Friday, March 8, 2013

When Roles Reverse… The Adult Child Becomes The Parent!



It is important to understand family dynamics when it becomes time for adult children to have to help make decisions for their parents. Thinking about long term care and placement in an assisted living or skilled nursing facility is very difficult for families to handle.  The family needs to talk with an experienced elder law attorney centered on what the parent(s) wishes to do versus what is in the best interest of the senior loved one.  Children are generally uncomfortable about moving a parent out of their home to a facility against they want to remain at home.  This discussion can start with looking at in home care aides to start the LifeCARE Cycle. Sometimes parents become rebellious and do not allow anyone in the home to help them.  If the children do not live nearby or have to work a full time job, managing a rebellious parent long distance becomes a difficult family task.

Many children are understandably uncomfortable in becoming the parent, especially if the parent does not want to accept help that is clearly needed.  Independence is a hard thing to let go of.  But there is a time when adult children will need to step in to the decision making role, just as parents do with small children. Your decision to step in can be very difficult because in many situations the decline is gradual.   When is the right time to step in?

Too often the deterioration of your parent’s ability to do the every day things to care for themselves will happen gradually over time. Your parent(s) may become experts at hiding these problems, so it is important for you to be on guard for certain warning signs:
  • Incapable to properly pay bills and manage their finances
  • Incapable to handle their needed nourishment, clothing or shelter
  • Incapable to take care of one’s physical health
Early intervention on your part can prevent serious problems from occurring.  When you visit your parent(s), look for the following warning signs of a possible care crisis:
  • no food in the cupboards,
  • stacks of unopened mail,
  • evidence of not bathing
  • other signs that your parents are no longer able to properly care for themselves.
If they wait for the parents to ask for help, that day will probably never come. They need to have a plan in place sooner than later that will provide for adequate care supervision and financial assistance even if parents feel they need no help. 

LA LAW Center Staff will help you assess your parent’s physical, emotional and financial situation and suggest the best options for your parent’s situation.  This can range from, setting up a Conservatorship, securing Government Benefits to help pay for care, such as Medi-CAL, Medicare, Veterans or Social Security benefits, developing a Life Care Plan or help in choosing In Home Care Givers,  Assisted Living Facility or Nursing Home.

For more information, please go to our website and look around. We try to educate our community and assist them with any elder law needs they may have or fear. Visit our site or call us today to schedule your FREE consultation with one of our experienced elder law attorneys. 

1 (877) 537 - 8283
>>>     www.la-lawcenter.com     <<<

Friday, March 1, 2013

Only Small Change to Estate Tax from "Fiscal Cliff" Compromises

All of the talk in recent months about our nation’s economy and what our government planned to do about this “fiscal cliff,” decisions have been made and now we are left wondering what to make of it all. Most of us, in particular, are wondering what this will be doing to our families and ourselves, not just the country at large.

So far, people have been seeing larger numbers taken out of their paychecks due to the increase of taxes, and a couple other things are bound to change with families and small businesses, but we are happy to note that as part of the tax compromise that was approved, the amount that is exempted from estate taxes will remain the same as it has been for the past two years, although the maximum tax rate will rise by 5 percentage points. Those of us who are seeing an increase in money taken out of our paychecks will have solace knowing that estate tax will not be changed as a result of this deal.

The American Taxpayer Relief Act (http://www.gpo.gov/fdsys/pkg/BILLS-112hr8eas/pdf/BILLS-112hr8eas.pdf), which passed in the House by a vote of 257/167, permanently sets the estate tax exemption at $5 million for an individual and $10 million for a couple. Taking into account the new adjustments to inflation, these exemptions are estimated to rise to about $5.2 million for an individual and $10.24 million for couples. The gift tax and generation-skipping transfer tax exemptions will also remain the same as last year, adjusting for inflation, and the estate tax portability provision remains intact.

Although this is good news for most of us without assets in the millions, for those that exceed these amounts, Congress did change one of the prior rules: the maximum tax rate on inheritances above these levels will increase from 35 percent to 40 percent.

Although the bill's provisions should have taken effect on the first of the year when
President Obama had promised to sign it into law, technically for now the
estate tax has reverted to its 2001 level of a 55 percent tax on inheritances above $1 million.

Also the annual gift tax exemption has been raised to from $13,000 to
$14,000 gift per year per person. However, a person can gift more than this
amount each year by declaring a larger gift as part of their lifetime estate
gift tax exemption (which is set at $5 million with inflation adjustments in
the future) by declaring it on a 709 Gift Tax Return.

For more information about this and other California asset protection or
estate planning questions, call LA LAW Center, LLP for a complementary
consultation at 1.877.537.8283.