Preserve Your Client's "Step-up" in Capital Gain Basis

Long-term care insurance can help preserve tax attributes like the "step-up" in capital gain basis that otherwise would be lost. Without long-term care insurance, it is possible that additional taxes would be owed to the IRS if those assets had to be liquidated to pay for long-term care.

$12,000 Gift Tax Exclusion

Long-term care insurance can be used to capitalize on their annual gift exclusion allowance. If your clients want to pay the premiums for any family members, the premiums paid (directly to an insurance company) can be considered "gifts." IRC2503(e)  This is in addition to the annual $12,000 gift tax exclusion.

Protect Your Client's Qualified Funds

Many times clients have to liquidate qualified funds to pay for long-term care, and then are hit with the tax ramifications of doing so. A long-term care insurance policy can prevent them from having to liquidate their qualified funds.

Tax Savings for Business Owners

Long-term care insurance can be paid for by the business for the owner only, unlike other forms of insurance. Please go to the FOR EMPLOYERS button for more information on this.