Protecting Your Legacy

Protecting Your Family and Your Legacy

When Pablo Picasso died in 1973 at the age of 91, he left behind five houses, cash, gold, bonds, and artwork. Because he didn’t have a will, it cost $30 million dollars and took six years for his assets to be divided among his heirs.

Unfortunately, Picasso wasn’t unusual in neglecting to plan for the inevitable. Many people don’t have a will, let alone an integrated plan designed to safeguard your estate, the people you love, and future generations.

AN ESTATE PLAN SERVES FOUR MAJOR PURPOSES:

  1. Directs who will receive your property when you die.
  2. Minimizes probate costs and any estate taxes that might be owed on that property.
  3. Provides for the care of minors – otherwise the state will become their guardians.
  4. Provides for your care if you are unable to provide for yourself. A proper plan ensures that you get to
    pick the caregivers, not the state.

People often find the first issue most critical – ensuring that your assets go to the people you choose.

    • Property you hold in joint tenancy with someone will go to that person, typically your spouse.
    • Beneficiaries named in your insurance policy, individual retirement accounts (IRA), or your qualified retirement
      plan at work will receive that property.
    • But, if you die intestate – without a will – your local probate court will decide who receives any property you
      hold solely in your name.

What if you want some of your property to go to friends, relatives, or children from a previous marriage?

For example, you want your friend Evelyn to get your teacup collection and son Jack to get your golf clubs. A will and letter of instructions can specify who receives what, so that your heirs aren’t left feuding over property.

Without a will and perhaps the use of a trust, your spouse could end up with everything. That may sound great, but your property could later end up in the hands of someone your spouse marries or their heirs, not in the hands of your friend or the children from your previous marriage.

What if you are widowed or divorced or want one child to receive the bulk of your property?

Perhaps you have a child who is disabled who you want to be sure is taken care of. Or maybe one child is a poor manager of money or is facing divorce. Without a will, many probate courts would distribute your assets equally to your heirs.

Without an estate plan, not only might the wrong heirs end up with your property, the federal and state government could end up with a good chunk of it. Whereas relatively simple trusts such as a bypass trust or an irrevocable life insurance trust can help shield the assets from taxes, or at least help pay the taxes with a minimum of cost.

Not convinced you have a large enough estate to worry about?

Think again. Many people think about the estate taxes when they think of an estate plan, and don’t draw one up because they don’t think they have an estate large enough to be taxed. But these days, with qualified retirement plans, IRAs, stock options, life insurance, and homes fluctuating in value, more and more families are finding themselves vulnerable to federal and state estate taxes. You can pass your property to your spouse tax-free, but that is only postponing the tax bite.
The government will collect when he or she dies.

We put off estate planning for any number of good reasons – we’re young and don’t think we need one yet, we don’t want to deal with something that means thinking about dying, we dread the thought of working with a lawyer, or we just don’t realize the impact of going without one. But it’s never too early to start a plan to help preserve, protect and transfer your assets to the people and organizations you care about.

NOT A CORNERSTONE CLIENT?

If you have questions about your financial plan please contact us today to schedule a complimentary, no obligation review with one of our advisors. Call 605.357.8553 or email cfsteam@mycfsgroup.com.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Sources:
9 Famous People Who Died Without a Will, https://www.legalzoom.com/articles/10-famous-people-who-died-without-a-will
Will(ful) Neglect: Survey Reveals Nearly 60% of Americans Unprepared for the Inevitable, https://finance.yahoo.com/news/ful-neglect-survey-reveals-nearly-130400538

Confusion over RMD Distribution

Confusion Over Required Minimum Distributions (RMDs)

Cornerstone is pleased to bring you this article by Ed Slott and Company, LLC, an organization providing IRA education and analysis to financial advisors, institutions, consumers, and media across the country. Our association with this organization helps us stay up to date on the latest developments in IRA and tax law. As always, give us a call if you’d like to discuss!

To the surprise of many, the IRS released proposed SECURE Act regulations last year requiring beneficiaries (on some occasions) to take required minimum distributions (RMDs) during the 10-year payout period.

