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Paying for Assisted Living, Costs, Insurance, VA Benefits, and Smart Ways to Plan

The cost question is the one that keeps families up at night. Not because they do not want great care, but because they do not want to make a rushed decision, sell the wrong asset too fast, or miss benefits they already earned. This guide breaks down how to pay for assisted living in a practical way. You will learn what assisted living costs typically include, the most common funding sources, what Medicare and Medi-Cal can and cannot do, and a step-by-step approach to build a plan that actually holds up in real life. If you are comparing options now, start by exploring assisted living in Orange County and our broader assisted living services to see what support can look like across different levels of need.
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Tips for Selling Your Home to Pay for Assisted Living

For many seniors, selling a long-time home is one of the most effective ways to pay for assisted living. Years of homeownership often mean significant equity, and once a move is made, maintaining an empty or underused house rarely makes sense financially or emotionally. At the same time, selling a home during a major life transition can feel overwhelming. The process touches finances, emotions, family dynamics, and timing. This guide is designed to help seniors and families approach the sale thoughtfully, avoid common mistakes, and move forward with confidence. If you are exploring care options alongside financial planning, our team is available through our contact page and you can explore Raya’s Paradise communities to understand next steps.
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A Will, A Living Will, A Living Trust…What is the Difference?

Three important legal documents that every adult should have are a will, a living trust, and a living will.  Each document defines your decisions for the different areas of your estate and will save your loved ones time, money and stress when you are gone.  These documents are easy to draw up, or you could have a lawyer prepare the documents for a nominal fee.

A WILL dictates how your estate and property is to be distributed after your death and can also designate guardians for children and self should you become incapable or pass away. A regular will must pass through probate court in most states before your estate can be passed on to your heirs. Most state laws do not require that you use a lawyer to prepare your will; you can use a will kit at home.  Probate court can take some time if there are any disputes, so make sure your wishes are clear when writing your will. A LIVING WILL defines your wish to be kept or not kept alive by artificial life support in the event of terminal illness or injury. A living will also give you the ability to set limits on your hospital, medical and funeral costs that can easily drain your estate and leave your loved ones with the bills. If you express your wishes beforehand, it will make the process much less stressful for those involved in your care and the execution of your final wishes. A LIVING TRUST is quite similar to a regular will, but they are different at the core.  Unlike a regular will that cannot be changed after it is written, a living trust can be amended at any time.  A living trust takes effect while you are alive, whereas a will takes effect after you pass. You can put property into your living trust at any time before your death and afterward your estate goes directly to your heirs without passing through probate court. If you ever change your mind about the definitions of your will, you can change or revoke how your estate will be divided at any time by using a living trust. A living trust will also save money and time later on because your loved ones won’t have to go through probate first.
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End-of-Year Tax Tips for Caregivers

With everything going on in December, taxes are the last thing we want to think about. But this is a crucial time if you’re looking to save some money when you send in returns in a few months. You probably already know to make sure you’ve used up your flexible spending account or to contribute to your IRA, but here are a few other things you can do during the year-end crunch.
  • Decide whether or not you (or your parents) will itemize deductions. Run the numbers to decide whether you’re better off taking the standard deduction (which is $5,950 for single filers or $11,900 for those who are married filing jointly). If you are going to itemize, look for opportunities to increase the amount of deductions before the year is over, since all deductions will lower your tax bill. For example, if you make a larger-than-usual donation to charity you’ll reap extra benefits. This may motivate you to do a little holiday cleaning, and take unused clothing or furniture to The Salvation Army or Goodwill. These organizations will provide you with a receipt, and you’ll be able to claim the item’s fair value as a deduction.
  • Make large gifts now. If you or your parents want to give someone a large cash gift, write the check and make sure it’s cashed before January 1. You can give as much as $13,000 to an individual without being required to pay gift tax.
  • Make an extra house payment. Here’s a trick for maximizing your deductions if you’ll be itemizing next year. Make your January mortgage payment early. As long as you mail it by December 31, the payment will qualify for this tax year.
  • Review medical expenses. How much have you and your parents paid for medical care out-of-pocket? If your medical expenses are greater than 7.5 percent of your adjusted gross income, you can deduct them on your tax return. If you are close, you may be able to find ways to get care or purchase supplies that will put you over the edge.
  • Consider claiming your parent as a dependent. If you pay more than 50% of your parent’s expenses, and their gross income is less than  $3,800 (not counting disability payments, tax-exempt income, or Social Security), you can claim them as a dependent. Again, if you’re just shy of qualifying, see if you can make up the gaps in the last few weeks of the year.
As always, be sure to check with your accountant before taking any of these steps.
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New eBook: How to Choose a Memory Care Facility

