Q – My mom’s been thinking about selling her home, which she has maintained even though she is currently living with a relative. After doing some research online, I realized there are some significant tax implications of selling a home, especially when it is mortgage free. Is there a better option to allow her to minimize the tax costs and maximize her assets?

A – The best bet is to have an estate planner review your mother’s specific circumstance and those assets that can be found in her property. However, there are a few options available such as reverse mortgages, trusts, and transfer of assets. Otherwise, at the time of her death, the property will be transferred to the named recipient as outlined on her will. An inheritance and/or estate tax will apply, which can be substantially less than the taxes your mother could pay if selling her home. At that stage, the person responsible for the estate under the will can sell the property to pay for funeral costs, can distribute profits to named family members, rent the home, or live in it themselves. Talk to an estate planner before making any definite decisions about how to handle your mother’s estate!

Sources:
1. ThinkGlink
2. Wikipedia

Q – My mother recently decided to formalize her will and get her estate in order and has asked me if she can name me as estate executor on her will. I’m open to taking responsibility for her affairs after her death, but I don’t know much about the process. What are the responsibilities of an estate executor in Oakland?

A – While it’s not uncommon for adult children to be appointed estate executors for their aging parents because there is already a strong element of trust in the relationship; you should first know that it won’t be an easy job. If your mother’s affairs are in good order, the estate executor process itself could go smoothly, but dealing with the emotional repercussions of losing a parent while managing all the responsibility can be a challenge. But, if you are sure you’re up to the job, here is a lists of tasks you may be responsible for carrying out:

• Beginning the probate process – filing the will and petition for probate. Specific probate laws apply for the process in Oakland and may vary between states.

• Notifying the family – close family members can be notified that their loved one has deceased.

• Obtaining death certificates and EIN (Federal tax number for the estate)

• Determining and collecting the deceased assets (locating documents that verify value of the estate and make an inventory list)

• Letting people know who the executor is – family members and friends with claims will need to get in touch with the estate executor

• Managing the property of the estate – paying bills, taxes and other legalities

• Settle Finances – filing income tax returns on behalf of the deceased

• Distributing assets – distribute assets to those named on the will

• Be removed as executor – once the estate is settled, petition the courts to be removed as executor

Sources:

1. Third Age  Alan S. Novik
2. AFSP

Image: Toronto Lawyers

Setting up a home inheritance is a great way for seniors to avoid paying expensive taxes should they decide they no longer want the responsibility of home ownership while they’re still alive or to avoid having to “spend-down” their assets to qualify for programs. Arranging the home inheritance is an important part of estate planning which can help ensure that a senior’s home is handled according to their wishes after their death. By including home inheritance on a living will or allocating it to someone on a will, seniors can ensure that the appropriate family member receives the home, which they can then rent, sell, or choose to live in themselves.

It’s important for recipients of a will to understand that there is an inheritance tax which applies to homes left to them in a will which depends upon the total cost of the home. Percentages of inheritance tax vary state to state, and the best way for a senior to determine how to best manage the assets in their home while they’re still alive is to speak with an estate planner who can help to make the most out of the financial aspects that go with it.

Sources:
1.    ThinkGlink.com
2.    Wikipedia

Q – What should be included in a living will and should all seniors have them?
A – A living will communicates a senior’s wishes with regards to their healthcare, to ensure that family and medical practitioners carry them out once they no longer have the ability to voice what they want. Every senior should prepare a living will before their health comes into question, because unfortunately illness just can’t always be predicted.

When creating living trusts and living wills during the process of estate planning, seniors should understand their options and clearly state their wishes when different medical issues occur. In a general statement, seniors can include treatments they would consider having or prefer should specific medical issues arise (for example, chemotherapy to treat cancer); while general statements are not legally binding, doctors will keep them in mind when determining the course of treatment. Advance decisions and advance directives also allow seniors to refuse specific treatments and actions by a medical doctor; for example, refusing life support under any circumstance. When creating a living will, seniors should also appoint an advocate, which can be a family member or caregiver, to ensure that medical wishes outlined in the living will are abided by.

Having a living will ensures that all seniors have a voice, and play a role in their own medical care; even when they are not physically able to communicate their healthcare needs.

Sources:
1.   CNNMoney.com Gerri Willis
2.   Directgov

Home Care Oakland and Alameda County provides senior care and elder home care in East Bay Area and Alameda County, including Alameda, Berkeley, Castro Valley, Emeryville, Fremont, Hayward, Livermore, Oakland, Pleasanton and Union City. For more help, please call Home Instead Senior Care Oakland at 510-663-3652.

Talking to your senior parents about estate planning can be an uncomfortable subject, because many adult children don’t want to feel like they’re interfering with their parents’ personal affairs. Estate planning typically includes a legal will that outlines distribution of assets; a financial power of attorney which dictates who will look after a senior’s finances when they become unable; a medical power of attorney, the person responsible for carrying out a senior’s medical wishes; and a living will, which establishes a senior’s healthcare wishes if they become unable to speak for themselves. Discussing your senior parents’ estate early on with them ensures that you understand the role that they expect you to play after their deaths or during a medical emergency so that their wishes are carried out.

