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▣ Eldercare

posted by Bonnie Hughes on August 12th, 2009 at 8:49 AM

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Eldercare Practices and Serving Seniors Well

by Bonnie A. Hughes, CFP®

A question was posed recently by a columnist: Besides having a grandmother whom you like a lot, what qualifies you to work with seniors?

Dave Demming, a planner in Ohio, might answer that by sharing that he has had many of the same clients for the last 30 years and as they have aged, he’s helped them in lots of ways that go beyond the typical planning engagement. The problem for him is that this kind of help bleeds into some new areas for hispractice and he has been active in seeking out conferences, continuing education, and other resources to serve his clients at the level they’ve enjoyed these past decades.Many more advisors are getting into the area of eldercare as their clients become seniors. If you want to work in this area, what are some best practices that help your clients and protect you? We’re going to cover two areas. The first involves due diligence and best practices of documentation, and the second involves education and a qualified referral network.

Want to know more about Eldercare and how ACP works with Seniors and their families? Contact Bonnie at bonnie@americancapitalplanning.com

▣ An inherited IRA - now what?

posted by Bonnie Hughes on August 12th, 2009 at 8:39 AM

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From a www.bankrate.com article, "So, if you think you might inherit an IRA from someone other than your spouse, such as an elderly parent, it's wise to do some advance planning if you can. According to Bonnie Hughes, CFP, your options for handling the account are a little trickier. In particular, there are some thorny rules regarding designating beneficiaries for IRAs.

In most cases, says Hughes, IRA beneficiaries should be actual, named people -- known as designated beneficiaries -- rather than simply "my estate" or "my living trust." Another no-no: leaving blank the space on the IRA beneficiary form (available from the financial institution that holds the account) in the mistaken assumption that the account automatically will be distributed to heirs as part of their will.

Why? "Trusts, estates and other entities don't have life expectancies," says Hughes. If they 'receive' an inherited IRA, they must draw down,and pay taxes on, the entire IRA account within five years or according to distribution plan of the original owner, if the owner had already begun taking distributions before his or her death, says Hughes."

By Teri Cettina • Bankrate.com 2004

Want to know more and the most up to date rules? Contact American Capital Planning at 703.579.7031 or meeting@americancapitalplanning.com.