Creating a budget for senior living is essential for financial stability and peace of mind. Here are some practical steps to help you or your loved one create a budget:List Net Income: Begin by listing all sources of income, including pensions, Social Security, investments, and any other funds. Be thorough to avoid underestimating or overestimating income.List Expenses: Identify fixed expenses such as rent or mortgage payments, utilities, car payments, insurance, and other regular bills. These are essential costs that need to be covered consistently.Track Actual Spending: Keep track of daily spending to understand where the money goes. This step helps identify areas where adjustments can be made.Identify Savings Sources: Consider any savings accounts, emergency funds, or other financial resources available. Having a safety net is crucial for unexpected expenses.Set Goals: Define financial goals. These could include saving for healthcare costs, leisure activities, or travel. Prioritize these goals based on their importance.Recognize Obstacles: Be aware of potential challenges, such as rising healthcare costs or unexpected emergencies. Planning for these obstacles ensures better financial preparedness.Seek Support: Consult with a financial advisor or counselor. They can provide personalized guidance and help create a realistic budget that aligns with your specific circumstances1.Remember that budgeting is an ongoing process. Regularly review and adjust the plan as needed to accommodate changes in life and financial circumstances. By following these steps, you can better manage your finances during senior living.
What about those greedy relatives?Remember the Baudelaire children from our previous Legal Brief about Lemony Snickets A Series of Unfortunate Events? Lets look at another way parents with children of any age can protect their legacy.In Lemony Snickets tale the Baudelaire children are left with a significant family fortune when their parents die. Their uncle hopes to gain access to this vast fortune by taking in the children. When that does not work he tries to marry Violet, the oldest daughter, so he can access the family wealth. Hopefully your relatives are not awful like Count Olaf; yet, sometimes you only find out who people truly are after someone passes away. So, what is the estate planning remedy for greedy relatives or even your childs questionable spouse?Trust planning.Trust planning ensures your family fortune, no matter the amount, stays with your children; not in the hands of a greedy relative, in-law, creditor, or even used in an unintended manner by your children.There are many ways to write trusts to ensure your wishes are met. The general starting point for trust planning is a revocable living trust. When properly funded, this type of trust allows trust assets to pass directly to beneficiaries bypassing the probate process. Bypassing probate also keeps your wishes private. Additionally, if a surviving spouse remarries a revocable living trust can be built to keep existing family assets within the family. The surviving spouse can access assets but when they pass away trust assets continue down to your children and grandchildren instead of going to an unintended beneficiary.More specific concerns?Maybe you have a child with a disability? Consider a special needs trust. A special needs trust prevents a large lump sum from an inheritance going directly to a beneficiary. Instead, a trustee manages the trust and assets. Money is given on an as needed basis for anything not provided through other benefits or programs. This can be especially useful when needs based programming covers only the minimum services. This specialized trust allows you to protect and provide for your loved ones with special needs and circumstances when you are no longer able to do so, while still allowing them to maintain their other benefits.Is one of your children caught up in drugs or debt? Consider a heritage trust. A heritage trust could help in Violets situation with her uncle or if some other gold-digger comes along and tries to marry her for the family fortune. How? Heritage trust planning allows you to name a trustee who can manage trust assets. This person or institution provides the beneficiary with funds for reasonable requests (e.g., housing, education, etc.). The trustee acts as a gatekeeper. Trust assets pass from your child to grandchildren or other beneficiaries. This shelters trust assets, keeping them within your family or named beneficiaries for multiple generations. Trust assets are also protected from creditors, lawsuits, and from spouses or others not directly named as beneficiaries.What exactly is a trustee?Your trustee is the person who manages and distributes trust assets after your passing. As with any decision regarding finances, choose your trustee carefully. Appoint someone to this role who you will take their responsibility seriously. Someone you trust to carry out your wishes and manage trust assets wisely. Allowing assets to grow and benefit your family members for years to come.Remember: trusts do not go through the probate process like a will, so your decisions remain private. Give yourself peace of mind today by taking care of your estate planning with Stone Law! Make your guardianship wishes known in your will and put together trust planning to ensure your assets go where you want them to.
Medicaid is a government program that provides health coverage to individuals, and it is the leading payor of skilled nursing facility care in the United States due to the high cost of such care. Many people mistakenly believe that Medicaid is only for those with minimal resources, but an asset protection plan can help you protect your assets and still qualify for long-term Medicaid benefits.Asset protection planning uses exemptions that allow you to keep some of your assets. For example, in Pennsylvania, you are allowed to keep $45 of your income per month plus any amount you use to pay for health insurance; the rest of your income must be used to pay for your care. When applying for Medicaid, countable resources include assets such as real estate, cash, investment accounts, retirement accounts, life insurance with a face value greater than $1,500, vehicles, and any business interests. However, you can exempt the house you live in, one vehicle, and your spouse can retain their retirement accounts and anywhere between $29,724 and $148,620 of the joint assets, depending upon the total amount of your combined assets. Anything over this calculated amount of exemptions could be put into an asset protection trust and protected from skilled nursing facility costs.An asset protection plan will allow you to immediately protect a portion of your assets, in addition to the assets that are exempt from Medicaid, for significant immediate savings that begin the moment your plan is fully funded.An asset protection plan consists of an asset protection trust, in which you can control the assets, but cant have direct access to them. Giving up direct access to the assets in the trust keeps creditors and predators away. If you do need access to an asset in the trust, you always have the ability to make distributions to someone other than yourself.Asset protection plans not only protect your assets during life but also provide tremendous value for your loved ones when youre gone.Laws and statutes in the area of long-term care Medicaid are always changing, so its highly recommended to review your options with a local elder law/estate planning attorney. At Bellomo & Associates, we can help you learn more about asset protection plans and how they can benefit you and your family while protecting your legacy from the rapidly rising cost of long-term care. Dont wait lets get your estate plan in place!Are you ready to start protecting your assets and planning for long-term care? Contact Bellomo & Associates today to register for an educational workshop. We can help you create a customized asset protection plan and provide guidance on long-term care Medicaid eligibility and planning. Dont wait until its too latetake action now and secure your financial future.