A House Divided
One of the biggest issues seniors face as they get older is how to preserve an inheritance for their children. Their biggest fear is spending all of that money on assisted living and/or nursing home care. As each family situation is different, so is each solution. Perhaps you can learn something from the experience of one of my clients.

Pulling Back The Curtain On Reverse Mortgages
Last week's article on reverse mortgages generated a very interesting response from one reader. Unfortunately, due to his choice of vocabulary, I can't print his response here. Suffice it to say that this advisor doesn't want me saying anything negative about his chief source of revenue. This week I'd like to pull back the curtain on the real reason reverse mortgages have become so heavily marketed and what you need to do as a consumer to protect yourself.

Should Seniors Use Reverse Mortgages?
Some of the most popular products being pitched to seniors today are reverse mortgages. Everywhere you turn there are free seminars, free reports and free DVDs, all touting the amazing benefits these loans offer. Are reverse mortgages the answer to seniors prayers, or are they too good to be true?

Do You Owe Taxes On That Gift?
As a Certified Financial Planner, I'm often asked about issues regarding inheritance, gifting and the resulting taxes. Here's a classic example of just how complicated these situations can be, using a question from a reader in Michigan we'll call Bob.

Tune Up Your Finances
With the beginning of a new year, it seems everywhere you turn you hear something about self-improvement. There are plans for weight loss, exercise regimens, quitting smoking, going green and more. What about your finances? Even if you think your finances are in ‘good shape’, everyone could use a little ‘tune up’ to make sure everything is running smoothly. And it’s not as hard to do as you think. There are some very simple steps you can take that can make a world of difference.

Protect the Ones You Love
Alzheimer’s. Stroke. Heart Attack. They are words we all dread to hear, especially when they occur to a loved one. The emotional strain is tremendous. But it can be compounded if the loved one didn’t take steps in advance to authorize someone to manage his or her assets. Regardless of your age, it’s imperative that you have the proper documents in place. Read on to find out why.
 

Protecting Your Equity from Lawsuits
In today’s lawsuit-happy society, investors are anxious to protect their assets from litigation. As a result, there are many professionals in the business of helping investors meet this need. But consumers need to be very careful about the advice they receive and the path they choose.
 

When A Will Won’t Do
A Last Will and Testament is the most basic of estate planning documents, but also one that is often misunderstood. Many think that if they have a Will they don’t have anything to worry about—everything will go to the persons they specify. That’s not true, though, and it’s important you understand why a Will sometimes Won’t.
 

Tough Love: Children Protecting An Ailing Parent
Anyone with children understands the phrase “tough love”. Doing what is in the best interest of our children isn’t always something they agree with or even understand. But love really becomes tough when the parent/child roles are reversed as our parents become elderly. Knowing how to respect their freedom, maintain their dignity and yet protect them from themselves is a tricky balancing act at best. At worst, it can become a major confrontation, involving heated arguments, broken relationships and legal action.
 

Reader Question: A Trust For Grandchildren
Imagine what it would be like if each one of your grandchildren earned a scholarship to pay their college costs. Wouldn’t that be great? In a sense they can. Not only that, they could receive grants to help them purchase their first home, start a business and even provide additional retirement funds! Read on to find out how.

Are Your Company Retirement Benefits In Jeopardy?
In years gone by, when someone retired from a large company they didn’t have to worry about losing their retirement benefits. That’s no longer the case. Being faced with ever increasing competition, many large companies are changing their benefit programs. If this hasn’t affected you yet, it soon will. Read on to find out how.

How To Lower The Price Of Gas
Gas prices seem near all-time highs and the summer driving season hasn’t even started yet! A recent email presented a simple solution that will force gas prices back to the $1.25 a gallon range. Read on for details and to learn basic principals that may make investing more profitable.
 

Get FREE Answers To Financial Questions
Sometimes it is the little things in life that really make the difference. That’s especially true then when it comes to dealing with financial matters. Decisions about who to trust, what to invest in, making gifts or the type of insurance to buy all have long-term consequences—and often unintended results. There are many times that a simple answer from a professional would have made all the difference. And now you can get that answer free of charge.
 

