Archives for August 2023

Long Term Care Insurance as an Estate Planning Tool

Long term care insurance is one of the many estate planning tools that may be considered as you prepare for the future. Although it typically isn’t the best tool for most people, it is an option you can consider and discuss with your estate planning attorney. At the Law Offices of David Knecht, we customize your estate plan to your needs, and we are happy to discuss the pros and cons of many estate planning tools. This article will provide an overview of what long term care insurance is, how it is used, and cost factors with information summarized from an article published by smartassets.com.  

What is long-term care insurance?

  • Long-term care insurance helps cover the costs of long-term care services, such as an assisted living facility, adult daycare or a nursing home when you can no longer perform independently, the basic activities of daily living. 

Why would someone consider long-term care insurance?

  • Of that group, 20% will need it for more than 5 years. 
  • Often health insurance does not cover these costs and Medicaid and Medicare have limitations that can impact your savings and assets.

 What are the pro’s of long-term care insurance?

  • Asset preservation – An insurance policy may protect your savings, but keep in mind that the policy typically does not cover everything.
  • More care options – the goal here is to enable you to pay for the type of services that you need when that time comes. 
  • Family concerns – you may want to prepare to avoid putting a burden on your family to care for you in the future.

How much does long-term care insurance cost?

  • An example illustrates the high cost: 55 year old man in the U.S. can expect to pay a premium of $2,220 per year according to a 2022 price index survey conducted by the American Association for Long-Term Care Insurance.
  • In the example, the coverage would be $165,000 in benefits when the policyholder takes out the insurance and $400,500 at age 85.
  • Long-term care insurance costs vary widely depending on factors such as health condition and age. 

How should I plan for long-term care?

  • Planning for your long-term care needs in not simple. The best plan will consider your specific assets, health, circumstances and family needs. 

Contact an Experienced Estate Planning Firm

If you have questions about any estate planning issue, we are here to help. At the Law Office of David Knecht, we have extensive experience with estate planning and look forward to exploring all your options for estate planning with you to create the best plan for you and your loved ones.  Contact us at 707-451-4502. 



Filed Under: General

California Divorce: Lessons from Hollywood

A recent Hollywood divorce, Kevin Costner’s divorce from Christine Baumgartner, is an interesting case study of issues that can arise in a California divorce. This article will provide divorce takeaways, supported by a summary some of the interesting facets of this high-profile divorce with facts sourced from news reported by usmagazine.com. 

If you were blindsided by a divorce, you are in good company with Kevin Costner.

  • Costner and Baumgartner were married for over 19 years when she filed for divorce. 
  • A few months prior to the divorce filing, Costner posted his regrets for having to miss the 2023 Golden Globes and stated that his wife had a beautiful dress and he was looking forward to walking down the read carpet with her.  
  • An anonymous source cited by US said that Costner was “deeply saddened” and was “blindsided by the split.”

A prenuptial agreement may not keep you out of court. 

  • Costner and Baumgartner reportedly had a prenuptial agreement, but this did not prent a court battle over where Baumgartner would live and personal possessions. 
  • Costner alleged in June 2023 court documents that in spite of a prenuptial agreement requiring her to move out within 30 days of filing for divorce, Baumgartner was refusing to move out of the marital home. 
  • The court subsequently ordered Baumgartner to vacate the marital home. 

It is not uncommon for a spouse to withdraw assets just prior to a divorce. 

  • Usmagazine.com cited court documents where Costner claimed that his estranged wife withdrew from his bank account and charged to his credit card a total of $95,000 for her divorce attorneys and accountant. 

One spouse may be more impacted financially by divorce than the other. 

  • Baumgartner claimed in June 2023 court documents cited by Us that she has no personal income and argued that she should not be ordered to leave the family home because she does not have enough money to ensure the children can maintain similar standards of living in the parties’ respective homes. 

One or both parties may be petty during the divorce process. 

  • According to Usmagazine.com, Baumgartner filed court docs in July 2023 claiming that Costner was worries she was going to take too many pots and pans when she moved out. 
  • The magazine also reported that Baumgartner alleged that Costner was kicking his children out of the home and was not willing to commit to paying an appropriate amount of child support.
  • As per Usmagazine.com, Costner reportedly denied he was kicking is children out of their home and claimed to be requesting the Christine vacate the separate property home and find alternative living arrangements.   

Contact an Experienced California Divorce Attorney

If some of these challenging circumstances from Hollywood divorce feel familiar to you as you contemplate or continue the divorce process, you are not alone. If Kevin Costner and Christine Baumgartner are emotionally and financially challenged by the divorce process, then it isn’t surprising that most other people have struggles with divorce. At the Law Office of David Knecht, we are here to help you! We understand the emotional and financial challenges that you will face, and we will use our extensive experience with family law to help support you and walk you through the legal challenges. Contact us today at 707-451-4502. 



Filed Under: Divorce Advice