The OHearns: Estate Planning In The Presence Of Long-Term Care Considerations

Abstract

This case exposes students to issues surrounding estate planning when one or both spouses contemplate a need for costly long-term care. The role of Medicare and especially Medicaid in paying for such care is emphasized. The case addresses such issues as whether or not to purchase long-term care insurance and what factors to consider when transferring assets. In addition to addressing legal and technical issues, the case also addresses ethical issues (e.g., the ethics of impoverishing oneself through the transfer of assets in order to qualify for Medicaid). It may be used in any undergraduate or graduate level course that includes some emphasis on estate planning.