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Three important legal documents that every adult should have are a will, a living trust, and a living will. Each document defines your decisions for the different areas of your estate and will save your loved ones time, money and stress when you are gone. These documents are easy to draw up, or you could have a lawyer prepare the documents for a nominal fee.
A WILL dictates how your estate and property is to be distributed after your death and can also designate guardians for children and self should you become incapable or pass away. A regular will must pass through probate court in most states before your estate can be passed on to your heirs. Most state laws do not require that you use a lawyer to prepare your will; you can use a will kit at home. Probate court can take some time if there are any disputes, so make sure your wishes are clear when writing your will. A LIVING WILL defines your wish to be kept or not kept alive by artificial life support in the event of terminal illness or injury. A living will also give you the ability to set limits on your hospital, medical and funeral costs that can easily drain your estate and leave your loved ones with the bills. If you express your wishes beforehand, it will make the process much less stressful for those involved in your care and the execution of your final wishes. A LIVING TRUST is quite similar to a regular will, but they are different at the core. Unlike a regular will that cannot be changed after it is written, a living trust can be amended at any time. A living trust takes effect while you are alive, whereas a will takes effect after you pass. You can put property into your living trust at any time before your death and afterward your estate goes directly to your heirs without passing through probate court. If you ever change your mind about the definitions of your will, you can change or revoke how your estate will be divided at any time by using a living trust. A living trust will also save money and time later on because your loved ones won’t have to go through probate first.- Decide whether or not you (or your parents) will itemize deductions. Run the numbers to decide whether you’re better off taking the standard deduction (which is $5,950 for single filers or $11,900 for those who are married filing jointly). If you are going to itemize, look for opportunities to increase the amount of deductions before the year is over, since all deductions will lower your tax bill. For example, if you make a larger-than-usual donation to charity you’ll reap extra benefits. This may motivate you to do a little holiday cleaning, and take unused clothing or furniture to The Salvation Army or Goodwill. These organizations will provide you with a receipt, and you’ll be able to claim the item’s fair value as a deduction.
- Make large gifts now. If you or your parents want to give someone a large cash gift, write the check and make sure it’s cashed before January 1. You can give as much as $13,000 to an individual without being required to pay gift tax.
- Make an extra house payment. Here’s a trick for maximizing your deductions if you’ll be itemizing next year. Make your January mortgage payment early. As long as you mail it by December 31, the payment will qualify for this tax year.
- Review medical expenses. How much have you and your parents paid for medical care out-of-pocket? If your medical expenses are greater than 7.5 percent of your adjusted gross income, you can deduct them on your tax return. If you are close, you may be able to find ways to get care or purchase supplies that will put you over the edge.
- Consider claiming your parent as a dependent. If you pay more than 50% of your parent’s expenses, and their gross income is less than $3,800 (not counting disability payments, tax-exempt income, or Social Security), you can claim them as a dependent. Again, if you’re just shy of qualifying, see if you can make up the gaps in the last few weeks of the year.
There comes a point when you are caring for a loved one, when you have to ask yourself what is the best decision for me as well as for the person I am caring for. Whether you decide to continue to care for your loved one or start to explore other options such as a professional care home, take the time to insure your own personal health and well being. There is a reason that during the safety briefing on a plane they tell you to put your oxygen mask on first, then help your love ones. If you don’t take care of yourself you have no way to care for someone else. “There is a cost to caring,” states Charles Figley, an expert in trauma and researcher in the field of burnout; he comments that compassion fatigue is something that can occur when caring for someone long term. Take a moment to examine how you feel and see if you may be experiencing any level of burnout or even compassion fatigue and then take the time to explore ways to best care for yourself as well as those you love.
Before we go much further, let’s briefly explore the difference between burnout vs. compassion fatigue. Figley describes burnout as the end result of a gradual process of wearing down. It is the long-term consequences of unaddressed compassion fatigue, resulting in emotional exhaustion and a diminished sense of personal accomplishment and achievement. Recovering from burnout is often a more lengthy process.Compassion fatigue is often a result of the daily care we do, and is a more immediate specific response. It is often characterized by emotional and physical exhaustion; symptoms resembling depression; and usually a shift in a person’s sense of hope and optimism about the future value of the care they are offering. This may not be a constant feeling, but it something that comes and goes. The recovery from compassion fatigue is often less lengthy then burnout.
