Medicaid Planning And Benefits

Benefits of Home Care Agency VS Direct Hire

Know the benefits of both and make a better decision.

Home Care agency…

Must conduct a criminal background of hires before they are placed in someone’s home.
Must have insurance policies to protect their clients.
Replacements are readily available to continue service without interruption.
Home care agencies have the experience and knowledge to make sure their employees are qualified for the work that is required.

Direct Hire…

The cost is often less.
You take on the responsibility of being the employer including paying payroll taxes and workers compensation.

If the worker is hurt on the job you may be responsible both legally and financially.

Benefits of Having a Trust

If you’re wealthy an estate plan is important to minimize both federal and state estate taxes. And, if your not, it is still important to make certain your assets are distributed to family members according to your wishes.

Here are seven reasons why a trust is needed.

Your children are too young or inexperienced to manage inherited assets.
Upon your death, your spouse remarries. To protect from unintended individuals being included in your estate.
If you have a second spouse to make certain that on your death your spouse receives income and assets to maintain their lifestyle and upon the spouse dies, the assets go to your children, not to the second spouse children.
If you become too ill to manage your assets, you avoid the need for your children to go to court.
Protection from creditors should the risk exists.
In the unfortunate situation of a child’s divorce that the assets will remain with your child and not the spouse.
You want a significant portion of your assets to go to charity, and at the same time, you want to provide for your spouse and children.

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.