The Truth About Long-Term Care: Navigating Costs, Hybrid Policies, and Taxes

Don't Transfer Your House to Your Kids to Pay for Care (Here's Why) Make no mistake, long-term care is expensive, and one of the biggest unknowns in retirement is whether or not you will ever need it. The long-term care insurance industry has changed dramatically over the last decade, and the cheap, shared policies of the past simply don't exist anymore. In this video, Senior Advisor and Managing Partner Dave Larson explains how to proactively plan for these potential expenses without sacrificing your financial independence. With assisted living costs in 2025 ranging from $7,000 to $11,000 per month, and skilled memory care easily reaching $13,000 per month, it is easy to see how quickly a lifetime of savings can be depleted. Dave breaks down the modern alternatives, such as self-insuring or utilizing hybrid life insurance policies, and explains why the first step is always running the math with your advisor to see how a two-to-three-year care event would impact your specific plan. What You’ll Learn: The New Landscape of LTC: Why the cheap insurance policies from 15 years ago are gone, and what your options are today. The True Cost of Care: A realistic look at the monthly costs of assisted living and memory care in 2025. The Medicaid Asset Trap: Why transferring your home or assets to your kids to qualify for state care is generally a bad idea that costs you control and flexibility. The Tax Consequences of Gifting: How transferring a highly appreciated asset (like a home) prior to your death can stick your family with a massive capital gains tax bill by losing the "step-up in basis." Timestamp Chapters 0:00 The reality of long-term care and changing insurance options 0:59 Modern strategies: Self-insuring vs. hybrid policies 1:28 The current monthly costs of assisted living and memory care 1:50 Step 1: Running the math for an average 3-year care event 2:17 The danger of transferring assets to your kids 2:28 Maintaining control over the facility you go to 2:54 The capital gains tax trap (losing your step-up in basis) 3:30 Why proactive planning is your best defense You simply never know what life is going to throw at you. Whether you end up needing care or not, having a proactive plan in place ensures that you maintain control over your own choices and your family's financial future. 🔔 Subscribe to our channel for more straightforward financial planning strategies. 🌐 Visit our website: https://www.larsonwealthmgt.com/ 📅 Schedule a Consultation with our team: https://go.oncehub.com/LarsonWealthMtg #LongTermCare #RetirementPlanning #EstatePlanning #WealthManagement #FinancialAdvisor #LarsonWealthManagement