Farmers Need To Protect Land & Legacy From LTC

The financial costs and burdens of aging affect every American, but for those in rural communities—especially farmers and ranchers—the stakes are often much higher. Much of your wealth is not liquid. It is tied up in land, equipment, and the business itself. That creates a serious challenge when long-term care is needed.

You may want to pass your land, livestock, and legacy on to the next generation. Keeping the farm or ranch in the family is more than a financial goal—it is personal. But without a plan, the high cost of long-term care can force difficult decisions, including selling land or other assets to pay for care.

Planning ahead is essential. Long-term care services—whether at home, in assisted living, or in a nursing facility—are expensive and rising every year. Medicare and health insurance provide only limited, short-term coverage and do not pay for ongoing custodial care. That means the responsibility often falls on your savings, your family, or both.

An affordable Long-Term Care Insurance policy, designed before retirement or changes in health, can help protect your assets and preserve your legacy. It gives you access to quality care while helping ensure your land and wealth stay where you intended—with your family.

Without that planning, the risk is clear: the farm you spent a lifetime building could be partially or entirely lost to the cost of care. With a plan in place, you maintain control, protect your independence, and safeguard what matters most.

Estate and Business Transition Planning

The University of Nebraska Center for Rural Affairs emphasizes that long-term care planning is a critical part of both estate planning and business transition—especially in rural America.

You are seeing growing awareness among farmers, ranchers, and small business owners that the cost of long-term care can quickly erode a lifetime of work. For many, wealth is concentrated in land or the business itself, not in easily accessible cash. That makes these assets vulnerable when care is needed.

Without a plan, the financial impact can be severe:

• Land may need to be sold to cover care costs
• Business operations can be disrupted or forced to close
• Heirs may receive far less—or nothing at all
• Family transitions become complicated and stressful

This is why long-term care planning is no longer optional—it is a key part of protecting your legacy. By addressing potential care needs early, you can help ensure that your farm, ranch, or business remains intact and is successfully passed on to the next generation, rather than being diminished by unexpected care expenses.

What is the risk of needing some type of extended health care? High. The U.S. Department of Health and Human Services says if you reach the age of 65 you have a 56 percent chance of needing some type of Long-Term Care service before you die. With advances in medical science we live longer, we survive health events and accidents. This all leads to more aging issues in addition to many health events which cause the need for help with activities of daily living or supervision due to memory problems.

Responsible Advance Planning Keeps Land and Legacy in Family Hands

Part of any responsible retirement and legacy plan is to provide for the financial costs and burdens that Long-Term Care places on loved ones. Long-Term Care Insurance is an affordable way to ease the burden and help preserve the farm or range for generations to come. 

I hear from farm families from all over the country. This is a key concern. The costs of care can create liquidation of assets. Too many farmers have seen this happen to fellow farmers and they want to make sure the land stays in the family. For many, Long-Term Care insurance will protect their farm and other assets and plans are very affordable if they plan early when their health is better.” — Matt McCann, a nationally recognized expert in Long-Term Care Planning.

One of the biggest threats to your family legacy is the high cost of care later in life. These expenses can quickly add up and vary widely depending on where you live. Most long-term care is not provided in nursing homes—many people receive care at home or in assisted living. However, nursing homes remain the most expensive option, which is why planning matters.

A well-designed Long-Term Care Insurance policy gives you flexibility. It can pay for care in all settings, including your own home, helping you maintain independence while protecting your assets and the legacy you want to pass on.

Cost of Long-Term Care Services Can Be Staggering

For example, in Iowa, an average skilled nursing home will run about $129,888 a year according to the LTC News Cost of Care Calculator. Monthly care at home averages about $6,000 a month with base assisted living facilities running around $5,000. However, costs in Ohio will be more. A Long-Term Care specialist can discuss the cost of care in your area.

Another major concern is the burden placed on your family. Without Long-Term Care Insurance, a spouse or adult child—often a daughter or daughter-in-law—typically becomes the primary caregiver, at least in the early stages. That responsibility can take a real toll. Spousal caregivers frequently experience declines in their own health due to stress, physical demands, and emotional strain. Adult children often juggle careers, raising their own families, and other obligations. In many cases, they may not even live nearby, making consistent care even more difficult.

At the same time, you cannot rely on traditional coverage. Health insurance and Medicare—including supplements—only pay for limited, short-term skilled care, and only when you are improving. They do not cover ongoing custodial care or supervision. As a result, most long-term care costs fall directly on you and your family unless you have planned ahead.

