More Changes On The Estate Planning Front

A jar of coins with the word retirement written on it.


The I.R.S. is giving widows and widowers more time to deal with complicated estates after one spouse dies.  Typically, when one spouse dies, the other one gets all or part of the estate tax-free.  The surviving spouse can also carry over the deceased’s unused estate tax exclusion if they file an estate tax return and choose what the IRS terms “portability.â€Â  Previously, a surviving spouse had only 15 months to file the return.  Under new rules, however, the window for filing was extended to two years in 2017 and then last week it was raised again to five years.  Talk to your tax accountant if you have any questions about the new rule.

Carmel, CA Family Caregivers May Soon Get A Tax Credit Of Up To $5K

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A bill which is working its way through both houses of Congress would give a much-needed financial break to 48 million family caregivers in America who struggle every day as they care for a loved one.  I know the feeling well, I cared for my grandmother in my own home over five years until she passed away just shy of her 98th birthday.  She had Alzheimer’s disease and was quite a handful.  However, it was very fulfilling personally to be able to be there as she struggled in her final years.  If you face a similar situation, please contact our local chapter of the Alzheimer’s Association in Ryan Ranch.  They have some wonderful people and there is also a 24-hour hotline where you can speak to someone compassionate when you are struggling at 800-272-3900.  Thankfully, The Credit for Caring Act which was introduced back in May in the U.S. Senate looks likely to pass, and it will give a tax credit of up to $5K to working family caregivers.  It would give eligible family members a 30% credit for qualified expenses above $2K, paying for things like home care aides, adult day care, respite care and home modifications like ramps and smart technology to make your home safer.

https://www.aarp.org/caregiving/financial-legal/info-2021/new-credit-for-caring-act.html

President Joe Biden’s Medicaid Plan Helps Family Caregivers : By Derek Baine

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President Joe Biden has an ambitious plan to help seniors, including asking Congress to lower the age of Medicare eligibility to 60, and a $450 billion fund to help family caregivers over the next ten years.  The latter would include a $5,000 tax credit for caregivers, and should reduce waiting lists for in-home and community-based care.