Conferences
The Impact of Long-Term Care Costs on Farming Operations
Robert Moore
Summary
This presentation will provide an overview of long-term care costs, the risk of those costs to farm operations and strategies to mitigate the risk.
According to surveys, 7 out of 10 people will require long-term care during their life. The annual cost for a nursing home in the United States is a $93,000 with the average stay being around 2.2 years. The financial sustainability of many farming operations is at risk due to potential long-term care costs. Farms that are unable to absorb long-term care costs may be required to sell assets which can jeopardize the financial viability of the farming operation for current owners and future generations.
While there are no easy solutions to evade long-term care costs, there are several strategies that can be used to mitigate the risks. Insurance policies, gifting, irrevocable trusts, and self-insuring are a few of the strategies available to farmers to minimize the risks of long-term care costs. Each of these strategies will be discussed along with the advantages and disadvantages of each.
Medicaid will also be examined and its role in long-term care costs. Generally, Medicaid will only pay long-term care costs for those people with very limited resources. Without aggressive planning done five years in advance, farmers will very seldom qualify for Medicaid. The challenging process of qualifying for Medicaid will be reviewed with emphasis on relinquishment of ownership and control of assets.
Details
| Conference | 2022 National Farm Business Management Conference |
| Presentation Type | Concurrent Session |