Free memory care ebookAre you searching for a memory care facility for your loved one, but aren’t sure where to start? Our new complimentary ebook, How to Choose a Memory Care Facility for Your Loved One, is a thorough resource that tells you everything you need to consider when making this important decision. Alzheimer’s disease and dementia are challenging conditions, both for patients and for their families. There comes a point when the care mom or dad needs goes beyond what adult children can provide on their own. It’s at this stage that families begin to seek out a place where their loved one can not only have their care needs met, but hopefully thrive as well. This guide covers the following:
  • What to look for regarding a facility’s environment, safety, staffing, quality of care, and policies.
  • A checklist of important details that can help you distinguish high-quality care homes from the rest.
  • How to identify signs that a facility has serious underlying problems.
  • Types of facilities that have dedicated staff and highly personalized care.
  • Important considerations when evaluating the cost of memory care.
This ebook is a free resource provided courtesy of Raya’s Paradise. We encourage you to share it with anyone you know who is looking for a memory care facility for a loved one. Click here to access the book in PDF format. For the best quality, we recommend that you download the file to your computer, rather than reading it in your browser.  
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Financial Mistakes to Watch for in Retirement

Board care for elderly can lead to financial mistakes during retirement.

Photo used under Creative Commons from bradipo.

While some people work and save for years so they can have a very comfortable lifestyle during their retirement years, others find  keeping their retirement nest egg intact to be a challenge. A 2010 survey conducted by Wells Fargo Bank revealed that more than a quarter of the American population has concerns about their finances for retirement. Thus, we’ve put together a short list of common financial blunders to avoid when you’re working to protect your valuable assets. Have a Clear Understanding of Medicare and Medicaid: While Medicare is a very valuable healthcare management program, many retirees do not have the best handle on what is – and is not – covered by Medicare. One of the most financially devastating challenges to your financial health in retirement years is the need to enter an assisted living facility. While Medicare does, in most instances, cover a short-term stay in a rehabilitation center, Medicare will not cover a long stay in assisted living since assisted living is not medical care. Unlike Medicare, the federally funded Medicaid program will cover long term care, but Medicaid is a program designed for seniors who have exhausted all their assets (for a considerable period of time) and is generally considered an absolute last resort option. Many assisted living facilities do not accept Medicaid. Make no mistake – just one serious health challenge faced in the absence of a long term care plan can wipe out years of financial planning. It can also leave you with little options should you face a second, or third, health challenge. If you do not have a long-term care plan, or if yours is not comprehensive enough, start planning for that rainy day now. Beware of Con Men: Today’s seniors grew up in a world that was more trusting and more caring. However, that innocence, along with the availability of funds and assets, makes them a huge target for the unscrupulous (to the tune of $2.6 billion annually). A good rule of thumb: if it sounds too good to be true, it is. Estate Planning 101: Most individuals recognize the importance of having a will in place to leave their assets to the beneficiaries they hold dear. However, wills are not a set-it-and-forget-it type of document, and depending on when the will was initially drafted, it may have to be amended more than once. Pay attention to major life changes you experience, such as divorce, the death of a beneficiary, a birth in your family, or adoption. Note: if your will’s executor passes away, run (don’t walk) to have a new one appointed. The general rule of thumb is to review and update your estate plan portfolio at least once a year (with, of course, revisions done in between when there’s a major change). Doing so will help you notice when your documents have become outdated. Enlist the Help of Professional Estate Planners: While most family members mean well, the fact is that retirement planning is a specialized field best handled by professionals. Unless you have a family member who is both trained and experienced in this field, not just dibble-dabbling and reading market trends, it is best to maintain a relationship with a trusted advisor. Having the input from family members is fine, but before acting on their opinions, be sure your financial planner agrees.
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