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Lawyer Criticizes LTC Trust Concept

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Frank Darras says letting insurers cope with long term care insurance liabilities by putting policies in a separate trust will backfire.

Darras, an Ontario, Calif., lawyer who often represents plaintiffs in suits against insurers, notes that an LTC insurer has been trying to set up an LTC policy trust in Pennsylvania.

“Boomers beware, this is just the beginning,” Darras says in a commentary about the trust.

If efforts to set up the trust to succeed, “the template for other insurers to dump their poorly performing long term care blocks will be set in stone,” Darras contends.