Five strategies to ensure in-home health care isn’t an unfunded liability
When exploring in-home health care options, all families want the best for their loved ones. Several opportunities exist to plan for the expense of funding in-home services without sacrificing the quality of care.
Create a plan: The first step towards finding effective ways to fund in-home care is establishing a realistic plan. As people get older, spending on healthcare increases. In 2021, individuals 55 and over accounted for 55% of total health spending, despite making up only 31% of the population; and average healthcare expenditures for the population aged 65 and over were 4.4 times higher than for those under 65.
Take inventory: Examine what financial resources you already have in place. Do you have long term care insurance? Do you receive governmental, employer, or family trust benefits that cover in-home health care? Do you have a life insurance plan that includes long-term care?
Be informed: Work with a wealth or health advisor to understand additional resources that might become available as you age – such as tax opportunities and lifetime gift exemptions – or to uncover more creative ways to pay for services.
Maximize deductions: In-home health care expenses can qualify as deductible medical expenses if they and other unreimbursed medical expenses exceed a certain percentage of adjusted gross income (AGI). Leveraging ROTH IRA disbursements is another way to access a tax-free form of funding.
Explore creative financial instruments: Examine whether you could benefit from entities like a Charitable Remainder Trust, a Family Limited Partnership, or a Special Needs Trust to offset costs and provide valuable tax deductions
Funding in-home health care has complex rules and requirements, so working closely with financial planners, tax advisors, and legal experts is advisable to ensure your plan is efficient and compliant with tax regulations.
TrustHouse is a premier, bespoke in-home care provider that delivers personalized services tailored to meet the exacting standards of discerning families. With rigorously vetted, trained, and certified private duty nurses, we guarantee superior care, better health outcomes, and enhanced peace of mind.
To request care or learn more about TrustHouse, please contact us at 212.776.4390.