Are You Prepared for the Ending of Your Life's Story?

Su Swanne, Realtor - GRI, CSHP, SRES

Graduate, Realtor Institute

Certified Senior Housing Professional

Senior Real Estate Specialist

CALL 520-248-6297

Are you prepared for “The Inevitable?”  No matter what age you are, have you taken some time to think about your needs at the end of your life? 

As a Realtor who specializes in working with Senior clients I find that much of my work involves educating them about many of the issues they may be facing. One of those issues is making decisions and planning ahead for the times of possible confusion and chaos.

I remember an animated cartoon from years ago where a parachutist has jumped out of a plane. The narrator keeps reminding him to open the cute, and he keeps saying, “I’ve got plenty of time”. You know how it ends!

While we are faced by the same inevitable ending as the parachutist, we can prepare for a softer landing. That is, if we do it now, and not wait, because we think we have plenty of time.

In a recent Merrill Lynch retirement study:

● 70% of children 25+ haven’t discussed financial, retirement, health, or inheritance plans with their parents.

● 56% of parents over 50 have not discussed their plans with their children.

● 28% of those married haven’t discussed their plans with their spouse.

● Only 24% of siblings have discussed how their parents will be provided for.

The conversation seems to not take place until the death or illness of a family member or friend. Why? Often it’s fear of family conflict. For example Johnny doesn’t want to fight with Susie over some treasured belonging of their parents, or over what they perceive as part of their inheritance. My mother was smart. She met with me and my siblings as a group and we made lists of what we wanted. After she passed we found those lists and we used them to determine where things went.

Another reason that conversation is not faced is because it’s too painful. We don’t want to think about our loved ones facing the end of their lives; and we certainly don’t like the discomfort of facing our own demise. I have personally experienced this with my family. They live on the East Coast and have their own lives. They love me - yet I know they don’t want to discuss the fact that my life will one day be over. They have received my paperwork; we still haven’t had the conversation.

TODAY I’m asking you to consider stepping out of your comfort zone to think about and ACT on how you want to create the best ending to your life’s story. While the issues of growing older can be complex, there are some steps you can take at whatever age you are to protect your health and financial assets.

First,you can consider Advanced Directives that document your desires for your care when you are unable to speak for yourself. You can designate someone you trust to make decisions about your treatment and/or care in your stead. You don’t need to be “old” to need this. If you live in Arizona you can find

the necessary documents online on the Arizona Attorney General's’ website or on the Arizona page of the AARP website. You can file the completed documents online with the Arizona Attorney General’s website for access by your doctor or representative.

Next, you might have a will drawn up that delineates how you want any assets distributed. If you have multiple assets you may need to speak with a financial planner, tax adviser or estate planning professional about tax reduction and trusts. Consider that the money you spend up front for these services can save you money later.

Regarding final expenses, I’m sure you’ve seen the ads for taking out life insurance that can cover the costs of burial, credit card debt, and so forth. If you think this is a good idea for you, do it. Consider offering your body to medical science, or contacting the Neptune Society.

Too many people wait until they are in a crisis to make appropriate plans. That’s the time that mistakes are more likely.

We each must take responsibility for ourselves and our decisions. Do you want to make the choices and make a plan for yourself? Or have someone else - the State - choose for you? Do you want your family to be faced with the chaos of finding your important papers and instructions? Make it easy for them. Too many times a female spouse is left with no idea of the nature of her and her husband’s financial assets.

Are you prepared? You don’t know whether you have plenty of time...Don’t wait! Make a plan TODAY!

Sponsor of the Tucson SPOTLIGHT Senior Services & Living Options Guide.

Call us today and say "I saw you in SPOTLIGHT!"

What Is The Cost Of Dying?

You’ve worked hard your whole life and are enjoying your retirement. Your financial planner and Tucson estate planning attorney have worked together to ensure you have living expenses covered by pensions and retirement investments, and when the time comes, you’re able to afford the cost of dying to pay medical and funeral expenses.