Pension Protection Act: It Affects You.
The Pension Protection Act was recently passed by Congress and signed into law. It is “the most sweeping reform of America's pension laws in over 30 years.” Whether you’re retired or still laboring to build your nest egg, the Pension Protection Act (PPA) will affect you. Read on to find out how.
 

When A Will Isn't The Way
Many people have the mistaken impression that their Last Will and Testament determines what happens to their possessions when they die. As John, a reader in Maryville, TN learned, that’s not necessarily true.

Do You Need A Trust Or Foundation?
Trusts and private foundations aren’t just for the rich and famous like Warren Buffet or Bill Gates. Nowadays, even people of modest means are realizing the great benefits trust and foundations can provide. Read on to see if you can, too.
 

Do You Owe Taxes On That Gift?
Many readers of this column take me up on my offer for free financial advice. ‘Mr. K’ from Michigan, like many, wondered about taxes owed on his mother’s house. Chances are you will deal with the same issues.
 

Bridging The Long-Term Care Gap
Providing for adequate health care is one of the top concerns for today’s seniors. And yet, many find themselves coming up short when that need is for long term care. With costs skyrocketing and government purse strings tightening, planning for such care has never been more important. Don’t let long term care costs take you by surprise. Read on to make sure you’re prepared.
 

Don’t Rely On Medicaid For Long-Term Care
Millions of retirees expect to rely on Medicaid to cover the cost of their long-term care needs. If you or your parents have that expectation then you must read this article. You shouldn’t rely on this program and by doing so you may end up becoming dependent on family and friends for care.
 

How Do You Like These Odds?
Are you a gambler? Do you like to play the odds? Here are some real-life odds for you to consider: 90% of people become incompetent before they die! Of course, your spouse might not think you’re of sound mind right now, but that’s beside the point! If you don’t take action, you could needlessly cost your spouse thousands of dollars and countless headaches in order for them to make decisions on your behalf.
 

Don’t Be Left Holding The Bag
Ned almost lost the farm that had been in his family for 8 generations! We’ve all heard that ‘The Devil is in the details.’ It is especially true when it comes to estate planning. Make sure you don’t make the same mistake Ned did.
 

Afraid of Losing Your Home To Medicaid?
Doris from Minnesota is considering transferring her assets to her son so they won’t be lost to Medicaid should she need assisted-living or nursing home care. Is that the right move? If so, what’s the best way to do it? Read on to find out.
 

Clearing Up Estate Document Confusion
Few topics confuse investors more than figuring out what estate-related documents they need. Living Wills, Living Trusts, and Powers of Attorney are just a few of the terms that most find hard to define, let alone understand. But being comfortable with these terms and what each one can do for you is important, and can make the difference between your wishes being followed or creating a nightmare.
 

To Trust Or Not To Trust…That Is The Question!
Living Trusts have become very popular and are being heavily promoted to seniors. Should you Trust or not Trust? That is the question. Read on to learn some simple guidelines that will help you know whether a Living Trust may be right for you and how to go about getting one if needed
 

Will You Lose Your Home To Medicaid?
The largest financial risk that seniors face today is the potential of assisted living and nursing home costs to devour the nest egg that has taken a lifetime to build. Many will end up relying on Medicaid to pay these costs. If that’s the case for you, chances are that Medicaid will come after your home when you die.
 

How To Legally Avoid Taxes On Gifts And Inheritances – Part 2
Last week I explained in theory how you can legally avoid paying taxes on gifts and inheritances. Avoiding taxes on gifts and inheritances is based on cost-basis. To help you apply this to your situation, I want to share some real-life examples of how my clients use these principles to legally avoid paying taxes on gifts and inheritances.
 

How To Avoid Tax On Gifts And Inheritances
Nobody likes to pay taxes. If done incorrectly, though, the way you inherit an asset can result in you needlessly paying tens of thousands of dollars in taxes. Knowing some simple rules will reduce your tax bill and allow you to keep more of what you inherit. And it will also keep you from creating tax headaches for loved ones to whom you wish to gift assets.
 

