Archive for 'Personal & Family'

Jul 31

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Additional information on returns relating to mortgage interest.

Sec. 6050H is amended to require new information on the mortgage information statements that are required
to be sent to individuals who pay more than $600 in mortgage interest in a year. These statements will now be
required to report the outstanding principal on the mortgage at the beginning of the calendar year, the address
of the property securing the mortgage, and the mortgage origination date. This change applies to returns and
statements due after Dec. 31, 2016.

Dec 11

Unknown

Dec 07

Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56 cents per mile for business miles driven
  • 23.5 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The business, medical, and moving expense rates decrease one-half cent from the 2013 rates.  The charitable rate is based on statute.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.  In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Rev. Proc. 2010-51.  Notice 2013-80 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

May 30

 70% of Americans will need long term care at some point

 Few Americans reaching that age are prepared to pay for that care

 Fact:  A SCAN Foundation report states that families of the aging bear a major share of care costs paying out $450 billion in unpaid caregiving along with $63 billion in out-of-pocket costs.

  Planning ahead is essential to assuring any care needed ahead.  Taking prudent financial steps now means funds for future long term care will be available when needed.

  It’s an accepted fact that Americans now live longer.  10,000 baby boomers each day over the next two decades will turn 65.  As the population ages, millions will either receive or provide long term care.

 It’s a common assumption that the aging will either rely on government entitlement supports or family support to provide for their future care.  A 2010 Harris Interactive Age Wave survey indicates the aging generally fear becoming burdensome more than they fear death itself.

 Aging responsibly means crafting a written plan and sharing that plan with one’s family.  The plan should address three primary considerations:

 1.     How will I receive care

 2.     Where will I receive care

 3.     Who will provide the care

 Costs associated with care will inevitably change and it’s more important than ever to understand those changes.  For example, costs vary by region.  Many providers now offer consumer information via free mobile apps for iPhone, iPad and iTunes.

 Retirement planning and long term care planning go hand in hand.   One survey of costs puts the annual median rate of a nursing home private room at $83,950.  A good retirement plan coupled to a long term care insure plan helps to transfer some of the risk an unplanned long term care need may bring.

 As long term care insurance costs are lower for younger consumers, it a good idea to purchase a plan at a younger rather than older age.  In fact, it’s really never too early to get started!

 Long term care plans evolve to meet changing needs.  Currently available options give  the consumer the ability to tailor care packages to his or her individual needs, ranges and budgets.  Just as consumers have many options available in other areas of their lives, consumers now have many options available in choosing long term care packages.

 When considering long term care insurance, remember that knowledge is power and that there are many tools available to help an individual in making sound decision and completing solid written care plan.

Definitely something to think about . . .

 

May 30

Deciding to move a loved one to a long-term-care facility is never easy. Finding the right facility may be even harder.

You may spend months wrestling with the decision to move your loved one to a facility providing 24-hour care.  The time you take in researching facilities is well worth it because you will find the right facility

 

A loved one with Alzheimer’s, dementia or other disability may someday need to move into a long-term-care facility. Many Americans needing care receive are fortunate to receive home care from family or friends while those with Alzheimer’s are more likely to receive care in a nursing home. A2012 Alzheimer’s Association states 75% of people diagnosed with the disease will be admitted to a nursing home by age 80 versus 4% of the general population. Knowing how to choose the right care facility for an Alzheimer’s patient is essential in providing proper care for an Alzheimer’s patient.

 

1: Determine Needs

 

Understanding the sort of care an individual with Alzheimer’s requires comes before selecting a care facility for that individual.  Facilities typically provide several levels of care:

 

 

 

Assisted living for those requiring support with one or two daily living activities such as dressing or bathing.

 

Skilled nursing for those requiring the attention of a nurse every day including those bedridden or exhibiting more complicated behavior issues.

 

Memory care for those demonstrating dementia or Alzheimer’s disease.

 

 

 

A facility may provide varying levels of care under one roof offering the option of first moving to a senior-care residence then moving on to another level of care as the need arises.

 

Matching a facility’s location to a loved one’s desired location is important. Will an urban or suburban setting be the right choice? Will the city of current residence or somewhere else nearer the family be the right choice? Will the facility allow pets and accommodate special dietary needs? These are the sort of considerations to take into account before starting a long term care facility search.

 

2: Assess Ability to Pay

 

Financial considerations such as the lack of long term care insurance may limit options. Assisted living on average costs about $3,600 a month and memory care on average about $4,700 a month. Skilled nursing facilities cost an average more than $6,700 a month with some costing as much as $10,000 a month.

