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!
- A Party to Thank our “Peace of Mind” Program Members
Gilfix & La Poll associates recently hosted a thank-you party in Palo Alto for members of our very popular trust maintenance program that we call "Peace of Mind." Several hundred of our clients are members of the program, which makes it easy for them to stay in touch with us, to attend free seminars (and […]
- Life Settlement Companies Allow Policyholders to Fund Retirement Using Life Insurance
The growing life settlement industry offers to buy life insurance policies and continue to pay the premiums in full, in order to help clients cover the cost of long-term care. "Many people are overwhelmed by long-term care costs, which are not covered by typical health insurance plans," said Michael Gilfix, an elder law attorney in […]
- Michael and Mark Gilfix Appear on NBC Bay Area and KTVU Fox Television Programs
Michael Gilfix and Mark Gilfix recently appeared together on NBC Bay Area's “Asian Pacific America with Robert Handa.” The episode focused on families in Asian communities with special needs, particularly those with autistic children. They discussed the importance of Special Needs Trusts and their critical role in structuring an effective estate plan. Mark acknowledged the […]
- Mark Gilfix discusses his background, San Francisco and special needs families in 7×7 interview
The leading online source for information about lifestyles in San Francisco, 7x7.com, interviewed attorney Mark Gerson Gilfix on April 6 to ask him about his views on life in the Bay Area, his professional background, and his work as an advocate and planner for autistic and special needs children. The latter issue is a key […]
- 11th Annual Special Needs Trust Seminar presented by Gilfix & La Poll Associates
On April 9, 2015, Gilfix & La Poll Associates will present its 11th Annual Special Needs Trust Seminar, an event designed for the family members of special needs individuals. A special needs trust can provide lifelong financial security for a special needs individual without disturbing eligibility for public benefits. As a vital supplement to public […]
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