Clients sometimes ask about the wisdom of giving their home to their children, usually in order to avoid probate and “simplify” things after the parent’s demise. However, this is not usually the best plan and doing so can often result in unintended tax consequences for the recipient child.  This is especially so if the parent’s motivation is driven by a desire to avoid a Medi-Cal recovery claim after the parent’s passing.  In most situation,  there are usually better options to accomplish the parent’s goals. See the following article which appeared in the Castro Valley Forum and the San Leandro Times, which addresses this question in a Q&A format.

We spend our lives making plans and preparing for future events. From the beginning we plan and work towards education, a career, marriage and a family. We work hard and save, invest and build our assets. We insure to protect our home, automobiles, health and medical needs. 

Retirement age comes and our plan is finally in place. Finances and time have come together to allow us to enjoy the elder years of life. This is where the planning ends. But life does not end at retirement. There is a portion of life that the majority of us will live through after the retirement years called “eldercare.”

 Very few of us plan for this part of our life, but yet it is as important if not more important to plan for it. If we don’t, we are leaving our last years in someone else’s hands. As much as children love us and mean to do right by us, they cannot possibly know what we want if they are not told. 

Ruby, age 80, lost her husband. She had cared for him at home after his stroke. Understandably, she felt lost and depressed after his death. An inner ear infection caused Ruby to lose her balance and fall, breaking her hip. While she was in the hospital recuperating from surgery, Ruby’s children were deciding her future. 

Concerned for her health and safety they moved some of her belongings to an assisted care facility. Upon Ruby’s release from the hospital she was taken to her new home at the facility. Between pain medication and the unfamiliar surroundings, Ruby never was herself again. She spent her last days asking what had happened to her home and belongings. Though her children had her best interest at heart, they did not know how Ruby wanted to spend her elder days.

An article on the AARP website entitled, ” Are Americans Talking With Their Parents About Independent Livng“, revealed that “Most boomer women have had conversations with their parents about their ability to live independently as they ge tolder, but less than half have actually begun planning for care their parents might need.”  Without talking this over,  it can be difficult to know if parents really need, or want, help from their children.” 

Children and parents should talk about all these things. 

What do you want your children, or friends to do on your behalf? When it comes time for them to help, you may not be physically or mentally able to execute your wishes. This is where your long term care plan comes into effect. You need to be the responsible person for your own personal care in the future. 

The time to start planning is now.  Don’t wait until the choice is no longer yours!

In our country we have a tradition of honoring those men and women who served in the military.  That tradition extends to offering very valuable benefits to Veterans and their families. Unfortunately, VETS sometimes are not aware of all of those benefits.  One of the benefits most often overlooked is something called a Veteran’s Pension.  It is available to a Veteran or surviving spouse whose service included at least one day during a time of war. However, that service need not have been overseas, and the VET need not have been injured in comabt.  Many frail senior VETS can qualify for this monthly benefit, especially if they have ongoing need for care.  For example:  if the VET needs care at home, or must reside in an Assisted Living Facility due to his/her need for assistance, it is very likely that the VET might be eligible for this pension, sometimes called an “Improved VA Pension” or an “Aid & Attendance Pension”.  The benefit can be as much as $1,949 per month for a VET and spouse.  There is an asset tests and an income test, but a VET in need may be abl to take planning steps to accelereate eligibility.  Our firm may be able to assist in this effort.  Check out our Video, where Attorney Gene Osofsky touches upon this in greater depth.

Also, check out this month’s article in AARP Magazine which briefly discusses 8 benefits available to Veterans.

As promised in our earlier Blog, here’s more information on the recent health care reform legislation signed into law by President Barack Obama on March 23, 2010.  Notice, in particular,  the provisions for reducing the cost of prescription drugs for seniors by reducing the impact of the “doughnut hole” and the “CLASS Act” which will assist with the cost of long term care. 

We hope to bring you even more as the coming weeks unfold.  Happy reading and stay tuned.

The days are getting shorter, the weather cooler, and the skeletal arms of trees reach for the skies as their colorful apparel rests on the ground. All of these signs point to just one thing… No, not the estate tax repeal (although that does loom close); I’m referring, of course, to the upcoming holiday season—a time to slow down, spend time with family, and appreciate the blessings in our lives.

During this time of celebration and Thanksgiving, our office would like to offer our sincere thanks to you, our clients and readers, for the time you have spent with us, the trust you have put in us, and the role you have let us play in your lives. We hope we may continue to serve you in the coming year.

Happy Thanksgiving to all of our readers, and may you enjoy a wonderful holiday season.