certain types of policies that meet state minimum coverage standards which would preclude the placing of a lien on her home.

Next, I suggested that if she determines she should buy long term care insurance the time to do so is now. The premium cost of this type of insurance increases with age. In addition, she may not be able to purchase it later if she contracts an illness or sustains an injury which would preclude her buying it.

Lastly, I explained that long term care insurance is one of the most complicated insurance products available, with policies offering a variety of benefit levels and conditions for payment. Some insurance companies have raised premium rates on existing policies while others have not. Some honor claims readily and others have put up difficult roadblocks. And there is a proliferation of hybrid policies that merge LTCI with life insurance. Jane needs someone who specializes in the field to guide her through all of these options.

LESSON: When considering the purchase of long term care insurance, you should always consult with an elder law attorney and a qualified long term care insurance professional. There are many different forms of policies and each state has different regulations regarding them.

If I divide my time equally between my winter and summer residences, can I declare a Homestead on both?

No. A homestead can be declared only on an applicant's "principal residence". A person can have more than one residence but the statute only allows the protection on one's primary dwelling. There is no legislative intent to allow the exemption to apply to a vacation home that is not principal residence. For example, a husband cannot declare a homestead exemption on one residence while his wife declares the exemption on another family residence, unless each can prove that the residence is their principal residence. If a homestead declaration is filed for a vacation home and it is not your principal residence or you do not intend to reside in it as your primary dwelling, no protections apply.