In the past, most non-spouse beneficiaries could “stretch” RMDs from inherited accounts over their own single life expectancy. RMD rules for 2023 are more confusing, thanks to the 2019 SECURE Act passed by Congress, and IRS proposed regulations of Feb. 23, 2022.

The 2019 SECURE Act included the 10-year payout rule, requiring most retirement account beneficiaries for deaths in 2020 or later to empty the retirement account by the end of the 10th year following the year the account owner died.

The IRS issued proposed regulations on February 23, 2022, taking the position that when death occurs on or after the required beginning date (RBD), a non-eligible designated beneficiary must take annual RMDs and empty the account under the 10-year rule.

The rule requiring annual RMDs when an account owner dies on or after her RBD is sometimes called the “at least as rapidly” (ALAR) rule. While it does not require the beneficiary takes the same amount that the IRA owner was taking, it does require that the process of taking RMDs continue. This interpretation surprised many who thought the 10-year rule would apply like the pre-SECURE Act 5-year rule, which did not require annual RMDs.

 

How has the IRS responded to RMD confusion?

The IRS has waived some RMD penalties when certain beneficiaries fail to take an RMD due to a reasonable error. Waivers are only applicable to RMDs within the 10- year period and you are usually required to file Form 5329 to request a waiver. For 2023, SECURE 2.0 reduces the penalty from 50% to 25% of the amount not taken. The penalty is further reduced to 10% if the missed RMD is taken and the penalty is paid during a 2-year correction window.

Last year, the IRS issued Notice 2022-53, which waived penalties for missed 2021 and 2022 RMDs within the 10-year period, for deaths that occurred in 2020 or 2021. Recently, the Service released Notice 2023- 54, extending the penalty waiver to cover missed 2023 RMDs when the death occurred in 2020 or 2021. It also excuses the penalty for missed 2023 RMDs when the death took place in 2022.

Although the Notice does not state this directly, it appears that since the penalty is waived, the 2023 RMD, like 2021 and 2022 RMDs within the 10-year period, doesn’t have to be taken. It also appears that these missed RMDs within the 10-year period will not have to be made up. (Note that if these RMDs were already withdrawn, they cannot be returned or rolled over.)

Example:

Lola died in 2020 at age 75 with a traditional IRA. Her adult daughter, Anabella, is a non-eligible designated beneficiary subject to the 10-year rule under the SECURE Act.

WHY?  The proposed regulations say that because Lola died after her RBD, Anabella must take RMDs based on her single life expectancy during years 1-9 of the 10-year period. However, Notice 2022-53 says that if Anabella failed to do so for 2021 and 2022, there is no penalty on the missed RMDs. Notice 2023-54 extends this relief to the 2023 RMD. If Anabella had already taken a distribution, believing she needed to take an RMD for 2023, she may not roll over those funds. Notice 2023-54 also provides relief to successor beneficiaries subject to RMDs within the 10-year rule.

Example:

Dave died in 2019 at age 90 with a traditional IRA. As designated beneficiary his adult son, Russell, can take annual RMDs from the IRA because Dave died before the SECURE Act became effective.

Russell dies in 2020. His son Theodore, the successor beneficiary, is subject to the SECURE Act and the 10-year rule, and must also take RMDs based on Russell’s single life expectancy during years 1-9 of the 10-year period. However, Notice 2022-53 said that if Theodore failed to take his 2021 or 2022 RMD, there would be no penalty. Notice 2023-54 extends this relief to 2023 RMDs. Beneficiaries who inherited a Roth IRA do not need this relief. Under the IRS proposed regulations, anyone who inherits a Roth IRA is deemed to have inherited from a person who died before his RBD. This is because Roth IRA owners are not subject to lifetime RMDs. Most Roth IRA beneficiaries are still subject to the 10-year rule, but RMDs are not required for years 1-9.

 

Does Notice 2023-54 waive all RMDs for 2023?

No. The Notice doesn’t affect lifetime RMDs, inherited IRAs by eligible designated beneficiaries (EDBs), or RMDs by beneficiaries who inherited before 2020.

Example: Monica has an IRA. She is 80 years old and must take a lifetime RMD for 2023. If Monica fails to do so, Notice 2023-54 doesn’t provide any relief from the penalty.

