How Strategic LTC Planning Provided Tax-Efficient Liquidity and Preserved a Legacy
Long-term care (LTC) planning is often viewed through a financial lens—calculating costs, projecting needs, and assessing funding strategies. But the most effective plans go beyond the numbers, addressing a client’s priorities around control, flexibility, and legacy preservation.
At Collaborative Insurance Solutions (CIS), we specialize in designing custom, tax-efficient LTC solutions that fit seamlessly into broader financial plans. This month, we’re highlighting a case where a thoughtful, strategic approach allowed one client to prepare for future care needs while protecting her estate.
Why LTC Planning Requires More Than Just the Math
For many, long-term care planning is about more than covering potential expenses—it’s about having options and ensuring financial security without unnecessary stress. Yet, these conversations often don’t happen until the need for care is imminent, limiting available choices and placing strain on families.
Traditional LTC policies can be valuable but don’t always provide the flexibility or efficiency clients want. A more strategic approach incorporates tax considerations, estate planning objectives, and asset positioning to create a solution that aligns with a client’s broader goals — while also addressing the psychological and emotional impact of future care decisions.
“Clients who have a plan in place are more likely to seek care earlier, reducing stress on their families and ensuring they have access to the best possible services,” says Austin Hultquist, CLTC, RICP. “It’s not just about funding care—it’s about removing uncertainty and giving clients the ability to make decisions on their own terms.”
Case Study: A Smarter Approach to LTC Planning
We recently worked with Sarah. She wanted to ensure she had resources for potential care needs but didn’t want to lock funds into a rigid structure. She also wanted to avoid unnecessary tax burdens and ensure any unused benefits would pass efficiently to her heirs.
Instead of relying on a traditional LTC policy, we structured a life insurance strategy with an LTC rider, offering:
- Tax-efficient liquidity for care expenses.
- Estate protection if LTC benefits went unused.
- Strategic asset repositioning to minimize tax burdens.
This approach allowed her to prepare for care while maintaining financial flexibility—a key factor in designing a plan that truly worked for her.
Redefining the LTC Planning Conversation
Long-term care planning isn’t just about preparing for a potential need—it’s about designing a strategy that protects financial security without limiting future options. The right approach should ensure access to care while preserving assets, minimizing tax burdens, and aligning with a broader estate plan.
Far too often, these conversations focus solely on costs and coverage, when in reality, the most effective solutions come from thinking bigger—considering control, flexibility, and legacy, not just expenses.
By leveraging innovative strategies like life insurance with LTC benefits, clients can prepare for the unknown while maintaining financial confidence. Whether care is needed or not, their plan works for them—not against them.
LTC planning shouldn’t be a last-minute decision—it should be an intentional, strategic part of a long-term financial plan.
Want to explore what this could look like? Contact CIS today.
Have a challenge you need to solve? Let’s start a conversation and craft the right plan together.
About the Author: Austin Hultquist, CLTC, RICP, is a Senior Insurance Strategist with a passion for helping individuals and businesses navigate complex insurance needs. With years of experience working alongside financial advisors and attorneys, Austin specializes in crafting customized strategies that empower clients to achieve their goals.
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Collaborative Insurance Solutions does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and should not be relied on for tax, legal, or accounting guidance. Please consult your own tax, legal, and accounting advisors before engaging in any transaction.
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