Be Anxious No More Talk to Us About End-of-Life Care Options!
Of Your Grandchild's Education Don’t Let Money Get in theWay
The United States is getting older. What we mean by that is more advances in medicine and elder care mean people who live in the United States are creating a larger population of people 65 and up than ever before. Such a drastic change in our population makeup means that end-of-life care costs are going up, and many senior adults risk being left without a solid end-of- life plan if they don’t take the changing elder care landscape into account. Many people plan well for retirement and end-of-life care. They stock away what should be adequate funds for life after work, but many do not account for outliving the funds they have saved. This is becoming increasingly common as more medicines and procedures help our bodies live longer — sometimes longer than our minds. End-of-life care can mean you or your loved ones are looking at a pretty expensive bill, but it doesn’t have to be that way. When it comes to making sure all your potential end-of-life costs are covered, you can take three basic routes: You pay the costs out of pocket, go through an insurance plan, or try to qualify for Medicare. In other words, you pay for it, your insurance provider pays for it, or the government pays for it. If you have deep enough pockets to go with the first option, you are lucky. But if you’re like most people, you’ll probably need to go with option two or three. Different insurance plans and legislation regarding Medicare eligibility emerge every day, and we don’t have enough space here to get into the technicalities of all the latest payment options available to you. However, we can help navigate these waters. You might be afraid or anxious about the looming costs of elder care, but you don’t have to be. Call or come into our office today for a free consultation.
College expenses aren’t what they used to be. What used to be affordable to any student with a part-time summer job now can take years to pay off. If your grandkids want to go to college, the cost of education should not be a barrier to their future. Luckily there are ways that you can help ease that financial burden. INVEST IN A 529 SAVINGS PLAN. There are no limits on age, income, or monetary contributions attached to this college savings account, and contributions are tax-deductible in some states. Just like a Roth IRA, the earnings grow over time and can be used tax-free for qualifying expenses, like tuition and room and board. There are a few downsides, however. Funds from a grandparent’s 529 savings plan are considered student income and could hurt your student’s eligibility for financial aid. If you choose to fund through a parent’s 529 savings plan, which doesn’t count as student income, you lose control over the funds you contribute. PAY THEIR TUITION. Not everybody has $20,000 just lying around, but if you do, using it to pay for your grandchild’s tuition isn’t a bad way to spend it. Normally, annual financial gifts that are exempt from the federal gift tax can’t exceed $15,000, but payments toward someone’s tuition, for any amount, are not taxed. Keep in mind, however, that the money can only go toward tuition, not toward other college expenses like room and board or textbooks. HELP THEM FIND OPPORTUNITIES TO SAVE. Even if you don’t have thousands of dollars to give, you can still help your grandkids look for other opportunities to save. There are thousands of available scholarships, grants, and programs to help students pay for college, and helping them look online and in your community can go a long way. College could be your grandchild’s first stop on the path to achieving their dreams. You can be a part of that journey by making sure money doesn’t get in the way of that.
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Trusts • Probate • Long Term Care Planning • Elder Law
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