Example: Arthur inherited an IRA from his mother in 2018. Arthur has been taking RMDs each year based on his single life expectancy. Because he inherited prior to the SECURE Act, Arthur can continue the stretch. However, if he fails to take an RMD in 2023, Notice 2023- 54 does not relieve him from the penalty.

 

Should every beneficiary who is eligible for the IRS relief skip their RMD for 2023?

Anyone who is eligible for this relief also has the 10-year deadline looming. So, while it may be tempting to skip an RMD for 2023, that could mean more pain later when a big tax bill comes due at the end of the 10-year holding period.

 

Does the recent guidance tell us what will happen with RMDs during the 10-year period in the future?

The IRS is not tipping its hand. The latest notice says, “Final regulations regarding RMDs will apply for calendar years beginning no earlier than 2024.” Hopefully, those final regulations will arrive sooner rather than later and offer clear direction.

 

Which IRA owners get more time to complete a rollover?

While Notice 2023-54 mainly addressed RMD confusion during the 10-year rule for beneficiaries, it also provided very targeted relief to a specific group of IRA owners — those born in 1951. The Notice extends the 60-day rollover deadline for these IRA and plan account owners affected by the SECURE 2.0 increase in the first RMD age from 72 to 73.

Under the old rule, the first RMD year for account owners born in 1951 would have been 2023. Under SECURE 2.0 it is now 2024.

Some IRA custodians and plan administrators inadvertently paid out “RMDs” in 2023 to these people. Because these weren’t technically RMDs, and the account owners may not have wanted them, the IRS gives these account owners additional time (beyond the usual 60-day period) to roll back distributions received between January 1, 2023, and July 31, 2023. The extended deadline is September 30, 2023.

Such a rollover will not violate the once-per-year IRA rollover rule if another distribution was received by the individual in the last 12 months that was also rolled over. It will start a new 12-month period that will preclude a distribution received in the next 12 months from being rolled over.

Example: Mick reached age 72 in 2023. He was unaware that SECURE 2.0 delayed the RMD age to 73. On January 10, 2023, he took a distribution from his IRA, believing he needed to take an RMD for 2023. Mick realized his error a few weeks later. Mick has until September 30, 2023, to roll over this distribution if he so chooses. If Mick had already done a rollover of another distribution received in the last 12 months, that will not preclude him from rolling over the 2023 RMD distribution “mistake.” However, going forward, any distribution Mick takes from any IRA before January 10, 2024, will not be rollover eligible.

Membership in Ed Slott’s Elite IRA Advisor Group™  is one of the tools our advisors use to help you avoid unnecessary taxes and fees on your retirement dollars. Gordon attends in-depth technical training on advanced retirement account planning strategies and estate planning techniques. And semiannual workshops analyzing the most recent tax law changes, case studies, private letter rulings, Congressional action and Supreme Court rulings help keep attendees on the cutting-edge of retirement, tax law and IRA distribution planning. Through his membership, Gordon is immediately notified of changes to the tax code and updates on retirement planning, and he has 24/7 access to Ed Slott and Company LLC to confer with on complex cases.

This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. Changes in tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Copyright ©2023, Ed Slott and Company, LLC Reprinted from The Slott Report, August 14, 2023 with permission. https://www.irahelp.com/slottreport/rmd-relief-no-thank-you. Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article. Raymond James is not affiliated and does not endorse Ed Slott and Company, LLC, The Slott Report, The Elite Advisor Group™, or Sarah Brenner, JD.

CSP #328338 Exp 11.7.24

Are you Retirement Ready?

Are You Retirement Ready?

When it comes to living the life you imagine in retirement, the earlier you prepare, the better your chances of reaching your goals. Just like planning a wedding or building a new home, there are a lot of decisions to make and variables to consider.

Find out where you stand with our Retirement Readiness Checklist. Don’t panic if you’re just getting started or have a lot left to do. Our team’s step-by-step process, the Cornerstone Experience®, provides one-on-one attention and guidance to help you enjoy life today and take care of the people you care about for the long-term.

FINANCIAL

Where will your monthly retirement income come from?

