Expert Interview Transcript: Long-Term Care Insurance
Interviewed on May 10, 2019
Expert Interview Transcript: Long-Term Care Insurance
Interviewed on May 10, 2019
Interviewer: Greetings friends and welcome to the Word on Wealth Financial Network. Marty Schneider here, live and local, as always, glad to have you along on this Friday afternoon edition of the Word on Wealth. A special treat this afternoon, I have invited an associate friend of mine by the name of Trey Fairman to join us. Trey is an attorney and partners with many of America's top investment firms and private banks and advisors, and has a bachelor of science in finance from the University of Delaware, along with a law degree and a master of law in taxation from the University of San Diego Law School right here in town. So a pleasure to introduce you all to Trey Fairman, our guest today. Trey, how are you doing on this Friday?
Trey Fairman: I'm doing great, Marty. Thank you very much for having me. I'm glad to be here.
Interviewer: I'm delighted to have you here, because I get to have you be the answer guy on what I think, Trey, is one of the more difficult and challenging conversations that I have with clients here in my office when we talk about retirement and retirement planning. I'm speaking specifically about the whole issue of long-term care. I know that's near and dear to your heart. Let me just start, for listeners that may not be familiar with what we're talking about, give us a working definition here. What exactly are we talking about when we say long-term care?
Trey Fairman: I think this is a good place to start, because I've definitely learned over many years clients ask that question right out of the gate. So really think about long-term care is not just for the elderly, so wipe that out of your brain. And really what long-term care refers to is the services provided to people who are having trouble managing what are called the activities of daily living due to either illness, injury, disability, or cognitive disorder. People really of all ages need this. It's not just older people. Young people fall maybe skateboarding or a surfing accident. Again, really what the triggers are, it's not a life-threatening situation, but you're unable to do, again, what's called activities of daily living. Things like dressing yourself, bathing yourself, getting out of bed, so those activities.
Interviewer: So the inability to do a number of those things could trigger this benefit to kick in. Now, through the years, Trey, as I've addressed this issue, years ago when it started to become more popular in the conversation and we began to get statistics and information about the cost of long-term care, et cetera, a lot of insurance companies got into that business and thinking, "Well, we have this massive group of baby boomers that are all hitting that age and they might be interested in this." For a while it was a booming business, but I know it's been a struggle for the insurance companies. Talk to us a little bit about that. What's gone on with the insurance companies that offer these products? And what about the pricing and the premiums?
Trey Fairman: That's definitely been a challenge. At its root level, I think the easiest way to understand it is, life insurance companies, which are the carriers that are offering long-term care insurance, they have been developing their pricing models off actuarial tables and experience for hundreds of years. When they started to get into long-term care, they dramatically underestimated, I would say, two things. One, the progress of medicine; we're all living longer than we were just a few short years ago, which is great. And the other thing they underestimated was the future interest rate environment.What happened in a nutshell is really three things. Insurance companies use their experience selling life insurance, made some assumptions and really got it wrong in two areas. And then the market helped with the third. So let's start with the market first. The market, as carriers are out trying to one up each other, prices for long-term care insurance got driven below where they should have been based on experience and what the smart math actuaries actually said. So that was problem one, it was priced lower than it should have been. We've seen that with term life insurance as well, but the models with life insurance are much, much stronger. So that's the first problem.Second problem, people that bought these insurance policies held onto them, and as they age they started to collect on them. So now you had insurance companies that had policies on the books that the life insurance models didn't apply to the long-term care models, so that was then a challenge. And then I think what the biggest challenge was, which a lot of people don't hear about but makes complete sense when you hear it, is insurance companies are just like you and I and everyone on the radio here, they need to invest their money somewhere. They typically invest in very long portfolios of bonds and mortgages.As those interest rates dropped over time, you now had really the final blow, if you will, where you had a situation where the prices were set up with maybe a little more guesswork than what it should have been. They were driven below where they should have been due to the competitive nature. People were living longer and collecting on them. And then finally, interest rates didn't go favorably. So you now were stuck where you had an environment where insurance companies... It's not easy for insurance companies to raise rates. In fact, for them to raise rates on long-term care policies, they have to petition the state, they have to get approval and they have to raise it for the entire block of business. But much like we saw in 2008 and some other times, there really wasn't, I'm not going to say a choice, but at the end of the day it really only had one way to go, which is carriers unfortunately exited the business, sold their blocks of business to other carriers. For those carriers to absorb those policies, they had to raise rates.That's been a unfortunate thing for sure. I think that's changed to a certain extent, which we'll probably jump into in just a few minutes. But that's, again, really what it was; interest rate environment, some bad assumptions out of the gate, and I think people living longer. Which is great news, right? Living longer is great, but low interest rates, as we all know, that's not the greatest thing for sure.
