I’m not as young as I used to be, and 2) “Old age ain’t for sissies” as the great Bette Davis once said. Gradually, or sometimes suddenly, it happens… we can’t keep up with household chores, we can’t see the street signs to drive safely, we give up cooking or we can’t walk without holding on to the furniture.

And it begins, a nagging fear that we’re losing our independence. In fact, loss of independence is the biggest fear among seniors. So what is the typical senior response? Pull ourselves up by the bootstraps and keep ongoing, of course! Call in the kids to help out! They’re supposed to take care of us in our old age, aren’t they? Unfortunately, the kids have spouses and children of their own. And they have full time jobs, not to mention they live out of town. It’s time for a new strategy.

Many seniors are finding the solution to remaining independent at home lies outside the family circle with paid caregivers. Most seniors find caregivers in two ways. The old way is to run a classified ad or hire through a temporary service. The senior bears all the “employer” responsibility for this kind of caregiver.

Donating cash or other assets to a charity is deductible by you. If it’s a non-cash donation the amount of deduction is the fair market value of the property given. It doesn’t matter if the value is higher or lower than your cost. Let’s look at a possible scenario.

Let’s say that you purchased Alpha Great Technology stock several years ago for $1,000 and it’s now worth $500,000 and you desire donate it to your favorite charity. If you sell the stock, you will have capital gains tax on the profit which could be over $100,000 (federal and state taxes), greatly reducing the amount available to donate. But if you donate the stock without selling it, there is no taxable event to you and the charity now has the full $500,000 (or whatever amount you contributed) and you get a deduction for an equal amount. There is no tax on the sale of the stock by the charity. To restate the rule, the deduction is the fair market value of the property donated. The amount deductible in the current year may be limited, but any unallowed deduction is carried over to the next year. There are other technical considerations but remember, this article is keeping it simple.

Now, let’s talk about making such a contribution and receiving income in return. A charitable remainder trust (CRT) is a special type of nonprofit entity set up by you in which you make contributions. The income earned by the CRT is not taxed and distributions can be paid to you. This can be a high as 10% of value of the assets on hand. But let’s say the amount is determined to be 8%, which would be about $40,000 per year. This is taxable to you, but may be sheltered by the $500,000 deduction, which will most likely span several years due to annual limitations on the deduction. Upon your death the assets in the CRT are then distributed to the charity or charities you designate when setting up the trust. So what you have done is to set aside your desired contribution into the CRT which pays you tax sheltered income, while you are alive. Your favorite charity gets the donation upon your passing, achieving the objectives that you determined today.

This article is intended to be basic. There are many variations on what is discussed here and many solutions can be used in conjunction with each other. Hopefully you can see the power in creative and careful planning. The rules get complex and you must stay within the rules that govern type of planning instrument you choose. This simple, yet powerful, educational article is your first step in understanding how planning can be of great benefit to all concerned.

Depending on your philanthropic desires, the size of your estate and other things unique to you; objectives that many times are thought not possible can be achieved. You can achieve great success with your giving, still leave an estate for your heirs, create income and divert money from taxes to organizations that are doing a great job of achieving their mission which is alignment with your desires.

Next time we’ll discussed donor advised funds and private foundations.

Jim Colville is a CPA with over 35 years of experience.. His wealth of knowledge allows him to more than meet the needs of our aging population. Jim can be reached at 858 682 9668 or email directly to Jim@JimColvilleCPA.com

Our team can provide you with information that will aid you in analyzing what style of living is right for you at this point in your life.

When it comes time to think of selling the family home and moving into age-appropriate housing, there are many options to consider. Here are just a few:

• Retirement communities
• Condos
• Independent living facilities
• Assisted care homes
• Skilled nursing homes

Condos and Retirement Communities usually do not provide any type of care or meal service. Independent Living Facilities may offer you your own apartment with some kind of meal service available. Assisted Living Communities usually have individual apartments that you need to furnish, but they offer more care. They can help you bathe, dress and go to the doctor’s. They provide all of your meals, even at your bedside if you are not feeling well. The Skilled Nursing Homes are for individuals who require 24-hour, complete nursing assistance.

To make a decision that will determine your entire lifestyle, consult a professional and ask for their advice. As a REALTOR® and a Senior Real Estate Specialist, I am trained in Senior moves. Whether you are contemplating a condo, a retirement community or some independent living facilities, I am available to answer your questions.

You may also want to speak with Amy Abrams, of Eldercare Guides. She specializes in finding the right assisted living or nursing facility. Irving Eisenberg of Wealth Manager Group can help you figure out how you can afford this move. Michael Pohl of RSF Mortgage may help you find the money to borrow for such a move. Our team is devoted to making your moves less stressful and helping you plan your sunset years for relaxation and peace of mind.

One Active Retirement Community for those 55 years and above is nestled in the hills above Carlsbad, California. It is called, Ocean Hills Country Club. This gated community of 1600 homes is priced from the mid $300,000 to $800,000 and has homes from approximately 900 sq ft to over 2500 sq ft . Some have ocean views, some golf course frontage and all are architecturally interesting with white stucco and red tile roofs. Numerous amenities are available like the golf course, pool, tennis and clubhouse. Call me at (619) 540-5891 for more information or if you would like a private tour of the community.

