Paying for Long-Term Care (00090358)

The focus of this course is on paying for long-term care. Long-term care is personal care required by someone who is chronically ill or infirm and is incapable of self-care. According to America’s Health Insurance Plans (AHIP), about 19 percent of Americans aged 65 and older experience some degree of chronic physical impairment. Among those aged 85 or older, the proportion of people who are impaired and require long-term care is about 55 percent. In the year 2020, some 12 million older Americans are expected to need long-term care. Upon completing this course, the student will be able to: Explain who qualifies as a chronically ill person  List the ways to pay for long-term care  Determine the deductible portion of long-term care insurance

Final Exam > Results Page

final exam score:

final exam status:

80%

Question 1

Correct

In 2013, the threshold for deducting medical expenses becomes:

8 percent

(You Answered) (Correct Answer) 10 percent for those under 65

10 percent for all taxpayers

7.5%

Question 2

Correct

Which of the following expenses can be deducted as a medical expense for a chronically ill individual?

In-home care

The costs of an assisted living facility

Nursing home care

(You Answered) (Correct Answer) All of the above

Question 3

Correct

For purposes of accelerated death benefits, a terminally ill person is defined as someone who:

Needs assistance with ADLs

Cannot be left unattended

(You Answered) (Correct Answer) Has a condition expected to result in death with two years

Requiring substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment

Question 4

Incorrect

A sale of an insurance policy can be made on a tax-advantaged basis by a:

(You Answered) Terminally ill person only

Chronically ill person only

(Correct Answer) Either of the above choices

Chronically ill individual to the same extent as accelerated death benefits

Question 5

Correct

What is the maximum amount of premiums that someone age 65 can treat as a deductible medical expense in 2011?

$1,270

(You Answered) (Correct Answer) $3,390

$4,240

$640

Question 6

Correct

A life insurance policy can be used for long-term care by:

Taking accelerated death benefits

Putting a long-term care rider on the policy

(You Answered) (Correct Answer) Either of the above choices

Community Living Assistance Services and Support (CLASS) program

Question 7

Correct

What is not known about the CLASS program?

The minimum benefits

The minimum period for which premiums must be paid

(You Answered) (Correct Answer) The starting date of the program

The premiums are tax-deductible by individuals who itemize deductions

Question 8

Incorrect

If a principal residence is transferred to an irrevocable trust within five years of applying for Medicaid, it means:

(Correct Answer) The home sale exclusion is lost.

(You Answered) The transferor is no longer prevented from qualifying for Medicaid.

The homeowner’s property tax breaks can continue to be claimed by the trust.

If a homeowner must stay in a nursing home, that period counts for purposes of the two-year principal residence requirement.

Question 9

Correct

The Tax Court will _______ allow an estate tax to deduct an amount in an oral contract to provide long-term care services for a relative.

Always

(You Answered) (Correct Answer) Sometimes

Never

Likely

Question 10

Correct

Which of the following documents are important for long-term care planning?

A durable power of attorney

A living will

A health care proxy

(You Answered) (Correct Answer) All of the above