Adult Children Caring for Elderly Parents Need Financial Guidance
Palo Alto, CA (Law Firm Newswire) March 28, 2013 – Average life expectancies in the U.S. rose in 2011, according to the National Center for Health Statistics.
Women's life expectancy is now 81.1 years, and men's expectancy is 76.3. That is a shift from 1975, when women had a life expectancy of 76.6 years and men had an expectancy of 68.8 years.
While most people are happy to know they will potentially live longer, their savings may not be prepared. Financial experts are concerned that there is a growing cohort of elderly people without enough money to support their needs. What will happen when their savings run out?
"We are seeing more clients who are concerned that their parents will need substantial financial support for some time," commented Palo Alto estate planning attorney Michael Gilfix. "They need to put a structure into place now for when it is needed."
A survey run in September 2012 by Merrill Lynch found that 47 percent of 35 to 50-year-olds admit that they have a high level of concern that they will soon be caring for an elderly parent, up from 32 percent in April 2010.
For individuals who have the funds to do so, "paying up" or transferring wealth to aging parents can be a way to help out. The most common ways to pay up include annual gifts; an annual gift of as much as $14,000 can be given tax-exempt to an individual. A couple can pool resources and make a joint gift of as much as $28,000 to each of their parents. The annual gift can be helpful for elders who need funds but want to retain some independence about where that cash goes.
However, that annual gift may make the parents ineligible for some government benefits, such as Medicaid and Supplemental Security Income. An individual can have no more than $2,000 in assets to qualify for those programs. If someone is gifted with $14,000, they will need to spend $12,000 of it before applying for government aid.
Adults who are concerned that they may be caring for elderly relatives soon, or who are already caring for them, may wish to speak with an elder law or estate planning attorney to explore what structures work best for them.
To learn more, visit Gilfix & La Poll Associates LLP at http://www.gilfix.com/.
Gilfix & La Poll Associates LLP
2300 Geng Rd., Suite 200
Palo Alto, CA 94303
Telephone: (650) 493-8070
Facebook: Like Us!
- How fear of death can present a hurdle to retirement planning
A new study has found that many people fail to make necessary decisions about the future because they are too scared to think about death. According to researchers from Boston College in Massachusetts, fear of death causes individuals to avoid preparing financially for old age. The anxiety can affect choices about managing savings for retirement, […]
- The difference between conservatorship and guardianship in California
Every individual hopes to live an independent life in which they are able manage their own affairs. However, mental or physical incapacity may leave a person unable to make informed decisions for themselves. In such cases, conservatorship and guardianship are legal tools that can be used to help protect an adult or child’s wellbeing. Both […]
- Choosing Wisely: avoiding bad care and maximizing the chance of getting good care
By Myra Gerson Gilfix The Choosing Wisely campaign, an initiative by the American Board of Internal Medicine Foundation in partnership with Consumer Reports (begun in 2012), is an attempt to alert both doctors and patients to problematic and commonly overused medical tests, procedures and treatments. From their website: “In 2012 the ABIM Foundation launched Choosing Wisely® with a […]
- Gilfix & La Poll attorneys speak at NAELA Summit
Attorneys Michael Gilfix and Mark R. Gilfix of Gilfix & La Poll Associates appeared as featured speakers at two sessions during the 2016 National Academy of Elder Law Attorneys Summit in Newport Beach, California, on January 28 and 29. Michael Gilfix is one of NAELA’s original founding members. They addressed audiences of more than 100 […]
- How an IRA Trust can help avert disaster
By Attorney Elijah Keyes A father designated his son and daughter as the beneficiaries of his large retirement account. The daughter’s husband was physically abusive and the couple had been considering divorce. The father was adamant that his son-in-law receive nothing from his estate. After a very healthy life, the daughter was diagnosed with stage […]
See other news sources publishing this article. BETA | Tags: palo alto elder law attorney, palo alto elder law lawyer, palo alto estate planning attorney, palo alto estate planning lawyer, palo alto estate tax lawyer, palo alto gift tax attorney, Palo alto gift tax lawyer