January 2022
Many individuals and families worry about paying for long-term care. Nearly everyone understands that paying for a nursing home stay or an assisted living facility can quickly add up to tens of thousands of dollars or more. A solid estate plan considers the available options for paying for a stay in a long-term care institution. The benefits of long-term care insurance An article in Kiplinger states that with so many unknowns and variables the decision to buy long-term care insurance remains a difficult one for families. Still, insurance can provide protection from a worst-case scenario, preserve an estate’s assets and provide peace of mind. With several insurers offering products, families can often tailor a policy to their specific needs. This could involve features that cover a set period of years, that have inflation protections built-in and that cover both spouses at a reduced premium. When a person buys long-term care insurance impacts the value of a policy. Those who buy at a young age, often pay a lower premium but may have to pay for many years before using the policy. Those who buy at an advanced age likely pay a higher premium but might only pay that for a few years. The disadvantages of an insurance plan As with any insurance product, a person who buys long-term care insurance might never use the benefits. They could pay premiums for decades and never go into a long-term care facility. Insurers can also increase the premium rate under certain circumstances, which could provide an unexpected burden on a family’s budget. In the end, an estate plan should look over the pros and cons of long-term care insurance.
Legal guardians and parents of a special needs child want to take care of their loved ones after they die. While a special needs trust helps them accomplish that goal, guardians and parents must understand how to make the most of the estate planning tool. With insights from Mito Action, parents and guardians lay the groundwork for establishing a trust for their disabled child. Being well-informed on all aspects of estate planning helps parties resolve their fears and concerns. The two special needs trusts Parents and legal guardians have two trust options for their special needs child: first-party trusts and third-party trusts. With a first-party trust, the disabled person has her or his funds or comes into an inheritance and wants to meet public benefits requirements. For third-party trusts, others fund the trust. Medicaid and Social Security regulations and policies govern first-party special needs trusts, while third-party trusts have fewer stipulations. Rules regarding first-party trusts involve specific individuals who may establish a trust. Also, parties may only establish and fund a first-party trust until the disabled person turns 65. One advantage of the trust option is that disabled persons still qualify for public benefits. The importance of special needs trusts One essential reason to understand and use special needs trusts is that several public benefits programs have asset tests. For instance, Medicaid and Supplemental Security Income have an asset limit of $2,000. If a person has over $2,000 in assets, she or he cannot receive public benefits. Special needs children and adults deserve to live life with financial peace of mind. The right estate planning tools and information help them and their parents or guardians to do just that.
Though your parents may not want to admit it, older adults are prime targets for scammers. This is because con artists believe the aging to be more trusting than other people. In addition, people running scams think seniors have large retirement funds they can tap into. While this is not always the case, cons are hoping to get lucky. Be aware of scammer red flags Making your aging loved ones aware of the potential scams they could encounter helps keep their bank accounts intact. H oaxes targeted at seniors include requests to wire money in order to claim a prize, calls from government agencies and emergency calls or emails from a grandchild in dire need of quick cash. Let your family members know that they should check with the person or official organization before sending funds. Avoid unsolicited calls Many frauds on the aging population start via telephone calls. To help your family decrease the likelihood of becoming victims of such a deception, you can do several things to keep them from receiving those calls. First, you can place your parents’ names on the national do not call registry . In addition, this will reduce the number of telemarketing calls they receive. Next, check with the phone service provider to learn how to block anonymous calls to the landline. Most cellular carriers also allow you to thwart spam calls for a nominal fee. Lastly, arm your folks with a plan for refusing the request of hoaxers. Keeping your aging family aware of the risks of scammers can go a long way to help them fend off such perils.
