Continue to Self-Insure Nursing costs continue to rise. Many financial advisors remind clients to be sure and remember capital gains taxation on appreciated assets.
Capital gains are on virtually all items held for appreciation purposes by seniors.
They include land, rental property, stock, bonds and many other appreciated assets. The government currently pays about half of all nursing home costs, but it's likely that individuals will have to pick up a bigger share. A recent study found that about one in four people admitted to nursing homes stay long enough to spend down to Medicaid levels. But Medicaid can't go on this way. The cost of care could destroy state budgets unless new sources of financing can be found.