79% of workers plan to keep working in retirement, while 34% of retirees actually do work in retirement.1

Work $_________
Assets $_________
Social Security $_________
Insurance $________
Pensions $_________
Other (inheritance, etc.) $_________

 

Do you know how much you’ll need for living expenses when you retire?

I know what my monthly essential expenses will be: $_________
I know what my monthly extra expenses will be: $_________

 

Do you have a contingency plan to take care of yourself and those you love if you can’t work as long as you intend to at your current position?

46% of retirees leave the workforce earlier than planned because of a hardship, such as a health problem or disability. Another 31% say they retired due to changes at their company.1  

Yes
No

 

How will you handle healthcare costs?

While it’s impossible to precisely predict out-of-pocket expenses, a retired couple can easily spend $10,000 a year above and beyond what’s covered by traditional Medicare.2

Medicare
Long-term care insurance
Health Savings Account (HSA)

LEGACY

Are you planning to provide for others or do any charitable giving during your retirement or after you’re gone?

College fund for heirs
Gift to charitable organization(s)
Inheritance

Which essential documents do you have in place to ensure your wishes are carried out if something were to happen to you?

Trust
Living will
Power of attorney
Medical power of attorney
Will
Ethical will
Personal property memorandum or disposal list
Organized records, including contact information for your attorney, wealth advisor, tax advisor, etc


Are you planning to
provide for others or do any charitable giving during your retirement or after you’re gone?

 College fund for children/grandchildren
 Leave an inheritance
 Gift to charitable organization(s

 

Have you communicated your wishes to the people responsible for carrying them out?  

Guardian
Executor
Family

LIFESTYLE

What will you do with your time?

 Travel
 Work part time
 Volunteer
 Spend time with grandkids
 Master a hobby or start a new one
 Take classes or go back to school
 Keep doing activities I’m currently doing

Is there anything you’ve always wanted to do “if you had the time” or if money was no object?

Have you always wanted to own your own plane? Do you feel called to volunteer building housing in Rwanda? Did you miss your true calling of being a kindergarten teacher or university professor? Lawyer or social worker? Anything is possible with the right plan and support! ______________________________________________________

___________________________________________________________

Who will you spend your time with?

 Current group of friends
 Plan to meet new friends
 Continue attending professional groups I’m involved with
 Join a new organization
 Time with family will keep me busy

Download The Questionnaire

The pdf opens right away after you enter info and hit “Download the Questionnaire.”


1 2023 Retirement Confidence Survey, Employee Benefit Research Institute and Greenwald Research
2 Ready to Transition to Retirement, Raymond James, March 2019

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A basic understanding of estate planning can help you preserve your assets, take care of the people who are important to you, potentially reduce taxes, and avoid common mistakes.

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Keeping your tax liability to a minimum is an essential part of maintaining your Cornerstone financial plan.

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Our advisors will help design a strategy that is clearly defined, matches your goals, and aligns with your risk preferences and lifestyle.

Risk Management / Insurance Planning

We use best financial practices, built on an industry-renowned framework, to help us understand YOUR acceptable levels of risk-and-reward with unparalleled accuracy.

Hear Directly From Our Team

Shelby Bierema Client Relationship Manager

I was immediately drawn to the team and atmosphere at Cornerstone. With my first step in the door, I felt accepted, seen, and valued. I am proud to be part of an organization that truly believes in placing people over profit.

Shelby Bierema, FPQP®                                      Manager of Client Relations

Andrew Ulvestad AAMS Wealth Advisor Financial Planner Sioux Falls, Huron, SD

It wasn’t about sales; it wasn’t about money. Cornerstone displayed a genuine love for their clients and I knew it was something I wanted to be a part of.

Andrew Ulvestad, AAMS®                                      Wealth Advisor

Hear Directly from Our Clients

“Gordon, you have built an outstanding organization, and have selected qualified professional employees to serve your clients. The hallmark to your success is dedication, honesty, integrity, trust and your personal faith. Your leadership has established for your clients a sense of pride and belonging to your organization. Pauline and I will always be grateful for what you have done for us during our retirement years. We are grateful to you for being our Financial Advisor and friend during the past 20 years.”

