November 2020
Whether attempting to choose a long-term care facility for a close friend or loved one, or selecting a new home for yourself, there are some important factors to consider. Long-term care facilities offer medical supervision and assistance to those who are unable to live completely independently. Care homes differ in the amount of assistance they offer. While some provide help with basic living tasks, such as bathing, dressing and eating, other homes simply have medical staff available in case you need them. Considering the factors According to Medicare.gov, there are a number of items to look at before choosing the best assisted living facility for you. These include the following: What type of medical care is available? What types of activities does the home offer to promote socialization? Are family members welcome at any time? Is the facility in a good area, close to friends and family? Does the facility accept your insurance? What types of reviews does the home have? You should not lose your right to make decisions regarding your care. However, there may be directives in place allowing others to make decisions on your behalf should you become unable to make those choices. Ensuring safety and well-being You may also want to research whether the care facility has accreditations or certifications , such as the Joint Commission’s Long Term Care Accreditation Program. These programs gain an in-depth look at the standards and ethics used to run the facility. According to the Joint Commission, this includes topics such as infection prevention and control, emergency management, environment of care, human resources, safety precautions, medication management and respectful treatment of residents.
Those engaged in the estate planning process in Washington may have learned that there are a number of strategies one can employ to avoid liabilities against their estates (thus preserving more assets to pass on to their beneficiaries). Yet many may believe that there is no way to avoid estate taxes. That may not necessarily be true. There are measures to place to limit (or potentially even avoid) one estate tax liability that one can easily incorporate into their estate plans . Federal estate tax portability The federal government sets an estate tax exemption threshold annually. According to information shared by Forbes Magazine , the threshold for 2020 is $11.58 million per person. An additional benefit is also available known as estate tax portability. The unlimited marital deduction allows spouses to pass money between each other without it being subject to tax. Thus, one can leave their assets to their spouse upon their deaths and preserve their entire estate tax exemption amount. Portability then allows their surviving spouse to claim that unused exemption in combination with their own exemption. Per the Internal Revenue Service , a surviving spouse can take advantage of this benefit by filing an estate tax return claiming portability within nine months of their spouse’s death. Washington’s estate tax guidelines The state of Washington also imposes a local estate tax on its residents. It also has an estate tax exemption, which is $2.193 million. This means that if the total taxable value of one’s estate comes in below that amount, it will not be subject to Washington’s estate tax. Unfortunately, Washington state does not extend the benefit of portability to local residents. However, some estate planning tools can be used to take advantage of both spouses’ $2.139 million exemption.
If you are planning your estate, you probably have some options for transferring property into a trust. Of course, you may not feel comfortable completely surrendering ownership of your assets. Creating a revocable trust may be the solution . You can likely form a revocable trust at any point during your life. Before doing so, though, you should carefully consider the requirements, advantages and drawbacks of this type of trust. Basic parameters Often, forming a revocable trust is straightforward. These trusts usually have three basic parameters: You transfer ownership of assets to the trust. You act as the trustee, at least initially. You retain the flexibility to take property out of the trust. During your lifetime, you can likely designate a different trustee to oversee your revocable trust. Also, when you die, the revocable trust is likely to become an irrevocable one. In simple terms, irrevocable trusts are not modifiable like revocable trusts. No probate Avoiding the potentially long and burdensome probate process is often the clearest benefit of forming a revocable trust. Put simply, any of your assets that are inside the revocable trust at the time of your death are likely off limits to the probate court. Creditor actions While some types of trusts protect your assets from creditors, revocable ones usually do not. That is, your creditors may still go after your assets inside the revocable trust. Doing so, however, typically requires some additional work. If you are looking to safeguard your assets from the actions of creditors, a revocable trust may not be the way to go. Still, if creditors are not a concern, this type of trust may be a key part of your overall estate plan.
