Donor-advised funds are a growing trend in giving that may get more popular due to the new tax law. These funds allow you to donate money, receive a charitable tax deduction, and continue to grow the money until you are ready to distribute it to a charity or charities of your choice. A donor-advised fund is…
A. My mother is in a nursing home here in California and is on Medi-Cal (Medicaid). My father has almost depleted his bank account and needs money for dental work. He has two life insurance policies (my mom is the beneficiary). One is for $25,000 and the other is for $10,000. He would like to…
Q. Can someone on Medicaid allow a grandchild to live in her house and not pay rent, just maintain the home? A. The answer will depend on the laws in your state. In Massachusetts, the answer is yes. The grandchild can stay in the house and just pay for maintenance. This may not be the…
Q. If an individual lives in an assisted living facility in one state (Minnesota) and her spouse lives in another state (Wisconsin), can they apply for Medicaid? If so, how is it determined which state’s laws will apply? A. Yes, spouses don’t have to live in the same state, so the Minnesota spouse can apply…
Question: My trustee claims that I insulted him in an email, which I did not. I believe he does not want to have to file income taxes on a special needs trust and used this as an excuse to bow out of his role as trustee. He informed me that he has taken all the…
My mother is 81 and was diagnosed with mild dementia. She has named my brother and me as co-agents under a durable power of attorney. I will be the one to move in with my mom as her dementia gets worse and will make all the arrangements for any type of care. I think it’s…
While the 2017 federal tax cut means most estates won’t be subject to the federal estate tax in 2018 and 2019, state estate tax is a different matter. Some states are not going along with the increase in the federal estate tax exemption. In 2017, Republicans in Congress and President Trump doubled the federal estate…
How frequently you should review your estate plan depends on how old you are and whether there has been a significant change in your circumstances. If you are over age 60 and you haven’t updated your estate plan in many decades, it’s almost certain that you need to update your documents. After that, you should…
Paying for day care is one of the biggest expenses faced by working adults with young children, a dependent parent, or a child with a disability, but there is a tax credit available to help working caregivers defray the costs of day care (called “adult day care” in the case of the elderly). In order to qualify…
Question: My estranged father passed away in November 2016. I am still waiting for the estate to be settled. How long does this generally take? Answer: It shouldn’t take that long. One year is a good rule of thumb. It takes time to take care of all the details, including distributing tangible property – artwork,…