 

~Eldon and Pauline Nelson, Clients since 1999

The statement is a testimonial from current clients as of March 13, 2023, and may no longer be applicable or a client. No compensation was paid in exchange for the testimonial, it was not solicited by the advisor, and client consents to use of this testimonial in the advisor’s advertisements.

The testimonial is not representative of all client’s experience with the advisor, not based on performance, and not a guarantee of future performance or success. Investing involves risk and isn’t always profitable.

The advisors at Cornerstone Financial Solutions, Inc. provide an outstanding client experience and integrated, full-service financial planning in a family-like culture. The practice focuses on client education and coaching with frequent reviews to help ensure clients are on-track to realize their financial goals.

The unparalleled level of service is best suited for those with a minimum of $500,000.00 in investable assets, who want to work with a fiduciary specializing  in comprehensive financial planning.

The Cornerstone team has over 140 years of combined team experience and 30 years in business, and is backed by the power of Raymond James, one of the top financial institutions in the US.

Learn more about The Cornerstone Experience®.

7 Rules for Inherited IRAs

7 RULES FOR INHERITED IRAS

Cornerstone is pleased to bring you this article by Ed Slott and Company, LLC, an organization providing IRA education and analysis to financial advisors, institutions, consumers, and media across the country. Our association with this organization helps us stay up to date on the latest developments in IRA and tax law. As always, give us a call if you’d like to discuss!

By Sarah Brenner, JD
Director of Retirement Education, Ed Slott and Company, LLC

Many IRA assets will ultimately go to nonspouse beneficiaries. When these beneficiaries inherit the funds, special rules kick in. Inherited IRAs are not like your own personal IRA account.

Seven rules for inherited IRAs that may surprise you if you are a nonspouse beneficiary:

1. You cannot contribute to your inherited IRA. You cannot make contributions to an inherited IRA. If you do have your own IRA, you cannot add those funds to the Inherited IRA or vice versa.

2. You can move your inherited IRA. If you are unhappy with the investment choices or the custodian, you can move your inherited IRA to another custodian, and you can select different investment options. However, you must move the account by direct transfer, and the new account must be an inherited IRA as well. As a nonspouse beneficiary, you cannot take a distribution and then roll it over within 60 days.

3. You may be able to do a QCD. If you are charitably inclined, you may be able to take advantage of a qualified charitable distribution (QCD) and move up to $100,000 of your IRA funds (annually) directly to the charity of your choice in a tax-free transfer. To do a QCD you must be 70 ½ or older.

4. You cannot convert your inherited IRA. Many times nonspouse beneficiaries are interested in having a Roth IRA. Unfortunately, the rules do not allow nonspouse IRA beneficiaries to convert inherited IRAs to Roth IRAs.

5. You may be subject to annual required distributions, or the 10-year rule at a minimum. You can’t keep the funds in your inherited IRA forever. If you inherited the IRA funds in 2020 or later, as a nonspouse beneficiary you will most like be subject to a 10-year payout-period, possibly with annual RMDs during the 10 year period. Certain eligible designated beneficiaries who inherit in 2020 or later and those beneficiaries who inherited prior to 2020 may be still be able to stretch RMDs over life expectancy.

6. Your distributions may be taxable, but there will be no penalty. Inherited IRAs are never subject to the 10% early distribution penalty. However, if you inherit a traditional IRA, it is likely that the distributions you take will be taxable. If you inherit a Roth IRA, you are more fortunate from a tax perspective. Distributions from an inherited Roth IRA will most likely be tax-free.

7. You should name a successor beneficiary. When you inherit an IRA, it makes sense to name a beneficiary. If you don’t, the default provisions in the IRA document are likely to apply. In many cases this would mean the funds would go to your estate which can mean more taxes and the time and expense of probate.

Gordon Wollman and Ed Slott

Gordon Wollman, Founder and President of Cornerstone Financial Solutions, and Raymond James Wealth Advisor, with Ed Slott at the 2023 Spring workshop for members of Ed Slott’s Elite and Master Elite IRA Advisor Group℠.

