Tips on Finance

We compiled these valuable tips based on podcast interviews and thorough research. The elder care community greatly benefits from such collaborative efforts. Here are some of the key takeaway tips:  

• Know (if any) all the source of income of your aging parent such social security, disability, pension, 401k or equivalent, Roth or traditional IRA, annuity, deferred compensation, bank accounts, etc.
• A good approach to financial management involves seeking advice from a combination of professionals, including your tax accountant, attorney, and financial advisor. 
• If your elder parent possess assets such as a house, an income, pension, savings, or retirement accounts, establishing a trust is advisable. Doing so helps them to avoid Medicaid spend-down and the risk of losing their hard-earned savings.  Find out if they have any debts as well. 
• Rather than opting for a reverse mortgage to cover care expenses, consider taking out a home equity loan. This approach could potentially save you a significant amount. 
• Capital gains on the sale of a property in an estate are calculated based on the period between the date of death and the date of sale. The shorter this duration, the potentially lower the capital gains tax liability (if any). It’s essential to consult with a financial advisor or tax professional to ensure accurate calculations and compliance with relevant tax laws.