Loving Well Through Estate Planning

For many people, retirement is not just about leaving the workforce; its about starting a new chapter. That new chapter often comes with the question, Do we really need this much house? Downsizing can be a wonderful way to simplify, save, or even move closer to family. But the decision is about much more than just picking a smaller home. Its about ensuring that your financial life, taxes, and estate plan all align seamlessly with your new lifestyle. Here are seven important financial factors to keep in mind before you make the move:1. Housing costs are more than the listing priceIts easy to focus on the purchase price or rent, but housing costs also include location, safety, maintenance, and the overall feel of the community. Spending some time in a neighborhood before you commit can give you a better sense of what daily life will really cost. 2. State estate and inheritance taxesEvery state has its own rules. Some have no estate or inheritance taxes at all, while others have both. Moving just across a state line could make a big difference in what your loved ones ultimately receive. 3. State income taxesNine states currently dont impose a state income tax, which can sound appealing. But states without income taxes often make up for it in other ways, like higher property taxes or fees. A balanced perspective is key. 4. Property taxesProperty taxes vary widely and can significantly impact your monthly budget. Some states also offer senior discounts or exemptions, which are worth investigating before committing to a new home. 5. Retirement account and pension taxesNot all states treat retirement distributions the same way. Some tax withdrawals from IRAs and 401(k)s, while others dont. Pensions, including military pensions, are also taxed differently depending on where you live. 6. Social Security taxationMost states do not tax Social Security benefits, but a few do, often with income-based limits. Knowing this before you relocate can prevent unpleasant surprises. 7. Sales taxes arent the whole storyIt can be tempting to focus on states with no sales tax, but this is often less significant than property or income taxes. Looking at the big picture of overall taxation is always smarter. Bringing it all togetherDownsizing for retirement isnt just about real estate. Its a financial and legal decision too. At Bellomo & Associates, we help families look at the whole picture, from taxes to estate planning to long-term goals, so the decision feels less overwhelming and more empowering. If youre thinking about downsizing or relocating, now is the perfect time to review your estate plan and make sure it supports this next chapter of your life. 

There are many misconceptions and myths circulating throughout social media and internet about estate planning, specifically about wills and trusts. At Althaus Law, our estate planning attorneys are here to clear up the confusion and clean up the mess. Below are some of the most common myths we run into:1.      All I need is a simple will: Whoops, now my family is in probate and has to go to court. A will is just an instruction sheet for the judge to get through the court process. Sure, it may make the process go a little quicker and easier, but your family is still in court. There are plenty of other documents you can use to avoid the process altogether!2.      I should name multiple powers of attorney to act at the same time: Nope, it definitely is not a good idea to put more than one person to be in charge at the same time. It is a good idea to have one person and then multiple back-up people, but not people that have to act together. If they disagree, you are likely going to court.3.      I only need to name my spouse to be in charge in powers of attorney: No! While you should name your spouse, as mentioned above, you should also name backups to your spouse in case they are incapacitated or otherwise cant do the job.4.      Online plans are great: No, they arent. 5.      You can draft deeds by yourself without a lawyer: While you can legally do this, its a terrible idea. Your house is one of the most expensive assets you own. It is worth paying a lawyer to make sure you transfer title of it correctly, so it doesnt wind up in the wrong hands.6.      Trusts give you creditor protection: Not all of them. Its important to find out what ones do and do not.7.      Secrets are great: No! Dont keep your plan a secret. Everyone in the plan should know whats going on. If you have questions about any of these myths and want help with your will, trust, or other estate planning documents, give us a call at Althaus Law. 720-704-0145.

Don't Lose Your Life Savings to Long-Term Care Costs: Lifelines for Seniors and Their Families(1)   Medicaid: The A&D WaiverNavigating the high costs of long-term care can be incredibly stressful. We recently met a woman whose husband was paying thousands monthly for care. They were told he couldn't receive Medicaid help because their life savings, held in an annuity, were "too much." The advice they received was to cash it out and spend most of it, leaving very little for her.This is heartbreaking, but it's not always true that you have to spend everything you have. In this case, we made some important changes to their annuity. Within weeks, her husband was approved for Medicaid, even with the same savings! This allowed the wife to keep their nest egg while her husband received the care he needed.Are you facing similar concerns? You're not alone. Many families find it impossible to afford steep monthly care costs. It's especially tough when one spouse needs care, but they worry about using all their savings, potentially leaving the healthier spouse with nothing.The good news is that it is possible to get help paying for care without losing everything you've worked for. The key is understanding how to qualify for available programs and using the rules to your advantage. Another family was told to purchase a costly Medicaid Annuity, but the rules allowed their family to appeal their initial application and keep all their assets without any further steps. Medicaid has specific rules about assets and income. However, it also has provisions that can be used strategically to benefit the person who needs care and their family. Even if you believe your loved one won't qualify, don't assume the worst. As our examples demonstrate, a skilled elder law attorney can sometimes use Medicaid rules to help a person qualify before their money is gone. (2)   Help for Veterans and Their Spouses: The Aid & Attendance ProgramFor veterans and their spouses, the Aid and Attendance program can provide significant financial help for long-term care. A married veteran paying for care might qualify for up to $2,795.67 per month from the VA.To qualify, many veterans only need to have: Served at least 90 days active duty, with one day during a period of war. Received an honorable discharge. A service-connected disability is not required! While there are asset and income rules, don't give up if initially told you don't qualify. It's crucial to consult a VA-accredited elder law attorney. A knowledgeable advisor can often help families adjust their situation to become eligible.Don't Fall for Misconceptions Get the Right Advice!Many myths exist about long-term care and how to pay for it. Resources are available, but you often need proper planning and expert legal guidance. Even if you haven't planned far in advance, don't give up hope if discouraging advice comes from a friend or even another professional. Unfortunately, incorrect information is common.Your lifetime of hard work deserves protection. Find a qualified elder law attorney in Idaho who can help you understand your options and ensure your family's financial security.Joshua C. P. Reams, B.A., J.D., NAELAElder Law Attorney, VA AccreditedDavid J. Wilson, J.D., L.L.M., CELA Board Certified Elder Law Attorney