The AP&S Trusts & Estates Blog
By David T. Riedel and Kathryn S. Windsor
May 23rd, 2024
Few events can upend your estate plan as the way unanticipated long-term care (LTC) expenses can.
Estate planning is about much more than reducing taxes; it’s about ensuring your loved ones are provided for after you’re gone and that your assets are passed on according to your wishes. LTC expenses generally aren’t covered by traditional health insurance policies, Social Security or Medicare. Thus, to preserve as much wealth as possible to pass on to your family, it’s critical to form a plan to fund any LTC expenses.
While no one wants to contemplate the need for LTC, it’s good to know that there are several potential strategies for funding the associated expenses. Your advisor can help you find which option is best for you and your family.
Be aware that there are tax benefits available that can help offset some LTC expenses. If you self-fund the cost of your LTC, your out-of-pocket expenses generally will be deductible as medical expenses, but only if you itemize deductions on your tax return. Medical expenses are deductible to the extent they exceed 7.5% of your adjusted gross income (AGI).
Adler Pollock & Sheehan (AP&S)