Membership in Ed Slott’s Elite IRA Advisor Group(TM)  is one of the tools our advisors use to help you avoid unnecessary taxes and fees on your retirement dollars. Gordon attends in-depth technical training on advanced retirement account planning strategies and estate planning techniques. And semiannual workshops analyzing the most recent tax law changes, case studies, private letter rulings, Congressional action and Supreme Court rulings help keep attendees on the cutting-edge of retirement, tax law and IRA distribution planning. Through his membership, Gordon is immediately notified of changes to the tax code and updates on retirement planning, and he has 24/7 access to Ed Slott and Company LLC to confer with on complex cases.

This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. Changes in tax laws or regulations may occur at any time and could substantially impact your situation.

ACKNOWLEDGMENT: This article was published in The Slott Report on irahelp.com by Ed Slott and Company, LLC, an organization providing timely IRA information and analysis to financial advisors, institutions, consumers, and media across the country and is distributed with its permission. Copyright ©2023, Ed Slott and Company, LLC Reprinted from The Slott Report, September 06, 2023, with permission https://www.irahelp.com/slottreport/rules-inherited-iras-may-surprise-nonspouse-beneficiaries. Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.

Raymond James is not affiliated with and does not endorse the opinions or services of of Sarah Brenner, JD, The Slott Report, ED Slott, Ed Slott and Company, LLC, IRA Help, LLC, irahelp.com, or Ed Slott’s Master Elite IRA Advisor Group. Members of Ed Slott’s Elite IRA Advisor Group(SM) train with Ed Slott and his team of IRA Experts on a continuous basis. These advisors passed a background check, complete requisite training, attend semiannual workshops, webinars, and complete mandatory exams. They are immediately notified of changes to the tax laws.

Avoiding Spousal Beneficiary Mistakes

AVOIDING SPOUSAL BENEFICIARY MISTAKES

5 Easy Steps

Cornerstone is pleased to bring you this article by Ed Slott and Company, LLC, an organization providing IRA education and analysis to financial advisors, institutions, consumers, and media across the country. Our association with this organization helps us stay up to date on the latest developments in IRA and tax law. As always, give us a call if you’d like to discuss!

Who is a spouse beneficiary?

 

A spouse beneficiary:

    • Must be married to the account owner at the time of the account owner’s death, and
    • Must be named on the beneficiary form (or inherit directly through the document default provisions).

 As a spouse beneficiary you have unique options:

1. Split the inherited account if necessary. As a spouse beneficiary, you can take advantage of the special spousal rules if you are the sole beneficiary of an IRA account.

If other beneficiaries have been named, the spouse can still take advantage of these special provisions by transferring their portion of the inherited IRA to a separate account by December 31st of the year following the year of the IRA owner’s death.

2. Will you need money prior to age 59½. If so, you will likely want to remain a beneficiary of the inherited account. Death is an exception to the 10% early distribution penalty. So, by staying as a beneficiary you can avoid paying the 10% penalty.

The account should be retitled as a properly titled inherited IRA. As a spouse that remains a beneficiary you do not need to take RMDs from the account until the year the deceased spouse would have turned 73.

3. Transfer the inherited IRA into a spouse beneficiary’s account. As a spouse beneficiary you should generally roll the inherited IRA into your name. Once a younger spouse beneficiary reaches age 59½, there’s no advantage to remaining a beneficiary, and a spousal rollover or transfer should be done.

NO other beneficiary has this option. By doing this rollover or transfer, a surviving spouse ensures that eligible designated beneficiaries will be able to stretch distributions over their own life expectancies.

4. Name new beneficiaries. As the surviving spouse you should name your own beneficiaries. If no beneficiaries have been named and the surviving spouse dies, the remaining assets will pass according to the default provisions in the custodial document. This is frequently the estate of the now deceased spouse, which could require a shorter payout period for beneficiaries or add unnecessary time and expenses by tying the assets up in probate.

5. Consider a disclaimer. Before taking any action regarding an inherited IRA, as a surviving spouse you should evaluate whether a full or partial disclaimer would be advantageous. By using a disclaimer, some or all of the inherited IRA can be passed to contingent beneficiaries, potentially extending the stretch IRA and reducing the future impact of estate taxes for eligible designated beneficiaries.