Talking to your elderly parents about estate planning becomes more important if they have not completed the necessary steps to protect their assets and secure their wishes. When approaching the topic of family estate planning, make sure that your siblings and immediate family members are involved so they don’t perceive your interests in your parents’ estate as self-serving. Ensure your parents understand you do not need to have the division of assets explained; it doesn’t matter how much they are planning on leaving you. What’s important is that they put the legalities in place to ensure they control what happens to their assets, even once they loose the ability to represent themselves.

Sources:
1. SeniorJournal.com Robert Valentine
2. FamilyEducation.com

Home Care Oakland and Alameda County provides senior care and elder home care in East Bay Area and Alameda County, including Alameda, Berkeley, Castro Valley, Emeryville, Fremont, Hayward, Livermore, Oakland, Pleasanton and Union City. For more help, please call Home Instead Senior Care Oakland at 510-663-3652.

Home Care Oakland and Alameda County provides senior care and elder home care in East Bay Area and Alameda County, including Alameda, Berkeley, Castro Valley, Emeryville, Fremont, Hayward, Livermore, Oakland, Pleasanton and Union City. For more help, please call Home Instead Senior Care Oakland at 510-663-3652.

Senior rights need to be protected, and since 1973 The Silver Haired Legislature has been doing just that by offering government help for aging Americans in many states across the US by giving seniors a voice.

The Silver Haired Legislature ( SHL) are a group of citizens aged 60 and older, who are formally elected in each participating state to ensure there is a legislative involvement that focuses upon the needs of aging adults, while providing an open discussion forum for senior issues. The TSHL was first founded in Missouri in 1973, and has now been adopted by 31 states in the US, including Texas, Alaska, California, Florida, Louisiana, New Jersey, Utah and many others.

Elected volunteer officials of each state’s branch of the SHL are elected upon 2-year terms, and sworn in by the Secretary of State to become formal members of the organization. In the state of Texas, these elderly advocates select ten priority issues faced by older Americans and present them to the Texas Legislature for support when they’re in session during odd-numbered years. The 31 other states involved with the SHL follow a similar format to the Texas branch, and regularly provide advocacy support to senior issues that are occurring within their jurisdictions, while providing educational resources through the partnership with the Area Agency on Aging for senior citizens who are living with these problems.

The SHL tries to ensure that its senior representatives are approachable by both elderly members of the communities they represent and their families who are concerned about their welfare. Since the SHL members can be voted in to serve multiple consecutive terms, they often become recognized members of the senior community, which creates an open dialogue about the concerns and needs of senior citizens who feel they finally have someone to represent their voice and listen to their concerns.

To learn more about the SHL representatives in your area or approach them with an aging issue that requires government support and advocacy, visit the website of your local branch or contact your local Area Agency on Aging for more information about the SHL and how they can help you.

Sources: http://www.txshl.org/index.cfm
http://www.txshl.org/about.cfm
http://www.nemoaaa.com/shlfacts.htm

Home Care Oakland and Alameda County provides senior care and elder home care in East Bay Area and Alameda County, including Alameda, Berkeley, Castro Valley,  Emeryville, Fremont, Hayward, Livermore, Oakland, Pleasanton and Union City. For more help, please call Home Instead Senior Care Oakland at 510-663-3652.

The Silver Haired Legislature, present in 31 states across the US, advocates the needs of aging adults, which includes providing guidance and support to their family members. One of the major issues that has been on the minds of the SHL relates to the sandwich-generation; those family caregivers who provide assistance to any aging relative, while raising their own young families and managing careers. Not only can providing care for an elderly parent or other relative take a physical toll on the lives of these Americans, but it can also carry a serious financial burden which only grows as life expectancy continues to rise. The Oklahoma SHL is trying to pass Senate Bill 725, which has been cleared by the Senate, but has not yet been heard by the House. This Bill will provide a tax deduction to families providing care and support for its elderly members.

Not only is The Silver Haired Legislature in many states focused upon legislation that will provide family caregivers financial support, they provide community resources through the Area Agency on Aging to help educate seniors and their families about rights, care issues, and other factors which can impact the lives of older adults. The Texas Silver Haired Legislature offers online courses for family caregivers; understanding that when balancing responsibilities, it’s important to offer educational resources which can be accessed at their convenience. These courses provide useful tips relating to care techniques, provide community support for common care-related issues, and makes them aware of the resources available.

Once per session, the elderly advocates of The SHL meet to discuss and vote upon which issues faced by older Americans that they will present to the Senate. First, however, the groups in each state reach out to the senior community to learn about what issues the population believes requires government support. Every year, when the SHL and Senate are in session, the Texas Senior Advocacy Coalition organizes Senior Day at the Capitol. This took place at The Capitol in Austin on February 10th. Seniors and their families were invited to attend independently or with the groups they’re involved with where they had the opportunity to mingle with representatives of the SHL and of the state legislature to voice their concerns and learn about senior living resources. Seniors and their families are also welcome to contact SHL representatives directly by phone or email, or approach other state advocacy groups which will present the issues before the SHL.

The Silver Haired Legislatures across the United States exist to represent the needs of older adults.  So Families, it’s time to get yourselves and the seniors in your lives involved in advocacy for senior welfare.

Sources: http://www.oksenate.gov/news/press_releases/press_releases_2007/pr20070925b.html
http://www.txshl.org/training.cfm
http://www.txshl.org/calendar.cfm