New bill creates long-term-care accounts

A bill was introduced last month that includes the language of an earlier measure that would create long-term-care trust accounts. S. 1980, sponsored by Sen. Gordon Smith, R-Ore., focuses on improving the quality of long-term care and access to it, but also would allow individuals to contribute up to $5,000 per year to a trust account and would provide a 10% tax credit on the amount contributed. Interest accrued would be tax-free. The bill was referred to the Finance Committee. For more details, visit http://thomas.loc.gov