Planning to preserve assets while providing long-term-care options
December 31, 2025
A question all CPAs and financial advisers need to be asking their clients is: “If you were to need long–term care (LTC), either at home or in a facility, how would you pay for it?”
Many people believe Medicare pays for LTC, but, as we know, it does not. Many think Medicaid will be a solution when the time comes, but changes in the Medicaid program leave its future in doubt. Plus, they will need to meet the eligibility requirements by spending down their assets and meeting other income criteria.
People with substantial nest eggs may be planning to self–fund LTC, which can work — until expenses start to drain their assets. Monthly care costs often range from $6,000 to $25,000, and few want to deplete their savings at that pace, potentially leaving little to nothing behind for their heirs. LTC insurance (LTCI) helps offset these expenses, though some out–of–pocket costs may still apply, especially during the policy’s elimination (deductible) period.
Click here to read the full article on The Tax Adviser.
Reprinted with permission.
Contributors
Brian Gordon, CLTC, is president, and Peter Florek, CLTC, is vice president, both of Gordon Associates, serving clients nationwide from their headquarters in suburban Chicago. For more information about this column, contact thetaxadviser@aicpa.org.