Gordon Wollman and Ed Slott

Gordon Wollman, Founder and President of Cornerstone Financial Solutions, and Raymond James Wealth Advisor, with Ed Slott at the 2023 Spring workshop for members of Ed Slott’s Elite and Master Elite IRA Advisor Group℠.

Membership in Ed Slott’s Elite IRA Advisor Group(T)  is one of the tools our advisors use to help you avoid unnecessary taxes and fees on your retirement dollars. Gordon attends in-depth technical training on advanced retirement account planning strategies and estate planning techniques. And semiannual workshops analyzing the most recent tax law changes, case studies, private letter rulings, Congressional action and Supreme Court rulings help keep attendees on the cutting-edge of retirement, tax law and IRA distribution planning. Through his membership, Gordon is immediately notified of changes to the tax code and updates on retirement planning, and he has 24/7 access to Ed Slott and Company LLC to confer with on complex cases.

This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James Financial Services, Inc. does not guarantee that the foregoing material is accurate or complete. Changes in tax laws or regulations may occur at any time and could substantially impact your situation. ACKNOWLEDGMENT: This article was published by Ed Slott and Company, LLC, an organization providing timely IRA information and analysis to financial advisors, institutions, consumers, and media across the country and is distributed with its permission. Copyright 2023, Ed Slott and Company, LLC. Raymond James is not affiliated with and does not endorse the opinions or services of Ed Slott or Ed Slott and Company, LLC.

 Raymond James is not affiliated with and does not endorse the opinions or services of ED Slott, Ed Slott and Company, LLC, IRA Help, LLC, or Ed Slott’s Master Elite IRA Advisor Group. Members of Ed Slott’s Elite IRA Advisor GroupSM train with Ed Slott and his team of IRA Experts on a continuous basis. These advisors passed a background check, complete requisite training, attend semiannual workshops, webinars, and complete mandatory exams. They are immediately notified of changes to the tax laws.

Caring For Aging Parents

Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 65 is growing. In the past decade, the population of Americans aged 65 and older has grown 35%, and is expected to reach 94.7 million in 2060. As our nation ages, many Americans are turning their attention to caring for aging parents.1

For many people, one of the most difficult conversations to have involves talking with an aging parent about extended medical care. The shifting of roles can be challenging, and emotions often prevent important information from being exchanged and critical decisions from being made.

When talking to a parent about future care, it’s best to have a strategy for structuring the conversation. Here are some key concepts to consider.

Cover The Basics

Knowing ahead of time what information you need to find out may help keep the conversation on track. Here is a checklist that can be a good starting point:

  • Primary physician
  • Specialists
  • Medications and supplements
  • Allergies to medication

It is also important to know the location of medical and estate management paperwork, including:2

  • Medicare card
  • Insurance information
  • Durable power of attorney for healthcare
  • Will, living will, trusts and other documents

Be Thorough

Remember that if you can collect all the critical information, you may be able to save your family time and avoid future emotional discussions. While checklists and scripts may help prepare you, remember that this conversation could signal a major change in your parent’s life. The transition from provider to dependent can be difficult for any parent and has the potential to unearth old issues. Be prepared for emotions and the unexpected. Be kind, but do your best to get all the information you need.

Keep The Lines Of Communication Open

This conversation is probably not the only one you will have with your parent about their future healthcare needs. It may be the beginning of an ongoing dialogue. Consider involving other siblings in the discussions. Often one sibling takes a lead role when caring for parents, but all family members should be honest about their feelings, situations, and needs.

Don’t Procrastinate

The earlier you begin to communicate about important issues, the more likely you will be to have all the information you need when a crisis arises. How will you know when a parent needs your help? Look for indicators like fluctuations in weight, failure to take medication, new health concerns, and diminished social interaction. These can all be warning signs that additional care may soon become necessary. Don’t avoid the topic of care just because you are uncomfortable. Chances are that waiting will only make you more so.

Remember, whatever your relationship with your parent has been, this new phase of life will present challenges for both parties. By treating your parent with love and respect—and taking the necessary steps toward open communication—you will be able to provide the help needed during this new phase of life.

 

Sources:

1. ACL.gov, 2020
2. Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

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