Interviewer: No, and it reminds me, Trey, of some of the challenges that many of the pension plans have bumped into. They assume certain interest rates of return on pension assets they were managing. As you know, many of these pension plans are deep in the red because the assumptions weren't met. So that's somewhat similar, is it not?
Trey Fairman: It's almost very, very similar. You have pension actuaries. You have a little different breed of person who's an insurance actuary, but it's the same math formulas. Absolutely.
Interviewer: When we're talking now about long-term care, I have through the years numbers of clients that have purchased long-term care policies. Again, you described some of the challenges that these insurance carriers have had with this particular line of business, but what a lot of clients just experienced was that premiums were just going up and up and up year by year, they were getting rate increases. Is that still a problem with long-term care, Trey? Is that still going on where the carriers keep jacking the prices up every year to meet the claims that they're suffering?
Trey Fairman: It is for what we would call traditional long-term care. That's an older type of policy that is an annual premium. Yes, that is still a challenge. In fact, I've been on the phone over the past few weeks with clients. Genworth just announced they were raising their rates somewhere in the area from 40% to 55%.
Trey Fairman: This isn't meant to hide the fact, but when the rates go up, the clients have a choice. They don't necessarily have to pay the rate increase. They can continue to pay the same premium, but their benefits go down proportionally.
Interviewer: Right. Right.
Trey Fairman: But that problem hasn't gone away. One of the things that we've been trying to do proactively, much like with a lot of insurance, and already you and your listeners probably have seen this, we, for whatever reason, and I've been working in this industry for 26 years working with financial advisors, bankers, and no matter who it is people just seem to assume that when they have a insurance policy they just put it in their desk and they never really look at it. That's not necessarily their fault. I don't think the education's been there. As we've talked about, those policies react in a interest rate environment that need to be watched. If you have a traditional long-term care policy, what I tell clients is, "It's not a question of if your premium's going up, it is going up. Really, it's just when." I would say that would be the next three to five years. Clients that are exploring-
Interviewer: You know what- Trey, let me interrupt here. I'd like to ask you, if you don't mind, can you hang on here through our first break and we'll take another segment together?
Trey Fairman: Sure. Absolutely.
Interviewer: Okay. That's great. All right. I'm going to ask Trey to hang on because I have a lot more questions. We do have the phone lines open if you do have a long-term care question for Trey Fairman. We're glad to have Trey with us here as a special guest. By the way, if you'd like to connect with Trey off the air you can reach him by calling 619-993-0013. Again, 619-993-0013 to reach Trey Fairman off the air. When we get back from the break, we'll have another segment here with Trey.Also, I know that Trey has put together a free report that is available. When we get back from break, Trey, I'll have you educate our listeners on that and let them know how they can get a copy of that free report. Again, we're going to take our first pause here on this Friday afternoon edition to the Word on Wealth. Marty Schneider here, the retirement professor. We have special guest, Trey Fairman, with us. We're talking long-term care. Lots more ahead. Glad you're with us, friends. This is the Word on Wealth Financial Network, and I'm the retirement professor. Short break. We'll be right back.We're back, friends. We have a special guest with us on this Friday afternoon, Trey Fairman, joining us. Trey has been in the industry for many, many years, an attorney and works with a lot of financial advisors and companies and banks, investment firms. Today, we're having a discussion of one of the more challenging conversation points in retirement and financial planning, and that is long-term care. Just before the break, Trey, I had mentioned that I know that you have written a free report on this topic. How can our listeners get ahold of that?
Trey Fairman: Pretty easy. You just need to send a text. The number to send the text to is 345345. And in the message line you just need to type LTC, as in long-term care. So again, just send LTC, that's the message in a text, and the number is 345345. And what that'll do then is, that'll ask you for your email, and then I'll be able to email you a short little ebook that I have put together that's about 11 or 12 pages. And really what it is, it's a summary of really all the issues that I think are important that I really couldn't find a general resource just talking about from a 30,000 foot level what's going on. So that's what I've tried to put together there for everybody.