Beyond the Living Will
Living wills have received a great deal of attention due to the recent Terry Schiavo situation. Because her end-of-life wishes were in dispute, family members battled each other in the courts over her treatment and care. By having a proper Living Will, you can avoid such confusion. But a Living Will doesn’t ensure you have all your bases covered. There are other equally important documents you must have in place.
 

Your Questions Answered – Health Savings Accounts and Powers of Attorney
Q. Jeff, I want to ask your opinion regarding Health Savings Accounts. On April 1st, the company I work for is changing our current Blue Cross health insurance to Guardian Insurance set up as a HRA. I am single and currently have a $500 deductible. Under the HRA, the deductible will be $2,000.

Currently, the premium is split 50/50 between employer and employee. I pay $205.00 per month. Under the HRA it will still be split 50/50, but the employer is going to fund each employee's Personal Medical Fund up to $900. As I understand it, my responsibility will be $1,100 of deductible before any insurance coverage kicks in. We have not been given any rates for the HRA insurance, but I imagine it will be lower than the monthly $205.00.

I am trying to decide if this is a "good" thing to change to or if I should obtain an individual policy of my own. I contacted my insurance agent and was quoted a price of $213.20 per month for similar insurance ($500 deductible).
 

Your Questions Answered - Can You Stretch a 401(k)?
A reader recently asked if his 401(k) could be rolled over, by his beneficiary, to a 'stretch' IRA after his death. Read on to discover an answer that will protect your beneficiaries from tens of thousands of dollars in unnecessary taxes and keep your gift to them alive for generations to come.

Protect Your Beneficiary’s Inheritance
An inheritance is the precious fruit of years of labor. It is an expression of love. Nowadays, more than ever, an inheritance is something that should be protected. All too often, inheritances are squandered or lost because of a lack of planning by those giving it. Read on to discover how to easily change that.

Planning To Make Your Money Last Forever
It’s true that you can’t take it with you, but many are becoming more concerned about what happens to what they leave behind. Thanks to some recent changes in estate laws, strategies that were once only doable by the extremely wealthy are now more accessible by those of more modest means.

When The Battle Begins At Home
I received a heart-wrenching phone call from a young soldier recently. His mother had just died and he was left with the responsibility of settling her estate. He had no idea the difficulties he would encounter—not on the battlefield but here in East Tennessee.

Signed, Sealed, Delivered – It’s Theirs
My last few articles have focused on various end-of-life issues that were made very real to me due my mother-in-law’s recent death. In this article, we’ll discuss the simple steps you can take that will make dividing your personal possessions easier on your family.

Don't Leave Loved Ones In Lurch
Nothing brings home the importance of having our affairs in order than seeing the effects firsthand in your own family. My mother-in-law’s recent death means my family is dealing with the realities of settling her affairs. Her advanced-planning greatly simplified the process. And it will for you, too.

When Friends and Family Want YOUR Money
Few situations have a greater potential for problems as when dealing with money and relatives. If you’ve ever had a child ask you for a loan or a distant relative request money to start a business, then you know just how touchy these situations can be. Here are some real-life situations, along with some simple steps to help you safely navigate the tricky waters that result from mixing family and finances.

Surviving Your Estate
Recently I shared the heart-wrenching story of a young soldier who had to deal with the unexpected death of his mother. She didn’t have her affairs in order and now her son has the extremely difficult task of recreating her financial details from scratch. Here are some simple steps you can take to ensure that your loved ones aren’t left in a lurch.

Don’t Be Left Holding The Bag
Ned almost lost the farm that had been in his family for 8 generations! We’ve all heard that ‘The Devil is in the details.’ It is especially true when it comes to estate planning. Make sure you don’t make the same mistake Ned did.

She Came out of Nowhere
“If you’d hit her in the passenger door, you probably would have killed her,” the officer told me as I looked over the crumpled front of my mini-van. I was a bit shaken, but relieved. It could have been so much worse, especially for ‘Marge’.
 

Return to Top of Page

 © 2003 Legacy Planning Group Inc.™