Variety of Long-Term Care Planning Options Available

There are three types of LTC Insurance plans available. Traditional tax-qualified plans provide a monthly or daily benefit once you qualify for benefits. Generally, you start with a pool of money and both the monthly benefit and benefit pool are subject to inflation increases in those benefits. In many states, you have additional “partnership” benefits which provide dollar-for-dollar asset protection in the event you spend through your LTC policy money.

Learn more at the LTC News Learning Center.

Hybrid plans are also available. These are usually single premium life insurance policies or annuities with a rider for Long-Term Care.  Be careful, some of them are just an advance of death benefit or will only provide benefits for critical illness not traditional Long-Term Care. A Long-Term Care Insurance specialist can discuss the differences.

However, a few of these hybrid plans are full cash benefits. With a single premium, a farmer or rancher can pay once and never worry about ongoing premiums again. Plus, with a death benefit your estate will also have the benefit of either a tax-free long-term care benefit or a tax-free death benefit. 

Short-Term plans are also available. These provide a year of extended care. While not a complete solution, for some people with health issues this might be an appropriate option.

One of the features that makes these products extremely attractive is the ability to select a 0-day Elimination Period (EP). “Most traditional LTC Insurance policies require that a doctor certify a need for care lasting longer than 90 days and have a 90-day wait period for benefits.  With a 0-day EP period the policyholder accesses policy benefits early on when they need care.” — Jesse Slome, executive director for the American Association for Long-Term Care Insurance (AALTCI).

Your Land is Your Legacy

The assets you’ve built over a lifetime—your land, your farm, your savings—will ultimately serve one of two purposes: your lifestyle or your legacy. You get to decide how much is dedicated to each. You are in control.

But one factor can disrupt even the best plans: the cost of extended healthcare. Without preparation, long-term care expenses can force the sale of land or other assets you intended to pass on. That’s why the time to protect your property and your future is well before retirement or any change in health. The peace of mind that comes with a plan is invaluable.

Your land is more than an asset—it’s your legacy. You can’t control the weather or commodity prices, but increased longevity means a higher likelihood of needing long-term care services. With advance planning, you can help ensure your land stays in the family and your financial future remains secure.

Frequently Asked Questions About Long-Term Care and Protecting Your Farm or Legacy

What is the risk of needing long-term care?

If you reach age 65, you have about a 56% chance of needing some type of long-term care service in your lifetime, according to the U.S. Department of Health and Human Services.

Why is long-term care planning especially important for farmers and ranchers?

Much of your wealth is tied up in land, equipment, and your business. Without planning, long-term care costs can force the sale of these assets, putting your family legacy at risk.

Does Medicare cover long-term care?

No. Medicare and health insurance only cover short-term skilled care, and only if you are improving. They do not pay for ongoing custodial care, supervision, or extended care services.

Where is long-term care typically provided?

Most long-term care is provided outside of nursing homes. Common settings include:

• Your own home
• Assisted living facilities
• Memory care communities
• Adult day care

Nursing homes are typically the most expensive option.

How much does long-term care cost?

Costs vary by location, but they can be significant. For example:

• Nursing home care can exceed $100,000 per year
• In-home care can average around $6,000 per month
• Assisted living can average about $5,000 per month

These costs continue to rise over time.

How does long-term care impact my family?

Without a plan, your spouse or adult children often become caregivers. This can lead to:

• Physical and emotional stress
• Health decline for caregivers
• Financial strain and lost income
• Family conflict or disruption

Planning helps reduce this burden.

What is Long-Term Care Insurance and how does it help?

Long-Term Care Insurance provides tax-free benefits that can pay for care in all settings, including your home. It helps:

• Protect your assets and land
• Preserve your legacy for your heirs
• Provide access to quality care
• Reduce the burden on your family

When should I plan for long-term care?

The best time to plan is before retirement or any decline in health. Planning early makes coverage more affordable and increases your options.

What types of Long-Term Care Insurance policies are available?

There are several options:

• Traditional policies with ongoing premiums and inflation protection
• Hybrid policies combining life insurance or annuities with care benefits
• Short-term care policies for limited coverage

Each option has different features, so working with a specialist is important.

How can I keep my farm or land in the family?

You protect your legacy by planning ahead. A comprehensive long-term care plan—often including Long-Term Care Insurance—helps ensure you don’t have to sell land or assets to pay for care.

Why is long-term care part of estate and business planning?

Long-term care costs can disrupt estate plans and business transitions. Without preparation:

• Assets may need to be liquidated
• Business operations can suffer
• Heirs may receive less than intended

Planning ensures a smoother transition and protects what you’ve built.

What is the biggest takeaway?

Without planning, long-term care can quickly erode your savings and legacy. With a plan, you stay in control, protect your assets, and ensure your family—and your land—are taken care of.