Interviewer: Excellent. Okay. Well, we hope our listeners will take advantage of that. I think that they'd find it helpful. I just want to continue our conversation. We were talking about long-term care and the more traditional approach where people could purchase a long-term care insurance policy. Of course, through the years they've continued to get more and more expensive, seemingly. One of the comments that I get, Trey, when we have this discussion in my office is, "Well, I'm not all that worried about long-term care. I'm married, my spouse will take care of me. I've got family. I've got kids. I'm not going to bother with this." After so many years of experience in the business, how would you respond to that?
Trey Fairman: I would say, from a macro level, I think the answer is, well, let's talk about that. If we're going to make that decision consciously, I have no problem with that at all. The challenge that I often run across is people just don't want to talk about it, like you said, and they haven't really made that decision intelligently. Some of the things I point out is, I say, "Look, statistically speaking, odds are 70% of us age 65 and older are going to need some sort of long-term care." And then we say, "All right, what's the average claim last?" It's about a three year duration. 87% of all those claims lasts three years or less. So let's just say three years.Let's assume that that happens. I think the biggest problem with the someone will take care of me is people don't consider the impact that has on their family. Meaning, that the caregiver that now has to put their life on hold, if it's a daughter or a spouse or a son, and not that they're unwilling to do it, they're usually very, very willing to do it. And they're actually so willing to do it, they become so self-absorbed that it then starts to impact their health and their quality of life.Again, not that insurance is a solution, not that elder law planning is the only solution. There's a lot of different ways to think about it. And frankly, Marty, you maybe have some clients too that have investment portfolios that will kick off income whether they need long-term care services or not. Maybe they don't need any long-term care planning, and that's great, too. But I think to just say, "You know what? I'm going to self-insure that. I'm going to let someone else take care of me," without really understanding, I think, what the real impact of that is and when I think clients understand that, no one really wants to do that to their family or their loved ones.That's how I talk about that. That's not meant to really scare anyone or frighten anyone, but I think the reality of the situation is this is an issue and it's got to be something that we address. And just the more people I think talk about it and think about it, then I think the better it is, and we all make a good plan. Let's say, that's really what the goal is, let's just make a plan.
Interviewer: Absolutely. Have a plan, have an approach. Now, Trey, one of the observations through the years that I've had in watching families that have had to deal with difficult situations where a spouse needed some kind of special attention, special care, could not bathe themselves, dress themselves, feed themselves, use the restroom independently, all of those kinds of activities; that really can put tremendous stress on family if there's a family caregiver.But the other observation is, it's the kind of thing where I think over time, these conditions, they tend to get more dramatic, more difficult. People tend at some point not to get better. In fact, particularly if we're talking about memory issues, Alzheimer's issues and those kinds of things, it can actually turning a really gentle, kind softhearted person into somebody very, very different that's very difficult to deal with. All of a sudden they're dealing with a situation that may be beyond their skillset.The question that I have for you, and I know this varies from person to person, but on average if somebody needs that kind of skilled detention, long-term care, can't do those activities of daily living independently, at that point in time I'm guessing their life expectancy is not necessarily going to be another 15 years. It might be shortened to some degree. What is the average stay? Are you aware of the number in a long-term care facility?
Trey Fairman: It's not 15 years. I probably should have that number right off the top of my head, but it's definitely less than three.
Trey Fairman: Okay. When they go into a facility, I think the number is about 1.9, let's call it two years.
Trey Fairman: That's what their life expectancy is. Now, important point there. Remember, statistics look in the past the increase of cognitive disorders and Alzheimer's, that life expectancy is getting longer. So that wipe out scenario that we've been talking about, the average claim's three years, well, that's an older stat. The average claim now is actually a little longer than three years. Going into a nursing home, how long are you going to be around? Well, maybe statistically less than two years. But that trend's getting longer, too. Again, medicine's getting better. We're all living longer. But that's the challenge, I guess.
Interviewer: I know that, again, one of the great challenges from a financial perspective is these are not inexpensive when you need that full-time attention. I know from geographically across the US, it's probably different in San Diego than it might be in Louisville, but what are we talking about? Is it somewhere in the six, $7,000 a month range? Is that a pretty good number for what it actually costs to be part of one of these long-term care facilities?