Are you isolating yourself, bottling up your emotions, having nightmares or even physical ailments? Do you suffer from compulsive behaviors such as over eating or over spending or have difficulty concentrating. Do you feel stressed out or depressed? These are symptoms of compassion fatigue. There is no cure for compassion fatigue but by practicing good self care techniques daily can help you to be physically and emotionally healthy and decrease these symptoms.
A self-care plan begins with you. It begins with being kind to yourself, becoming aware of how things are effecting you (both physically and emotionally), setting boundaries, expressing your needs, taking actions to aide yourself, surrounding yourself with individuals that listen and support you and being able to listen and support others around you. Although when you care for someone it seems like you have no time, you need to take the time to have healthy eating and exercise habits. Get plenty of rest and hydrate yourself. Develop good time and self management skills even if it means saying no. Have a support system, take breaks and try to enjoy a balance in your life. Do not give up all of your friends and hobbies. Pick your battles and even though it is hard, consider professional care givers, if not on a regular basis then consider short term help. You can sometimes schedule breaks, where you use a professional care giver in the home or facility for a few weeks a year, allowing yourself to have time to decompress and feel better before you can no longer care for your loved one.
A study in ‘The Gerontologist’ states that, “approximately one-third of 65-year-olds are single.” That’s a 50% increase since 1980 according to the U.S. Census.
Aging with family and friends has been shown to result in improved health of seniors, including lower chances of cognitive impairment, and hospitalization. Research shows that socialization, companionship and hobby-building has great benefits for seniors: older adults who are surrounded by others are at a decreased risk of both cardiovascular and cognitive decline.
For some seniors, moving into an Assisted Living Community is the first step they can take to help maintain or increase the quality of life as they grow older. In reputable communities, experts in the field of long-term care help coordinate between activities to create communities where older adults are able to create new memories with one another. Residents take on scheduled group hobbies such as yoga, cooking, and artistry while pursing passions both new and old. Assisted Living Communities can act as a hub for seniors to connect and make new friends.
Our advice for making friends in a community? Participate and try out all the opportunities that are available. The goal is to foster an natural feeling of community with residents similar in age and circumstances.
Let’s say that your mother has granted you power of attorney over her finances, and she has recently become unable to manage her own affairs due to dementia. Upon looking into her accounts, you discover that she has several thousand dollars worth of debt. Can the creditors come after you personally for this money?
No, they cannot. This holds true even if you have power of attorney. The only way you can be responsible for your parent’s debt is if you were also a co-signer on the loan. But, those of us who feel duty-bound to do the right thing may want to make sure that the bill gets paid anyway. Here are some things to consider before you proceed.
What type of debt does your loved one have? Depending on who the creditor is and the conditions of the loan, the rules for paying back the debt or your sense of obligation might be different. A bank loan is going to be relatively impersonal. The bank will be business-like if there’s a problem with the account, and if everything’s in order will probably not hassle you to repay the whole loan quickly. However, if your mother owes money to a contractor who also happens to be a family friend, and he needs the money, the debt will be much harder to ignore.
Is there a way to contest or renegotiate the debt? For example, was your mother taken advantage of by an unethical salesperson? Did she put a doctor’s bill on a credit card rather than working out a payment plan directly with the office? Can items be returned or recurring services canceled?
Explore different ways of addressing the problem. It’s always worth calling the creditors to see if more favorable arrangements can be negotiated, and the Consumer Credit Counseling Service can help you with working things out fairly. Also, examine your parent’s finances carefully to determine if a source of funding is available. For example, they may qualify for a reverse mortgage that can help you get the debt taken care of quickly. And if your parent has passed away, the matter is as simple as using whatever funds remain in the estate to pay what you can, and then notifiying whoever has not been paid that there are no more assets.
If there’s no money available to pay the creditor and your parent is still alive, you can simply try asking them to forgive the debt (though they may not buy that there are no assets unless your parent is on Medicaid). Your parent can also declare bankruptcy. You’ll of course want to speak with a lawyer before considering this step.
Few of us are comfortable leaving debts unpaid, but if you follow the steps above you will have done your due diligence to get creditors what they are owed.Corporate Office / General Information
Raya’s Paradise, Inc.
1156 N Gardner St.
West Hollywood, CA 90046
Tel: (310) 289-8834
Fax: (323) 851-0375
E-mail:Info@RayasParadise.com
