Why You Should Plan in Advance for Later Stages of Life
One frequent topic of discussion with clients at North Main Financial Group is how to plan for seniors or folks who may be in the later stages of life. We have these discussions with children whose parents are in this space, and we also speak to seniors looking to plan ahead. A key point of our conversations is how to address assisted living or nursing home expenses. However, there are many things to consider as someone enters this season of life.
If you are a child helping to care for an aging parent, or you’re in that space, here are a few things to think about.
Do the planning in advance.
If you can, it’s always a good idea to do the planning in advance. Whether you are caring for an aging parent, or moving through the retirement season of your life, planning in advance ensures things are carried out per your wishes. Of course, there are times that this isn’t always possible. You may be in a space where a family member went from being relatively healthy to an assisted living or nursing home space very quickly. In this case, you are probably making some decisions on the fly. When you can, do that planning in advance because you can look at a broader array of options. You can also work through some of the dynamics of the decision-making process in advance.
Be aware of tax laws.
Now you may be asking, what do taxes have to do with planning for later stages of life? There are several issues with regards to taxes that come up. There are many things that can affect you from the deductibility of medical expenses to the possibility of a step-up in cost basis for particular capital assets when folks pass away. There are still some states that have an inheritance tax as well.
These are just a few items, and there are many more. Where you can, do some planning in advance and be aware of the different tax laws. You may make a decision that is disadvantageous to you from a tax standpoint even though you are doing it for all the right reasons. It’s always a good idea to consult with your financial or tax advisor on the current tax laws.
Be mindful of the possibility of long-term care.
Always be mindful of the constant bogie possibility of long-term care, whether assisted living or a nursing home. There’s no easy answer to this. There are several avenues you can take, and they all have their pros and cons. Again, if you can, try to have those conversations in advance of need. It’s not always easy, or even possible, to do that, but take advantage of it when you can.
If you have questions about planning for the later stages of life, whether you are caring for a parent or are currently in that space, call us at (704) 987-1425 or visit us at www.northmainfinancial.com. If you wish to schedule an introductory meeting, we would be happy to meet with you at no cost or obligation to you.
You may also be interested in the following articles:
Three Tips to Help You Prepare For Retirement
When Is The Best Time To Take Social Security
These Blogs are provided for informational purposes only and should not be construed as investment advice. Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors only and do not necessarily reflect the views of SagePoint Financial.