Trey Fairman: That's a pretty good national average. In my report, there's a page that actually talks about that. Genworth has a great website, which is called Cost of Care. If you were just to Google Genworth Cost of Care, it'll put you to a website that you can pick the area and run all those numbers. But I would say nationally, it's about $90,000 a year, seven, 8,000. Southern California's going to be more than that. That's closer to about 110,000 a year. The Midwest, it would be less…it is not cheap at all. Getting care in your home, that's going to be less than that number. But still, it's three, $4,000. So it's a big number. Absolutely.
Interviewer: When I do the math on that, and I think using a six, $7,000 a month kind of thing, we're talking about 60, 70, 80 grand a year, you can whittle through a whole lifetime of accumulation and saving in two or three years. And then, of course, if you're married and you leave a spouse that you've had to spend down all your cash and your retirement funds, that's the financial challenge. I know, again, that the insurance industry has come up with some more creative approaches now to helping to handle this long-term care issue. Talk to us a little bit about some of the more current products and the hybrids that are now available.
Trey Fairman: Okay, great. I'm going to talk about the easiest one to understand, which I think is the least talked about. It's just a long-term care annuity. Congress got involved and in 2006 in the what's called Pension Protection Act, when they passed that law, they put a section in that tax law that says the following, "If you have a long-term care annuity, you can access all the gains in that annuity income tax free to pay for long-term care."
Trey Fairman: Here's a quick example. Let's assume a client put $50,000 into their fixed annuity. It grew to be worth $150,000, and that's great. If they need to use that money to pay for long-term care the way the income tax code works is, as they start pulling money out of that annuity, because they've earned an extra 100,000, that's all ordinary income, that's all taxable.
Trey Fairman: If we just exchange or transfer the money from that older type of annuity to a long-term care annuity, that person could access all those gains to pay for long-term care income tax free.
Trey Fairman: Right there, that's a no-brainer, right?
Trey Fairman: That's one. Now, in addition, depending on their age, if you're under 75 you can actually get an additional long-term care bonus or pool of money. In reality, that 150,000 is probably worth, let's say, 250,000. That's the pool to draw on to pay for long-term care. From an investment perspective, that's a guaranteed number. It's a tax-free number. It becomes really hard for us to generate that growth in a non long-term care vehicle. So 71, that's easy.And then two, really in response what the insurance industry took the lead on is they said, as we were talking about earlier, "Okay. Clearly, we, the industry, got the pricing wrong on long-term care, but we really are good at pricing life insurance." Back in the mid '80s, one of the insurance carriers said, "Well, heck, why don't we just give clients access to the life insurance benefit tax free to pay for long-term care before they pass away?" So now what you see in the market is really a lot more of what are called these hybrid long-term care policies that are really a life insurance chassis that provides complete guarantees, so we don't have to worry about premium increases, and you access a pool of money to pay for care just like you do with a traditional long-term care.We can structure these new life insurance hybrid long-term care plans where you pay an annual premium. Let's say it's $2,500 a year, which is the national average of someone paying annually for long-term care premium. But we know that premium's not going to go up, and we know it's guaranteed to be enforced. Sometimes we can pay it off with just a lump sum. So a lot of clients that we talked to about, "Hey, you've got old life insurance policies. Let's upgrade them to these newer contracts that provide you a bigger tax-free benefit to pay for long-term care."
Interviewer: Trey, can you hang on for another segment? We have some callers that are calling on the phones that have some questions for you.
Trey Fairman: Sure. Love to. Of course.
Interviewer: Okay, great. Fantastic. We're going to ask Trey Fairman to hang on for another segment. I know, Larry, you're on the line. We'll get to you first thing right after the break. Lots more coming on this Friday afternoon edition of the Word on Wealth. By the way, friend, if you would like to reach out and talk with Trey off the air about a long-term care issue you can reach him at 619-993-0013. We're going to ask Trey to hang with us. Larry, you'll be the first order of business when we get back from the break, so hang on. We're going to take our bottom of the hour break. More ahead on this Friday afternoon. This is the Word on Wealth Financial Network. I'm the retirement professor. Short break. We'll be right back.Glad to have you along on this Friday afternoon edition of the Word on Wealth. We have a special guest, Trey Fairman, joining us this afternoon. Trey's a pretty smart guy, got a bachelor of science and finance from the University of Delaware, along with his law degree and master of law in taxation from the University of San Diego. Pretty smart fellow. He's become quite the expert on long-term care issues, so we invited him to join us live on this Friday afternoon. If you have a question for him, we got the phone lines open. Speaking of questions, let's go to the phones and take our first caller here on this Friday afternoon. Let's speak with Larry, who's calling us from the inland area this afternoon. Larry, thank you for your patience on this Friday afternoon. How are you doing today, Larry?Larry:I'm doing good, Marty. I'm up here at the Home Depot and I was listening to the station. I thought I'd give it a call. I've got a question.
