November, 2016 - ElderCare of RI

Long-Term Care Insurance Cost?

Premiums can vary and are based on a number of factors. Major factors include your age and health at the time you purchase a policy and the type of coverage purchased. Policy cost is affected by the amount of daily benefit, length of the maximum benefit period, inflation benefits and nonforfeiture benefits.

Long-term care insurance can be expensive so know what your income can afford today and in the future, before you spend on a long-term care insurance policy. A general rule of thumb of affordability is the policy premium should not exceed 7% of your income. If it would be difficult to pay the premium today and you expect your income to not increase it is probably not a good idea to buy long-term care insurance.

Warning: The term “level premium” can be misleading. Most insurance companies will not guarantee that the premiums will never increase. Before buying, examine the information provided in the outline of coverage and face page of the policy.

Daily Money Management for Older Adults

Money Management for Older Adults

Daily money management programs (DMM) provide personal financial assistance to older adults who can no longer handle certain aspects of money management. These programs can mean the difference between living independently or not. DMMs also offer relief to family members who are providing care to their older parents or relatives.

The kinds of services that DMMs provide most often are:

Paying bills
Maintaining financial records
Preparing budgets
Balancing checkbooks
Negotiating with creditors

DMMs can help elders and their caregivers who

Cannot keep track of bills and financial documents
Often forget to pay bills
Cannot write checks because of health problems
Have trouble getting to the bank
Can no longer manage money or finances
Are susceptible to financial scams.

Rhode Island Motion Picture Production Tax Credit

The State of Rhode Island provides a transferable tax credit that can be used to reduce personal income taxes. The credit is generated from certified costs associated with Rhode Island made the feature-length film, video, video games, television series, or commercials. The RI Division of Taxation issues the tax credit certificates. The benefit to Rhode Islanders: Each of these motion picture production tax credit certificates may be transferred, assigned or sold.

THE BENEFIT TO YOU: The credits can be used dollar for dollar to reduce your RI income tax. For example, say your Rhode Island income tax is $1,000 you can use these credits to reduce the tax to $0. There is no limit to the number of credits you can purchase. Contact your accountant or a broker of tax certificates to obtain the credits. Rhode Islanders get your credits.

Reverse Mortgages: 5 Rules You Should Know

Reverse mortgages are a good planning tool under certain situations but know the facts before committing.

Minimum eligible age is 62 and the amount you can borrow is based on your age, interest rate, and the value of your home.
The fees and cost to obtain a reverse mortgage are often substantial and more than you would pay with a conventional mortgage.
You need to continue to maintain your home. Repayment of the loan is not made as long as you stay in your home, but you are still required to pay property taxes, insurance, repairs and other needed costs to maintain the home fair market value.
Know what will happen if the borrower should die or move.
Is the reverse mortgage your only option. Do not be instructed that this is the best or only solution for you – know all your options.

New Changes to Estate Planning

The federal estate tax is no longer a concern for many individuals and families including the most affluent who are seeking to avoid paying taxes. The 2015 estate tax exclusion amount is $5,430,000 and any unused estate tax exclusion amounts of a deceased spouse can be carried over to the surviving spouse. The combined exclusion amount for married couples is now a whopping $10,860,000.

Sadly for Rhode Islanders, it’s a different story:

Do not die in Rhode Island. The Rhode Island 2015 exclusion amount is $1,500,000 and the top rate is 16%. Also, any unused estate tax exclusion amounts of a deceased spouse cannot be carried over to the surviving spouse.