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How Costs of Long-Term Health Care Hurt Farm Families


Costs of Long-Term Health Care Hurt Farm Families

No one ever thinks they will need long-term health care. What most folks do is ignore the problem, or purchase the least expensive policy possible. For farm families, failing to plan for long-term health care for aging family members can unravel an otherwise carefully constructed business transition plan. They may not be aware of how expensive health care costs have become, and simply do not know how to shelter assets.

The Hutchinson (MN) Leader reports in a recent article, “Why farmers need to plan for long-term care,” that long-term health care costs could be even more financially devastating to a farm business than any tax issue. The article emphasizes that long-term care costs can thwart all of your transition and estate planning, if it’s not addressed.

A total of 50% of those Americans who are currently 65 or older will have some type of stay in a nursing home. One in 10 will have a nursing home stay that will be more than five years. Of those now getting nursing home-level care, 40% are younger than age 65.

A recent survey estimates that long-term care costs on average $65,000, with a private nursing home room at $97,000. At the most, Medicare will pay for a 100-day stay in a nursing home, if certain criteria are satisfied.

Note that Medicaid eligibility rules say an applicant can’t own more than $3,000 worth of assets and prepaid burial proceeds. In addition, life estates and most trusts won’t shelter assets from long-term care costs. If assets are given away, it must be done 60 months before the donor can qualify for Medicaid.

Long-term care insurance is the only way to protect farm business assets from the explosive costs of long term health care. An elder law attorney will be able to help your family make these critical decisions that need to be part of your plan for the farm and the family’s future.

Do you live in Miami-Dade, Broward, or Palm Beach counties in Florida? Laws are constantly changing-- has your estate plan been reviewed in the last 2-3 years? Call me (954-888-1747) right away for peace of mind. I can help!

  • My practice is exclusively estate planning and probate,
  • I have prepared numerous estate plans in 16 years of practice,
  • I have administered estates and trusts through Probate all over Florida,
  • I am a Certified Financial Planner Professional™, and
  • I am here for YOU today and there for your FAMILY tomorrow.

Reference: Hutchinson (MN) Leader (March 11, 2017) “Why farmers need to plan for long-term care”

Why would we recommend D.T.F.? Several Reasons: Your ability to explain complex estate problems, clearly and patiently; your total lack of arrogance and pretense; a strong feeling that you are motivated by what you perceive is best for your client, rather than what would generate the largest legal fees; finally, and importantly, you are a lovely guy. A.C.

Two words cannot sum up the entire process of creating my “trust.” I enjoyed your attention to detail, your patience of explaining terms and conditions until I understood, also giving me copies to read and understand. Thank you for your suggestions on what was best for “me” but still allowing me to make my choice. Most of all, thank you for thinking of “me.” Wells Fargo said “you were the best” I cannot deny that. Again thank you very much for everything. Anna is an asset or a compliment to the firm. She is warm and very caring. It was great doing business. Thank you.