Interviewer: Sure thing.Larry:My question is, I'm going to be 70 this year and I was talking to somebody and they said I was too old for long-term healthcare. But then when I heard about the hybrid... My question was going to be, should I just... Because I can handle it financially, but should I just buy life insurance, and then when I die my wife would get that money that we used out of our assets?
Interviewer: Good question. Let's throw that over to Trey. Trey, you heard Larry's question. How would you react to that question?
Trey Fairman: I'd say a couple things. Larry, I'm a broker. As you know, Marty is as well. When I talk about the market, it's all the carriers in the world. It is not accurate that when you turn 70 you can no longer buy long-term care insurance. There are some carriers that won't provide it to you, but you can definitely get it after age 70. You can actually use some of those long-term care annuities up until when you're 80. That's still available. Obviously, the older you get the less or the more expensive it becomes. So that's the answer to one.And then two, as far as just buying pure life insurance, I don't know if I would go that route. I would look at one of these hybrid policies, because you're going to then have a much bigger pool to use to pay for long-term care. Now interestingly, you didn't ask this question, but you talked about your wife. There is a carrier or two that actually has a joint long-term care policy. In the insurance world, if we can ensure two people, especially if they're married and they're going to take care of each other and one's a male and one's a female, we get really good pricing on long-term care coverage. I would say that would be something that you should think about or explore.Buying a life insurance policy just to replace it for your wife, I don't know. I've never really thought about that approach. I guess that's somewhat like a charitable planning approach where you leave your assets to a charity and then you give a tax-free life insurance policy to your kids. I guess in my world, I don't know if that really makes a lot of sense.
Interviewer: Larry, there you go. Apparently, age 70 is not the end of the opportunity to go ahead and pick up a long-term care policy. I know there is a belief system out there that says at a certain age you can't get it anymore. I'm going to throw this over to you, Trey. Obviously, when you purchase or apply for a long-term care policy there's going to be some medical underwriting, and certainly the older we get the more likely that we've encountered a variety of medical challenges along the way. So that's another issue. How difficult is it to actually acquire the coverage if you want to get it from a medical underwriting standpoint?
Trey Fairman: It's not difficult. Let's say you're 80. What becomes difficult when you're 80 is getting leverage on your money. Just for a second, let's forget about paying $4,000 a year. Let's assume that you have $100,000 CD and you say, that's my money to pay for long-term care. If you're 65 and we use that as a premium into a hybrid policy, maybe you create a pool of money for long-term care of $250,000, so your 100,000 just turned into 250,000 when you're 70. When you're 80, your a $100,000 is not going to turn into 250, it's going to turn into maybe 140,000. So that's not really that great. But what I would say is really good for those 80 year olds, and this is where we typically provide tons of value, is if they have annuities. We just made all that tax go away on their annuity values to pay for long-term care.
Interviewer: I have a question for you on that, Trey. Sorry to interrupt you. In order to do that, we're transferring from annuity, A, their existing annuity account, into this other qualified annuity. Is that correct?
Trey Fairman: Well, not qualified for tax purposes, but let's say long-term care compliant annuity, of which there's about three or four out there.
Interviewer: Okay. That transfer from the older one to the long-term care qualified annuity is what creates that opportunity for that tax-free distribution. How difficult is that process?