Want to see more photos of the Ocean Hills Country Club? Follow the link below:

More Photos of Ocean Hills Country Club:

Lush Golf Course

Full Exercise Room

Large Pool

Tennis Courts

Senior Support Gives Value Added Services for a Reduced Cost

Aside from coordinating adequate cash flow with money managers or financial advisors, liaising with key authorized family members and ensuring timely payment of bills, Senior Support assists its clients to minimize tax liability. Specifically, Senior Support tracks medical, pharmaceutical and insurance payments and payouts, and reviews insurance policies to maximize benefits. Due to nine years of diverse civil litigation defense experience, which included the daily review and analysis of thousands of medical records, contracts and insurance policies, Senior Support’s critical eye for spotting fraud or inconsistenciesin medical records, billing or other financial records, adds a competitive advantage through proactive monitoring of clients’ monthly bills. For example, during a recent document review, followed by a brief exchange of written correspondence and a few telephone calls, Senior Support got one client a $10,000 reimbursement from a private health care provider due to a “billing discrepancy.”  Senior Support’s bill was less than 10% of the reimbursement. Lauren Derstine is a licensed attorney who founded and heads Senior Support, a daily money management or billpaying venture. 619-303-2558

The Role of the Private Fiduciary

A fiduciary is a person who assumes responsibility for a position of trust. Professional fiduciaries protect the assets, interests and dignity of their clients. They should act as an advocate in safeguarding the client’s civil and legal rights by making decisions that maximize and protect the rights of the client, and allow for maximum independence and self-reliance. Private professional fiduciaries serve in a number of roles:

· As a Successor Trustee to carry out the terms of the client’s Trust document. A private fiduciary may be named as successor trustee as an alternative to a family member, friend or institution.

· As a Conservator who is legally appointed to manage the Conservatee’s estate and/or person when the individual is deemed by a court to be physically or mentally incapacitated.

· As a personal representative appointed by the Probate Court to serve as Executor if named in the will, or as Administrator if not named in the will, or if there is no will.

· As a Representative Payee designated by the Social Security Administration or other retirement plans to receive the income and pay the expenses of an incapacitated individual.

· As an Agent Under Power of Attorney for Financial Matters where the fiduciary conducts personal and financial business pursuant to the client’s written instructions.

· As an Agent under an Advance Health Care Directive, where the fiduciary acts as attorney-in-fact to make health-care decisions, including placement, medical, treatment and final burial arrangements.

Some private fiduciaries provide a range of other personalized services to individuals and families during unexpected life transitions including bill paying and personal financial management, healthcare administration, real property and household management and disposition, liaison with attorneys, CPA’s, bankers, investment advisors and others.

Recent Legislation Created Professional Fiduciaries Bureau

In 2006, the California Legislature passed and the Governor signed Senate Bill 1550 creating the Professional Fiduciaries Bureau to license and regulate private fiduciaries including conservators, guardians, trustees, and agents under durable powers of attorney as defined in the Professional Fiduciaries Act (Business and Professional Code Section 6500). Attorneys, Certified Public Accountants, and Enrolled Agents are exempt from licensing. For licensing, applicants will be required to provide information including business and home contact information and disclosure of conviction, bankruptcy, and breaches of fiduciary duties, complete thirty (30) hours of pre-licensing education, submit fingerprints to the Department of Justice for a criminal background check, consent to a credit check for the application review process, agree to adhere to the Professional Fiduciaries Code of Ethics, sign an affidavit under penalty of perjury. Ongoing continuing education and detailed reporting will be required for annual license renewal. (Source: www.fiduciary.ca.gov )

Professional Fiduciary Association of California (PFAC)

PFAC is the professional association for private professional fiduciaries practicing in the State of California. It is an affiliate of the National Guardianship Association. Its purpose is to provide economic, social and political information and ongoing continuing education to promote minimum standards for private fiduciaries. Its members are dedicated to serving and protecting the best interests of those who have placed their trust in them by ensuring the highest standards of ethics and practice, establishing comprehensive statewide certification, maintaining high qualifications for membership, and requiring continuing education of its members. (Source: www.pfac-pro.org)

The Eldercare Resource Team currently needs a professional fiduciary member. Please Contact Us if you’re qualified and interested.

]]> http://eldercareresourceteam.com/the-professional-fiduciary-little-known-resource-can-tackle-big-concerns/feed/ 0 http://eldercareresourceteam.com/the-elder-care-resource-team-is-here-to-help/ http://eldercareresourceteam.com/the-elder-care-resource-team-is-here-to-help/#comments Thu, 17 Jul 2008 10:58:21 +0000 admin http://eldercareresourceteam.wordpress.com/?p=5 Caring for an elderly relative or adult dependent can be a real challenge and can cause major issues with your ability to keep an appropriate balance with work and life. Making arrangements, handling financial and legal issues, and finding community resources can be time consuming, frightening, and frustrating. And it can get worse if you have to deal with all of this during work hours or with other ongoing issues of your own.

The Elder Care Resource Team is group of independent professionals who have teamed together to offer most all of the services needed during such trying times by elevating the standard of care and professional services for elders and their families in the San Diego community. Regardless of the time frame that you are experiencing, planning in advance or have current and pressing issues, our professionals are here to help. Simply find your need on this page and click on the link. You will find a brief description of the services they provide and their contact information.