More and more Americans are dying at home rather than in hospitals. According to the New England Journal of Medicine, in 2017 29.8% of deaths by natural causes occurred in hospitals while 30.7% occurred at home. The percentage of people dying in hospitals has been declining for several decades. While in 1912 two-thirds of people died at home, this evened out in the 1950s. By the 1970s, at least two-thirds of people died in hospitals. Since the 1970s, the trend has reversed. Now, more people are dying at home than in the hospital. Here’s a link to a NY Times piece on the topic.

If you wish to spend your final days at home, it’s important that you plan for that. Most importantly, you need to have a Health Care Power of Attorney that appoints someone to make decisions for you if you are unable to do so for yourself. In that Health Care Power of Attorney, be sure to appoint someone who will respect your wishes to be kept at home, rather than be moved to a hospital. Of course, there might be some difficult conversations regarding your end-of-life choices. Be sure you have those rather than avoiding them. It’s important for the person you are appointing as your agent under the Health Care Power of Attorney to understand when you want intervention in a hospital and when you would want to stay at home even if it might shorten the length of your life.

Read More: https://www.aaepa.com/2019/12/how-will-you-age-in-place-and-be-able-to-die-at-home/

As Americans grow older, more and more of us need help with our daily activities. It could be a little help or a lot of help, depending on the situation. Of course, the level of assistance we need can change over time.

According to a recent study by Bankers Life Center for a Secure Retirement, 68% of middle-income boomers are providing care for a parent and 17% are providing care for a spouse or partner. According to the survey, about two-thirds of those boomers prefer to be cared for in their own home.

Read more: https://www.aaepa.com/2019/09/how-will-you-obtain-the-care-you-need/

Income Tax planning is an integral part of Estate Planning. The first article in this series examined the concept of income tax basis, how it is acquired, and how it is adjusted. This article examines what happens to the income tax basis of an asset when it is gifted or bequeathed. There are different rules for the basis of an asset that is gifted than one you own at death. That seems odd, but it’s true.

Let’s look at an example. John owned 1,000 shares of a stock he purchased for $50 per share. His basis in the stock was $50 per share or $50,000. The stock skyrocketed in value to $1,000 per share, so his 1,000 shares were worth $1 million. Since John had other assets, he decided to give the shares to his daughter, Betty, and then died the next day. Betty’s basis in the stock was the same as John’s at the time of the gift. She has what’s called a “carryover” basis. Let’s say Betty sells 100 shares for $1,100 per share, or $110,000. Betty will recognize a gain of $1,100 less her basis of $50, or $1,050 per share. Her total gain is $1,050 x 100 or $105,000. She’ll be taxed depending upon her other income.

Read more: https://www.aaepa.com/2019/09/income-tax-basis-in-estate-planning/