Do you know that there are wide ranging personal finance and tax saving opportunities that only a professional adviser is likely to be aware of. The staff at Spring Arbor Living would like to point out a few of the not so commonly known proactive measures that you can take to ease the cost burden of assisted living serves. If you are either the benefactor of assisted living services OR financially contributing to the same, you owe it to yourself to speak with a professional tax attorney about the implications on your Federal and State tax burden. Under the federal Health Insurance Portability and Accountability Act (the "HIPAA"), seniors may be eligible to deduct portions or all of assisted living costs as a medical expense on their Federal tax returns. ALL costs related to senior care may be deductible if the resident is unable to perform (without substantial assistance) at least two activities of daily living, such as eating, bathing, dressing, etc. It can also apply to seniors who require substantial supervision to protect the individual from himself or herself because of severe cognitive impairment. Again, we encourage you to discuss the subject of assisted living expense with an certified tax law professional.
For those of you financing a loved one’s assisted living, that is not reimbursed please realize that elder care medical expenses above 7.5 percent of adult children's adjusted gross income may be tax-deductible. You can and should contact your tax attorney or directly contact the e Internal Revenue Service.
For those who have or are about to enter resident assisted living, very often there is an emotional attachment to the family home that they are vacating. Children can consider buying it from their senior parents and even carry back the mortgage of the parent to increase the parents fixed income. If the family wants a formal loan structure, consider looking online or if you have a family financial adviser they can handle the paperwork and collection of payments, etc.
Of course financial matters are very private in most families. Don't be insulted if your parents refuse to share the details of their money while they retain full control. Do guide them to seek reputable guidance. If there is no family financial adviser you can find a very skilled and reputable financial planner through the National Association of Personal Financial Advisers (www.napfa.org) who can provide a second opinion and peace of mind for lifelong do-it yourself investors.