Tax Consequences of Not Having Long-Term Care Insurance: A Case Study

Quick case study on the tax consequences of not have long-term care insurance:

Joe, now age 85, has $1 million invested in the stock market.

Joe needs long-term care now. He did not buy a long term care insurance policy when he was younger. His care expenses are now $100,000 a year.
To pay for this, Joe needs to liquidate some stocks.
By selling the stocks at this time, he’s facing a significant potential capital gains tax.
The question to ask is: When Joe was younger, and he could have bought long term care insurance, would he have really preferred to give the government up to 25% or 30% of the proceeds from the stock sales?

When you are ready to talk to an expert about your Long-Term Care Insurance, schedule a call:  calendly.com/jimbetter. Find more long-term care resources in our blog.

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