Trey Fairman: That process isn't very hard at all. You're not 100% guaranteed to qualify for that long-term care annuity, but I would tell you that 99% of people qualify for it. Really, the only person that couldn't qualify for that wrapper is someone that is in very bad health. Now, the important point with all of this is, even if you qualify... I'm sure Marty, you do this too. What I tell my clients is, "Even if you qualify, I'm still going to tell you whether it's a good financial transaction or not. You could qualify and your 100,000 could turn into 103,000 of long-term care benefit." I would say, "you qualify, but don't do this. You could invest the money and it's going to grow to be worth more than 103,000 in the next year."I don't think qualifying... Some people just can't because they've waited too long or they just have... What I tell some clients is, it's like car insurance. You can't buy car insurance right after you have the car accident. You can't buy long-term care insurance on the way to the nursing home. But there's usually some solutions, as you look at it from a comprehensive perspective, that you can make some adjustments that overall help your ability to pay for long-term care; whether that's an annuity, a hybrid life insurance policy, or sometimes, as I'm sure Marty you do too, just reallocating their portfolio to better provide income to pay for those expenses.
Interviewer: Right on. Exactly. Just a reallocation. A question that I have for you, Trey, is, when you talk about this topic you're obviously knowledgeable about the product, the program, the history of long-term care. We have this massive generation now that I'm a part of, the baby boomers, some 70 million plus that are steamrolling into their retirement years rapidly. What's the number one thing, the most important thing, that you would want people to remember about this topic, about long-term care? What would you say is the top of the list?
Trey Fairman: I would say that the top of the list, and we touched on it earlier, is just have a plan. Be aware of the issues. Be aware of what those lever points are. Talk to your family or your spouse about it. I'm going to give another book here. I didn't write this book. This is a great book. The book is called The Conversation, Helping Someone You Love Plan for an Extended Care Event. And the author is Harley Gordon. Harley Gordon is a elder law attorney back in the northeast. In that book it talks about just let's have a conversation amongst the family. Let's have a plan, at least understand what we're thinking today. And plans change, right?
Trey Fairman: What we do today may not be the best plan two or three years from now. But again, the number one thing is to just, I think, don't put your head in the sand. Understand what's out there. Just understand and see how it evolves, just like you would any other planning, whether it's financial or just otherwise.
Interviewer: One more time, I had a question here. The free report that you wrote that you are offering here today to our radio listeners that if they send you a text they can get a copy of this or emailed over to them. If we have listeners that would like to get a copy today, Trey, of your free report, again, would you give us the way to get that done, please?
Trey Fairman: Sure. So you just send a text. The phone number, if you will, that you send it to, it's 345345. In the message you're going to put LTC for long-term care. So the letter L, the letter T, the letter C, text that to 345345.
Interviewer: Okay, great.
Trey Fairman: What'll happen, you'll get a quick response, it'll ask you for your email and then we can email that out to you.
Interviewer: Fantastic. So just text the letters LTC over to the phone number, which would be 345345. They'll make arrangements to get Trey's free report on this very, very important topic. Also, you can call if you'd like to chat with Trey off the air about a particular situation that you may be aware of or involved in. You can reach Trey at 619-993-0013. Well, Trey, gosh, just a wealth of information. For listeners that may have joined late, Trey Fairman has been our guest here. He's well known for his involvement in working with financial planners, advisors, attorneys, banks, private banks; a graduate of the University of San Diego Law School, a master of laws and taxation, and just a pretty smart guy.If you'd like a little help in this very challenging discussion, we invite you to connect with Trey off the air directly 619-993-0013, or text the letters LTC to the phone number 345345, and you can get a copy of Trey's free report, which I think you'll enjoy. Trey, you've been a great help this afternoon. I sure appreciate having you on. Thank you for sharing part of your Friday afternoon with us. I'd love to have you back again. I hope you have a fantastic weekend ahead. Trey Fairman, thank you so much, my friend.
Trey Fairman: Yes. Thank you, Marty. Anytime. I appreciate it.
Interviewer: Unfortunately, friends, we are out of time on this Friday afternoon. The hour went so quickly. Again, a big thank you to Trey Fairman for joining us in a detailed discussion of long-term care issues. We'll have Trey back again for sure. It's been a great week and a long week. We're going to say goodbye here. I'll be back with you Monday, same time, same place right here in these very same Salem Network stations. I hope you have a fantastic weekend ahead. God bless each and every one of you. This is the Word on Wealth Financial Network, and I'm the retirement professor, Marty Schneider, signing off. Blessings to y'all. We'll see you on Monday. Bye, bye.
This transcript has been edited for length and clarity and all statements were general in nature. Laws have changed since the recording date, so please consult a qualified advisor regarding your specific situation.