 

Health insurance and Medicare do not cover this level of care.  Veterans may qualify for assistance for long term care through the Department of Veterans Affairs.  Be aware Medicaid rules vary by state.  Generally, the government programs pay for long-term-care services such as nursing home care.  Remember that assets must first be exhausted before becoming Medicaid eligible.  Medicaid covers assisted living in more than half of the states if the cost is less expensive than a nursing home.  The Medicaid waiting list for assisted living is long.

 

3: Start the Search

 

After determining the sort of facility and services needed, the search begins.  Professionals, doctors, friends and family are all good information resources.  Other resources such as the U.S. Administration on Aging’s Eldercare Locator provide invaluable help.

The nation’s largest senior-care adviser service is A Place for Mom and has a directory listing 19,000 senior care facilities including those specializing in dementia care.  The service’s advisers provide free assistance in finding care options.  A senior care facility listed in A Place for Mom pays the service a referral fee when a senior chooses that facility. The fee is a percentage of the first month’s rent and all facilities pay the same percentage.  Another resource, Medicare.gov’s Nursing Home Compare tool, compares skilled nursing facilities based on the quality of care each provides.

 

 

 

The National Association of Professional Geriatric Care Managers’ member directory provides links care managers in a given area. Professional geriatric care managers help families evaluate care options in selecting a senior care residence. Professional geriatric care managers charge on average$100 an hour.

 

Assess the needs and level of care services needed then create a list of facilities best meeting those needs and services.  Make sure each facility is properly licensed by checking your state’s health and human services department or Medicare.gov.  Use the Eldercare Locator site to contact information your local long-term-care ombudsman.  Ask the ombudsman if a given facility may have received any citations.  No facility is perfect.  Be alert to citations for significant lapses in patient care such as serious injury, neglect or error in medication management. Ask whether the properties have recently changed ownership or management.  A facility in transition is not a good choice.

 

 

 

4: Visit Facilities

 

Sound long term care facility research means personally visiting at least three facilities.  Be proactive: go in, walk around, meet residents, have a meal.   Schedule appointments to tour facilities and speak with the staff during the week.  An impromptu weekend visit is also a good idea.  How does the facility operate when the admin staff isn’t present?

 

What to look for:

 

Be aware of overall cleanliness.  Is ‘clean’ really clean?

 

Trust the senses.  Are there strong, offensive odors in common areas or emanating from residents’ rooms?

 

Observe the residents.  Are they in common areas and are they active?  If not, where are they are and what are they doing?

 

Watch employees. Do they smile and say hello?  Do they clearly enjoy their jobs?  Do they encourage residents to participate in activities by command or social invitation?  Are nurses behind their stations or are they engaged with residents?

 

Observe an activity. The facility should post a list of daily programs.  Make sure programs and activities actually take place.

 

Look at the physical setup. Does it look like a residence and not a hospital?   To create a more home-like setting, residents should be able to bring their own furniture and belongings.  Resident safety is of the greatest importance: confirm the facility is secure.   Memory care facilities require a simple floor plan, typically one with a single hallway encircling a common area.  Active decorative elements encourage positive attitudes:  Aquariums, caged birds, potted plants and gardens give residents a reason to smile.

 

 

Important Questions:

 

Is a particular care facility able to meet the needs required?   What are those specific needs?  Be open and honest in discussing the needs required.

 

What are basic monthly costs?  Are there added costs should a resident require extra help with medications or incontinence?  Levels of care vary and additional help may bring additional costs.  Some facilities may charge a community fee or one-time payment covering the administrative cost of moving someone into the facility and making a room ready for that person.  Is that refundable should the resident not to stay?

 

What kinds of activities are provided?

Are there on-site or off-site religious services?

 

What is the caregiver-to-resident ratio? Ideally, the ratio is not less than 1 to 15 for assisted living and 1 to 8 for memory care.

 

What conditions necessitate a resident’s moving to another level of care?

 

Are doctors regularly visiting the residence?

 

Is the staff regularly trained in Alzheimer’s and dementia care?

 

Is the facility licensed to provide dementia care?  Is there a dedicated dementia care unit with a dementia daily routine?

 

Are residents happy living there? Ask visiting friends or family who might be visiting their thoughts about the facility. First and always: trust your instincts. If something doesn’t feel right, it probably isn’t right. 

Happy Hunting!