While death is a subject that few of us care to talk or even think about, it is something that should be discussed frankly and clearly.  Death is one of few things is life that is guaranteed, and doing the best we can to prepare for it financially and legally is a very important decision.  Estate planning involves the preparation of a will and living will, as well as a trust in many cases.

Your will is a written statement of how you wish your assets and other things to be handled in the event of your death.  Creating a will can help your loved ones act in a time of grief by outlining your funeral and burial wishes and by giving them a direction to move in to help settle your estate.  A living will, or advance directive, gives someone medical power of attorney for you in the event that you are in a coma or otherwise unable to make your own medical decisions.  For many seniors, a living will is the only way to ensure that you are treated as you wish to be in the event of a prolonged illness or serious medical condition.

A trust is an agreement that acts much as a will, giving your assets and properties to third parties.  Ownership is transferred while you are alive, however, meaning that the estate will not have to go through probate court after your death.  For people with multiple assets, a trust is a very important legality.

To put it simply, estate planning is very important.  In the event of your death, your loved ones will need a clear idea of how to handle finances and property.  By setting up a will and trust, you can make your wishes clear, ensuring that your property and assets are disbursed in the way that seems best to you.

As we get older, we begin to make plans for the golden years of our lives.  This is the time when we begin to review life insurance policies and to consider wills and advance directives to ensure that our loved ones will be taken care of in the event of our deaths.  One thing that few seniors plan for, however, is the potential for needing long term care.  This includes both at home and nursing care.  While Medicare and Medicaid both typically cover necessary (skilled) long term care, when we need long term care to help with the routine of daily living, most seniors find themselves without coverage.

It is remarkably easy to assume that you will not need long term care or to say that you will never allow yourself to be placed in a nursing home, but the simple truth is that a large amount of seniors need long term care at some point in their lives. Even when this is not permanent, the financial ramifications can be serious and can even be enough that the government seizes your assets in order to pay for care.

The best way to prepare for long term care is to find a policy or policy supplement that covers this service.  Long term care is a common need for people in all age brackets, and the chance of needing the service rises as we get older.  If your policy does not cover this service, a supplement is highly recommended.  If you are unsure whether you are covered, it is important to speak with your policy provider and find out whether you are covered for both skilled and unskilled long term care.  When your health, well-being, and assets are on the line, it is important to know for certain whether you are covered.

When you first hear of a reverse mortgage, it is easy to become confused by the jargon that lenders use. These loans are quite complex, and finding out whether they are the best option for you takes a bit of research. The first step, however, is simply to learn more about what these loans are and how they work.
A reverse mortgage is a loan that is generally intended for seniors who need to supplement their Social Security or retirement savings. The loan is offered only to seniors who own their home outright or who have a low enough mortgage balance to repay their mortgage using the funds from the loan. The loan is paid as a line of credit, ensuring that the borrower can take funds as needed or it can be paid with scheduled payments as long as the funds remain available. The funds borrowed can never exceed the equity of your home.
Repayment of your reverse mortgage is not due until none of the borrowers are the primary occupants of the house. This means that even if you live in the home after funds are exhausted, your home cannot be taken away to repay the loan. The loan will simply become due at such time as none of the borrowers reside in the home.
When the loan becomes due, either you or your estate will be responsible for repaying the loan and any associated fees. If this is not possible, the home will be repossessed. It is important to understand this fact when considering such a loan.
A reverse mortgage can be an excellent way to supplement the cost of your retirement, provided that you understand all of the terms of the loan. As with any loan, it is very important to understand all terms fully and to ensure that you borrow from a reputable lender. When you understand how a reverse mortgage really works, it is easier to understand if it is the right loan for you.

Life insurance is something that far too few people think about these days. While death is certainly an unwelcome subject for many of us, the truth is that it is an inevitability. Taking out a life insurance policy can have many benefits, including allowing your heirs to pay for funeral costs and to meet any expenses left by your estate, such as property taxes, mortgages, and property transfer fees. The average funeral today can cost over ten thousand dollars, and the truth is that many families simply cannot afford to meet these costs.
When you choose a life insurance policy, you will have many different options available to you depending on your age and health. A term policy covers you only for a certain time period, while standard policies are in effect for the remainder of your life. The premiums that will need to be paid rely on a variety of factors, and many policies offer payouts based on age and the amount of time that the policy has been active. The simple truth is that a life insurance policy is very important and that every senior should have one. In fact, it is recommended that all working people carry them as well.
Death is rarely something that can be predicted or planned, and providing for your family or for those who will care for your estate when you have passed away is important. Many of us do not realize the amount of debt that is left behind when a loved one passes away, but the amounts can be devastating for survivors. A life insurance policy can provide all or part of the amount that is needed to protect your loved ones when you are no longer here to do so. Taking the time to apply for and obtain a policy is one of the best decisions you can make to help protect those you love.

