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Ask Your Parents These Three Financial Questions

Three estate planning questions to ask your parents right now.

 

Caring for aging parents poses many questions, some of which you want to get out of the way early on. A recent article in The Oprah Magazine,titled“Sanity-Saving Secrets For Caring For Your Aging Parents,” suggests three questions to ask your parents right now.

 

1. 1.      Do you have a living will? There are about 72% of seniors who already have advance directives specifying end-of-life medical wishes, according to a recent study funded by the National Institute on Aging. That’s terrific, but make sure your parents are in that group. As long as you’re on the subject, see if their documents have been revised in the last five years and that you know its location.

 

1. 2.      Where's the money? Ok, maybe you can phrase this question a bit more gently. On the other hand, start with your parents' latest tax return to get an overview of their assets. Make a list of all of their account numbers. This should include savings and checking accounts, credit cards, and investments such as 401(k)s, brokerage accounts, and insurance policies. In addition, compile a list of the phone numbers for the customer service department at each financial institution or investment company. If they conduct their banking online, you also need to find out their passwords (or, at a minimum, make sure they add this info to a secure document you can access if needed).

 

1. 3.      Who are your advisers? You should make sure to get the names and contact information of the professionals on whom your parents rely.

 

The list of advisors can include any and all of the following:

• An accountant or CPA;
• A spiritual adviser;
• A primary care physician; and
• A qualified estate planning attorney.

 

There may be other medical specialists, such as an internist or cardiologist. Many seniors visit and are under the care of several physicians, particularly when they are managing several chronic conditions.

 

You'll need to coordinate all of the players on their legal, financial and healthcare team—physical therapists, technicians, and aides.

 

Contact them when you need input and support.

 For further information contact an experienced estate planning attorney, Robert A. Gordon of Redkey Gordon Law Corp.

Reference: Huffington Post, The Oprah Magazine (December 19, 2014) “Sanity-Saving Secrets For Caring For Your Aging Parents”

Where to Find More Money for Your Aging Parents

We asked experts to let us in on a few resources most people overlook.

 

Need more cash to help care for mom and dad? A recent Oprah Magazine article, titled “Sanity-Saving Secrets For Caring For Your Aging Parents,” has some ideas where to look for funds to support your parents in retirement.

 

Here are some of those ideas from the original article:

 

• Survivor Benefits. If your mother or father has passed away, your surviving parent may be eligible to receive survivor benefits from the Social Security Administration. For instance, a widow age 65 or older could see about $15,000 annually, if she takes advantage of this potential benefit. 

 

• Life Insurance Settlement. This isn’t always a great idea. Why? Liquidating a life insurance policy can many times produce significantly less money than the death benefit, which can still be a great deal of money.

 

• Prescription Discounts, Federal Food Programs, Tax Breaks. BenefitsCheckup.org, created by the National Council on Aging, shows you how to find sources of assistance for your parents.

 

• The Family House. We’ve talked about this one before. A reverse mortgage gives those age 62 and older the ability to convert a portion of their home’s equity into cash without having to sell it. Talk to your estate planning attorney before doing this—appraisal fees, a credit report, title insurance and more could add up to thousands of dollars.

 

• Veterans' Benefits. Most honorably discharged veterans are eligible for VA medical benefits, but there is a financial cut-off and some veterans with a high income or net worth are not eligible.

 

These are just a few of the things to look at when considering ways to produce more cash for retirement. It’s best to speak with a qualified estate planning attorney to see what’s best for you and the specific situation of your parents. Contact Robert A. Gordon, an experienced estate planning attorney, of Redkey Gordon Law Corp for additional information.

 

Reference: Huffington Post, The Oprah Magazine (December 19, 2014) “Sanity-Saving Secrets For Caring For Your Aging Parents”

Got Medicaid? First, You Need to Get Prepared

Here are some "Get's" that will help you prepare for the Medicaid application process.

 

Get going five years before you think you need to. Medicaid has a five-year look back to all your parents' financial dealings. Which means transactions conducted during that time may be counted in determining their program eligibility. With this requirement, it’s good to have your parents' banks' names and numbers accessible. Regulators are looking at two things: if you're hiding any money and if you've given any away.

 

Also, if one or both of your parents still live in the family home and you’d like to keep it, you should try to transfer ownership or set up a trust at least five years before they apply for Medicaid. Although there are some exceptions, typically if you don’t address this issue, you will be forced to sell the home.

 

Get a power of attorney. While you might never need this to obtain Medicaid approval for your parents, getting your parents to each sign a power of attorney is a good move. There will be many times when you try to act on your parent’s behalf that people will simply say, "I'll need your POA to help you." Believe it or not, even your parents' cable provider won't talk to you unless you have a power of attorney!

 

Get ready for the paperwork. Start a filing system early, because once you send in that initial application, there will be a boatload of questions that will need answering. And with each request, you'll need to include your case number. You should also have easy access (or memorize your parents’ dates of birth and Social Security numbers).

 

Get some friends. Although you already are, be pleasant and friendly with caseworkers, bank employees, eldercare counselors, and others that assist you with this process. Remember, the old adage, "You can catch more flies with honey than with vinegar." People are more apt to help you with questions or problems if you’re nice versus being a brute.

 

Get back to your life. When you receive the approval for the Medicaid application, breathe easy. Once approved, there’s an annual "redetermination" process to show that your parents haven't come into wealth. Absent such a windfall, however, the heavy lifting is all over.

 Get additional information by contacting your local Amador County attorneys at Redkey Gordon Law Corp.

Reference: Huffington Post, The Oprah Magazine (December 19, 2014) “Sanity-Saving Secrets For Caring For Your Aging Parents”