Estate And Trusts: Elder Issues
What are "entitlement programs"?
Elder entitlement programs are mostly at the federal level, though not entirely so. The two most prominent entitlement programs are the Social Security System and the Medicare System, which is related to the Social Security System. The Social Security System provides for retirement benefits after a particular age based upon the years of employment and contributions to Social Security. Medicare is a medical entitlement program which provides an insurance plan, available to people after age 62 for conventional medical care.
How does entitlement income fit into my overall estate plan?
To the extent that a client is trying to determine what resources will be available to him or her after retirement, for the rest of his or her life, Social Security and Medicare - entitlement - can be a very important component. The reason is, Social security and Medicare will always be there and the Social Security will supplement any other income or liquidity resources that are available to the client. As an entitlemet, Medicare will reduce or eliminate medical expenses which are often one of the greatest costs of growing older.
Can my Social Security income be taxed?
Social Security income can be and is taxable under certain circumstances. I know that it is totally taxable and offset by your other income from age 62-65. At age 65 there is a taxable component of Social Security income and I believe that at age 70 Social Security becomes totally tax free. I do recommend that anyone who is concerned about the taxability of Social Security speak to some one who knows more than I do about that subject.
How do I protect my assets before moving to a nursing home?
Protection of assets can mean different things. Protecting your assets before you go into an assisted living facility in order to ensure that they are managed properly is one goal. That goal can be reached by giving someone else the ability to manage your assets by conferring upon that person, by a power of attorney, the power to do so, or by giving the trusteeship of your living trust over to your successor trustee so that the management can be done through the trust vehicle.
