As long-term care costs continue to rise, farm families face unique challenges in planning for long-term care. Without proper preparation, the financial burden of extended care can jeopardize family assets, including cherished farmland.
Matt McCann, a nationally recognized expert in long-term care planning, emphasizes the importance of proactive measures to protect both health and heritage.
"I talk to families nationwide, and their top priority is always the same: keeping the family farm in the family. With people living longer and the growing likelihood of needing long-term care—paired with ever-increasing costs—planning for long-term care is absolutely essential."
McCann says Long-Term Care Insurance is the affordable option, and family farms have tax benefits when they add an LTC policy to their retirement plan.
Rising Costs of Long-Term Care
Long-term care expenses have been steadily increasing across the United States. According to a survey of long-term care costs nationwide from LTC News, the national median annual cost for a private room in a nursing home is approximately $115,000 in 2025, with projections reaching over $190,000 by 2041, depending on where you live.
Most long-term care is provided at home or in assisted living facilities. Home health aide services, which enable individuals to receive care in the comfort of their own homes, currently have a national median annual cost of $61,604, with those costs projected to increase significantly in the coming years.
McCann says that these escalating long-term care costs can be particularly burdensome for farm families, whose assets are often tied up in land and equipment rather than liquid financial resources.
"Without a strategic plan, families may face the difficult decision of selling portions of their land to cover care expenses, potentially incurring significant capital gains taxes and disrupting the family's agricultural operations."
Importance of Long-Term Care Planning
Long-term care costs can create liquidation of assets without planning since health insurance and Medicare only pay for short-term skilled care.
"I hear from farm families from all over the country. This is a key concern," says McCann.
"The costs of care can create liquidation of assets. Too many farmers have seen this happen to fellow farmers, and they want to make sure the land stays in the family."
Proactive long-term care planning enables families to safeguard their assets and ensure the continuity of their farming legacy. By addressing potential care needs in advance, families can avoid the emotional and financial strain often accompanying unexpected health crises.
McCann also points out that family members often either work on the farm or live elsewhere, making it difficult for them to serve as caregivers. With the high cost of professional care, a long-term care plan can safeguard the farm, ensure access to quality care, and ease the burdens that would otherwise fall on family members.
Long-Term Care Insurance: A Strategic Solution
The best strategy for protecting assets is to acquire a Long-Term Care Insurance policy, and most people do so between the ages of 47 and 67. These policies are designed to cover expenses related to extended care services, including in-home assistance, assisted living facilities, and nursing homes. By securing an LTC policy now, families can mitigate the risk of depleting their resources to pay for care.
McCann notes that for many, Long-Term Care Insurance is an affordable solution.
How Much Does Long-Term Care Insurance Cost?
"Most of my clients find very affordable coverage, depending on their age, health, and the total amount of benefits applied for."
McCann also says there are qualified LTC insurance policies that include death benefits. In most states, partnership policies offer additional dollar-for-dollar asset protection.
Unlimited Long-Term Care Benefits for Complete Asset Protection
For farm families particularly concerned about asset protection, two insurance companies offer policies with unlimited long-term care benefits. These plans provide coverage without a predetermined cap, ensuring that all care expenses are covered regardless of duration.
"This level of coverage offers comprehensive protection for family assets, including farmland, by eliminating the need to liquidate property to fund care."
Tax Implications and Asset Preservation
Selling farmland to cover long-term care costs can trigger substantial capital gains taxes, further eroding the family's financial standing. By investing in long-term care insurance, families can preserve their land and avoid the tax liabilities associated with its sale. This approach not only protects the family's primary source of income but also maintains the legacy for future generations.
Taking Action: Steps for Farm Families
- Assess Care Needs: Evaluate the value of your farm and the importance of protecting some or all of it when you need long-term care services in the future.
- Explore LTC Insurance Options: Consult with a Long-Term Care Insurance specialist to understand the available policies, including those offering unlimited benefits, and determine the best fit for your family's needs and financial situation.
- Plan Early: Securing LTC Insurance at a younger age can result in lower premiums and greater policy options. Early planning also ensures that coverage is in place before health issues arise.
- Compare Quotes: Work with an independent LTC Insurance specialist to provide you with accurate quotes from all the top-rated companies offering long-term care solutions. McCann says that premiums and underwriting rules vary dramatically between insurance companies.
Long-term care planning is a vital part of your overall estate and succession plans, ensuring asset protection and quality care while easing the stress and burden on loved ones.
Stakes are High
For farm families, the stakes of long-term care planning are particularly high, with the potential loss of both financial stability and generational heritage. By proactively addressing long-term care needs now through strategic planning and LTC Insurance solutions, families can protect their assets, avoid the pitfalls of unexpected care costs, and preserve their farming legacy for future generations.
"Long-term care is both a cash flow challenge and a family concern. Without proper planning, it can quickly escalate into a family crisis."
Taking steps now to plan for long-term care is not just a financial decision but a commitment to sustaining the family's way of life for years to come.
Get Professional Planning Help
Matt McCann is licensed in all 50 states and the District of Columbia, representing top-rated insurance companies that provide long-term care solutions. His innovative approach allows clients to consult with him over the phone while viewing his computer screen, ensuring a convenient and transparent process for learning about, exploring, and selecting the best options.
You can get free and accurate quotes from all the top companies, along with professional recommendations - Free and Accurate Quotes.
Media Availability
McCann is available for radio, TV, and podcast interviews. He also speaks to groups and organizations worldwide on the issues of aging, caregiving, health, and long-term care. Contact McCann through his website for information.