How to Save the Family Farm from Nursing Home Costs

by | Nov 29, 2022 | Elder Care Advising, Family Farm

Family farming revolves around the land. Farmland is often passed down from generation to generation. The assets, skills, and work ethic that have been poured into the farm are the family’s legacy. The act of passing on the land to one’s children is a rite of passage in the life of every farmer. Nevertheless, there is an economic factor that threatens this rite of passage. It is the unknown factors of aging and the rising costs of healthcare.

Nursing Home Costs Threaten the Family Farm

Currently, the average cost of nursing home care is $84,000 per year in Central Illinois. That is more than the national household annual income, and that’s in addition to the regular household and farm expenses that families already pay. In farming, selling the land may seem like the only logical step to pay for needed care, but many times it is not the best solution.

We’ve all heard stories and seen Hallmark movies about someone losing their farm and being forced to sell. For those of us who aren’t farmers, it appears like a sensible and beneficial decision. However, for farmers it can be heartbreaking to give up something that has been in the family for generations and was intended to be passed down to future generations. Many are desperate to save the family farm.

Agriculture is a risky business, and there are many factors that can affect the future of crops and livestock. Because of this, farmers buy crop insurance to mitigate the risk of mother nature not cooperating. Estate planning is an excellent way to mitigate risk and protect the family farm from nursing home costs. At Edwards Group, we use an estate planning tool called a “Nest Egg Trust” to help our clients mitigate future risks and protect the family farm.

family farm

A Nest Egg Trust Can Save the Family Farm

Many families who want to protect assets and plan ahead for future aging and care are deciding that a Nest Egg trust is the right tool for them. So, what is a Nest Egg trust? A Nest Egg trust is a specific type of trust that protects your hard-earned savings and/or the family farm, while also helping you qualify for care benefits if you need care at home, in assisted living, or in a nursing home.

A trust is simply a set of instructions about how you want your assets to be handled in the future. There are many different types of trusts, and the type of trust used depends on a person’s goals and situation. Some people think of trusts as only for the wealthy, but that’s not true. A Nest Egg trust is designed for regular, hard-working folks who have saved for retirement and now their savings is at risk.

A Nest Egg trust is an estate planning tool every farmer and their family should consider. This particular type of trust can save the family farm, and protect your family’s legacy from nursing home costs, creditors, and potential lawsuits. The key component of the Nest Egg trust is asset protection that keeps property safe from outside threats. Every year farmers plant seeds they plan to harvest in the fall. A Nest Egg trust is another type of “planting” ahead for the future protection of your life’s work that will be harvested in the next generation. Every day is a good day to plan for your family’s future and it is never too late to do some type of planning. The best time to plan to protect the family farm against crisis is today.

Call Edwards Group for Help

We encourage you to plan this winter season and discuss your unique family situation with the professionals at Edwards Group. Call to make an appointment at 217-726-9200.

It is our privilege to help families with all their estate planning needs while protecting their assets and legacy for the next generation!