Cost of Dying and Cost of Living

Not surprising, the cost of dying in each state is in direct correlation to the cost of living. For example, Mississippi is the least expensive state in which to die at an average funeral cost of $5,166 versus the national median of $6,078. It should come as no surprise that Mississippi also has the lowest cost of living. [Source]

In Arizona, the cost of living is just about 2% less than the national average, while healthcare is about 1% more and housing is 2.8% under the average. [Source]  The average out-of-pocket, end-of-life medical expenses are $11,618, while the average funeral expenses are $6,078. [Source] Without proper planning, these expenses can leave your family in debt, which makes it important to have an estate plan in place.

This is in contrast to the most expensive place to live and die – Hawaii. While it’s a beautiful state to visit, the cost of dying is the highest in the nation, nearly double our home state. Funeral costs are an average of $11,408 and the end-of-life care average is $21,807.

Whether you’re in Arizona, Hawaii, or another state, it’s important to plan ahead so your family isn’t left paying the debt with proceeds from the sale of your assets.

Impact on Financial and Estate Planning

There is currently a federal estate tax that applies to a relatively small amount of the population—those whose estate is valued over $5.49 million. When it comes to Arizona estate planning, there is no state estate tax or inheritance tax, which can potentially save your heirs thousands of dollars. We encourage you to speak to Kinghorn Heritage Law Group to understand how your assets can be protected and end‑of‑life expenses can be covered. In our meeting we will discuss:

• Your current estate plan. Often we meet with people who think they need to have millions of dollars in assets to establish a Trust, so they only have a Will. While a Will is better than no plan at all, a Trust will provide tools for estate preservation and asset protection as well as provisions for disabilities, an important need that often gets overlooked. In addition to a Trust, powers of attorney and living wills are essential parts of an estate plan.
• Your family. We want to create a plan that protects what is most important to you.
• Your wishes. It saves families stress when they understand their loved one’s wishes. If you want your grandson to have your antique golf clubs, then let’s make that part of your plan.

Whether it’s passing down family heirlooms or making sure you can afford the cost of dying, the Kinghorn Heritage team is here to help. Contact us today to schedule a complimentary consultation.

Sponsor of the SPOTLIGHT Senior Services & Living Options Resource Guide 

Visit us online today or call and say "I saw you in SPOTLIGHT!" 
https://heritagelawaz.com/

Preserving Resources for Well-Spouse

Preserving Resources for Well-Spouse

Question: I was told that my ALTCS application was denied because I, the “well spouse”, had more than the one-half of the marital resources that ALTCS allows a well spouse to keep.  We are now in the process of reapplying, but now that I have spent my spouse’s one-half, I will also spend much of my spouse’s one-half during the months in which the new application processes.  Could this dilemma been prevented?

Answer: Given that ALTCS can take several months to process an application, the issue of who will pay for care while the application processes oftentimes arises.  In cases in which the applicant is married, the concerns are at least two-fold:  Obtaining care for the applicant is of paramount importance, but it is also critical that the well spouse preserves enough funds to sustain the quality of life to which he or she is accustomed.

The best way to preserve resources for a well spouse is to make sure that everything is in order before submitting the application.  It could take ALTCS several months to process an application, whether or not the application is ultimately approved.  And if ALTCS denies the application, you will have lost those months in which the application processed, and have to start the process anew.

While the general rule is that a well spouse can keep about one-half of the marital assets, there are oftentimes planning strategies to help the well-spouse maximize his or her resources.  But here again, the best way for a well spouse to accomplish this goal is to be proactive and engage in planning well before submitting the application to ALTCS.

For more information about Jackson White Elder Law, or to download any of their free resources, feel free to visit us at:  http://www.arizonaseniorlaw.com/resource,  http://www.arizonalongtermcare.com  or
http://www.myAltcs.com