Webinar Recap:
How Sound Financial Planning Can Guide Families Through the Complexity of a Long-Term Care Event

Thursday | September 24, 2020
2:00 PM CST

Presented by
Michael Ford

Video

Webinar Q&A

Is it possible to deduct part of your long term care expenses from your taxes as a medical expense?

Yes, for qualified long term care expenses. You’ll need to itemize deductions and medical expenses must also be at least 10% of your adjusted gross income in order to obtain a deduction. Some policies have a cap that varies by age range and others are not deductible. Please be sure to review your options with a qualified tax professional.

Are trusts still an effective vehicle for long term care planning?

Yes, they can be. Consider the five year look-back provision. Also, remember that with an irrevocable trust you are giving up control of your assets. With respect to medicare planning a trust may be well worth it, but know that with a revocable trust you control the assets and medicare views it that way and factors the assets.

With low interest rates, are long term care policies still viable given premiums have increased?

In general, yes. Make it part of the financial planing process. If you have an existing policy, considerate in the context of the larger financial planning activity. Does it still make sense given other aspects of your financial plan? Err on the side of keeping it enforced.

At what age should families start planning for long-term care?

At what age should families start planning for long-term care? Great time to start is in your 40’s, definitely by the time you are in your 50’s. Plenty of families wait until well into their 60’s and may not be insurable. Bottom line: the longer you wait, the more expensive it can be and the more difficult it becomes to qualify.

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