FOR IMMEDIATE RELEASE

Contact: 
Patricia O'Neill, Associate
LTC Financial Partners
pat.oneill@ltcfp.net
703-534-3255

Evolving Tax Benefits Make Long-Term Care Planning More Attractive, Says Falls Church-Based Expert

Multiple Federal and State Incentives Now Moderate the Cost

Falls Church, VA February 18, 2014 – LTC Financial Partners Long-term  care services, which are generally not covered by Medicare or regular health  insurance, can be expensive. “Sticker shock keeps many from thinking about it,”  says Patricia O'Neill, an LTC solution expert for LTC Financial Partners, with offices in Falls Church.

“The  good news is that Uncle Sam and the states want to help,” says O'Neill. The help,  in the form of tax relief, applies to multiple ways of paying for care, ranging  from long-term care insurance to annuities and reverse mortgages.
    •  Tax benefits of owning long-term  care insurance: For the 2014 tax year,  federal tax deduction limits for LTC insurance range from $370 to $4,660,  depending on age. That’s up from $360 to $4,550, the deduction limit range for 2013.  “If you already have a policy, the 2013 limits will apply for this year's  return, due April 15,” Says O'Neill's colleague Ken Dehn, General Counsel for LTC Financial Partners. “If you don’t have a policy, you can set future  deductions in motion now, starting with the 2014 limits.”

In  recent years, many states have followed Uncle Sam’s lead. “Well over half now  offer some form of tax deduction or credit for owning LTC insurance,” says  Dehn. “O'Neill can provide details for VA and other states.”  
    •  Tax benefits of life  insurance and annuities that cover long-term care: So called long-term care riders convert life insurance or  annuity benefits into an LTC benefit covering care when needed, “but most of the  riders now available are not tax-qualified,” says Gil Edwards, another colleague of O'Neill. Edwards is President of  LTC Financial Partners’s Annuities and Life division. “Fortunately, we represent a carrier that does  offer tax-qualified LTC riders.” 
    •  Tax benefits of critical  illness insurance: CI insurance is an  increasingly popular, affordable means of protecting oneself from major  conditions (such as cancer or dementia) that may lead to the need for long-term  care. "The premiums are not currently tax-deductible for an individual buying  coverage; but the benefits are received tax-free," says Dehn. 
    •  Tax benefits of a reverse  mortgage: Available to homeowners 62 or older, reverse  mortgages are special mortgage loans insured by the Federal Housing  Administration. They do not become due for as long as the homeowner resides in  their primary residence. Uses are varied and include paying for long-term care  if and when needed. “Reverse mortgages are designed with the needs of seniors  in mind,” says Josh Stephens, another colleague of O'Neill. Stephens is President of Reverse Mortgage Direct, an  affiliate of LTCFP. “Proceeds are tax-free, and getting a reverse mortgage does  not generally affect one’s  Social Security, Medicare or pension benefits.”

Organizations,  like individuals, may also benefit from LTC tax incentives. “Premiums can be  100% tax-deductible to a business,” says Dehn. “Premiums are not considered  income to the employee, and when benefits are received, they’re generally  tax-free.”

LTC Financial Partners  does not offer tax advice but teams with accountants and other tax experts -- as well as employee benefits and human resources  professionals -- to help their clients get all the deductions or other  benefits available to them.

Information is available  from O'Neill at pat.oneill@ltcfp.net, http://PatONeill.ltcfp.com or 703-534-3255.

Patricia O'Neill is a leading long-term care solutions agent in VA, serving consumers as well as organizations. “We’re glad to help individuals or employers learn the type of protection that's best for their situation,” O'Neill says.

In California the company is known as LTC Partners & Insurance Services; in other states, as LTC Financial Partners. The corporate website: http://www.ltcfp.com.

# # #