TOPEKA, KAN. (RFD NEWS) — For many farm families, the land represents far more than a financial asset—it’s a legacy meant to be passed down through generations. But beyond tax challenges and market volatility, rising long-term healthcare costs are emerging as a growing threat to that transition.
Farm legal expert Roger McEowen, with Kansas’ Washburn School of Law, joined us on Monday’s Market Day Report to break down the legal and financial implications for producers.
In his interview with RFD NEWS, McEowen says the cost of long-term care continues to climb, putting significant pressure on farm families who may already be operating on tight margins. Without proper planning, those expenses can quickly erode assets intended to remain within the family.
He emphasized that a “wait and see” approach is often the most expensive mistake producers can make. Delaying estate and healthcare planning can limit available options and increase the likelihood that land or other assets may need to be sold to cover care costs.
A key factor in planning, McEowen noted, is Medicaid’s five-year look-back rule. This provision reviews asset transfers made within five years of applying for benefits, meaning last-minute decisions can trigger penalties and delay eligibility. He also pointed to tools like the Medicaid Asset Protection Trust, which can help shield assets while allowing producers to maintain a level of control over their operation. However, he stressed that these strategies require careful, early implementation to be effective.
The bottom line? Proactive planning is essential. Farmers who work with legal and financial professionals well in advance are in a much stronger position to protect both their operation and their family’s future.
MORE: Preserving the Family Legacy: Long-Term Care Planning for Farmers and Ranchers
