I'm 55, wife is 60. Plan on retiring in a little over a year and have decided to skip long term care insurance and self insure instead. Based on family history, there is a good chance one to five years of care will be needed when we are in our mid eighties, so funds set aside for the self insurance have a couple decades to grow.
My question is where exactly to set aside the funds (which are probably going $250K and 100% VTI). I don't have an HSA, but I do have the following available to me 1) my Roth IRA, which I don't need for retirement funds (TSP will be more than adequate); 2) a regular taxable account; and 3) an inheritance held in a trust account (not yet in place, but should be soon). I was planning on just using the trust account, but realize that the tax treatment of trusts may make this a less desirable choice, especially if I need to make tax decisions when I am in my eighties and may not be all there mentally.
Or am I overthinking this, and shouldn't really have a designated pot of money for LTC as long as I have adequate funds across all accounts? My thinking was if I am going to say I am self insured that's only true if I have the funds specifically set aside for it.