The CLASS Act Receives Grade “F”

On October 14th, the Obama administration informed Congress that after 19 months of effort there is no “viable path forward for CLASS implementation at this time.” The CLASS Act (Community Living Assistance Services and Supports) was originally intended to give Americans an affordable public alternative to private-sector long-term care plans. You can read my take on the Act when it was originally introduced and an extended explanation on my blog.

The nail in the coffin was an unfavorable sustainability analysis: lawmakers wanted evidence the program would be sustainable for a minimum of 75 years, and that could not be shown. Further, the Act was controversial, a “budget gimmick” since its inception according to many Republicans. While the Act may be dead in the water for the time being, the administration hinted at other initiatives, noting, “even as we suspend work on implementing CLASS, we are recommitting ourselves to the ultimate goal of making sure Americans can get the long-term care they need.”

With the death of the CLASS Act, much of the American public will revert back to erroneously believing that long-term care insurance is the only way to protect assets from the devastating financial burden of long-term care. The reality is that only 1 in 10 Americans has long-term care insurance, despite the fact that nearly 7 in 10 will need long-term care. That means that nearly 60% of Americans will find themselves in dire straits when bleeding money for long-term care for themselves or a family member.

The good news is that there are dozens of ways to protect assets, most of which are much better, much less expensive, and much less risky than long-term care insurance. A certified Elder Law Attorney or a licensed Living Trust Plus™ Attorney can help clients every day achieve what long-term care insurance is intended to achieve, but which often falls short of attaining.

Read the full CNN report at this link.

Contact a Living Trust Plus™ Attorney in your state now to find out how the Living Trust Plus™ program can help you protect your assets against the debilitating costs of long-term care.

Asset Protection Planning with the Farr Law Firm

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About Evan H Farr, CELA, CAP

Evan H. Farr is a 4-time Best-Selling author in the field of Elder Law and Estate Planning. In addition to being one of approximately 500 Certified Elder Law Attorneys in the Country, Evan is one of approximately 100 members of the Council of Advanced Practitioners of the National Academy of Elder Law Attorneys and is a Charter Member of the Academy of Special Needs Planners.