Granting someone power of attorney over your financial assets can be quite stressful, especially with so many cases of theft on the news recently. Whether you entrust a loved one or a third party with your finances, there seems to be a large risk of having your finds mismanaged or even stolen. The good news is that there are steps you can take to prevent this. Even if you are entrusting a loved one with your money, setting limitations on the power of attorney is a prudent decision.
When you create power of attorney for a family member, it is best to draft a legal document detailing the ways that your money may be handled. Ideally, you will want the money used only for medical care, housing, and your living expenses. Drafting a list of permissions is an excellent way to ensure this. To ensure that your money can be easily tracked and spending followed, you may also want to ensure that your funds are not allowed to be placed into any account that contains funds belonging to other parties. This can go a long way in preventing fraud and theft.
While you may think that granting power of attorney is completely safe, there is always risk of fraud when there are no limits as to how your money may be handled or spent. Creating a simple and legal document that clearly dictates this can do much to protect you. Inform your bank of the types of debts to be paid from your account, and ask that any odd looking expenses be marked or tracked. It is ultimately up to you to do what it takes to protect your assets. You have worked hard for your money, and taking the steps that you need in order to protect it is something that everyone should take the time to do.

Life Settlement Savings

As we age, we are forced to think about things that most people choose to ignore. The truth is that everyone should have a living will or advance directive in place, but this is even more important for seniors. A living will is more than a do-not-resuscitate order, it is a legal document that allows us the right to make our own decisions regarding end of life care. When you choose to create one of these documents, you can outline how you want your medical care to be handled in the event of a coma or of a severe medical crisis. This includes directives regarding life support as well as life saving surgeries.

A living will gives a third party power of attorney regarding your medical decisions, allowing them to act on your behalf. It is important to speak with your loved ones about this decision before medical problems arise and to make those around you aware of your wishes. A living will can put those wishes into writing and your doctor and hospital will retain a copy of the will on file, ensuring that your wishes are carried out. Whether you are seeking to ensure that all efforts are performed to save you or whether you wish for there to be no extreme measures taken, this document is important.

End of life care and emergency care can be hard to think about and discuss, but it is a necessity. Taking the time to set forth an advance directive can not only ensure that your wishes are met, but it can take a burden off of your loved ones at a very emotional time. Your end of life care affects everyone around you, and ensuring that your family is not forced to make these tough decisions is something that everyone must consider.

Examples supporting the theory that seniors have been more adversely affected by the economic turmoil more than any other age groups:

• The market crash erased $2.7 trillion in retirement savings
• 16% of seniors 65+ are still working – the highest rate since 1971
• Health care costs are rising 2.5% faster than the rest of the economy

The article also states long-term care insurance is a must but is yet another monthly expense.

Reverse mortgages continue to be an option – but as I said in a previous blog, a last resort option.

If you or a loved one are holding or paying premiums on an unwanted, unneeded or under-performing life insurance policy – don’t surrender it or let it lapse – see its real value by using our on-line calculator to determine whether a life settlement is a better option for you.  Use the funds to offset rising costs and to fund long-term care insurance, donate to your favorite charity or invest in property to leave to your estate.

In a special report by MSNBC (a joint venture between Microsoft and NBC) titled “Economy hitting the elderly especially hard”, the author suggests that the slumping economy is affecting retired people and the elderly more than any other demographic group.

Citing a study by the AARP, elderly Americans are filing for bankruptcy in record numbers.

The AARP also found:

• 45 percent say food prices have caused a hardship for their budgets
• 39 percent think at least some foods will have to be rationed within a year
• 47 percent are shopping for food less frequently
• 41 percent are eating less meat
• 18 percent have started eliminating some meals

This is astounding! Now is the time to review and ensure your financial fitness!

A specific example of a service affected by the combination of higher fuel prices and higher food prices is the “Meals on Wheels” program. Whether you are a recipient of meals from this service or an active senior delivering meals, you can see the impact higher food and gas prices have in increasing the cost to both provide and deliver meals.

What can we do about this, other critical programs and our own well-being?

Knowing your financial options and preparing for the future are two things that all of us can do to make our senior years more comfortable, enjoyable and secure.

• Research and buy Long-term Care Insurance. This can be a much better option than assuming a reverse mortgage or family will be able to support you later in life.

Click here for an article on long-term care insurance by the AARP.

• Are you paying too much for Life Insurance?

Check out these two websites rated as “Best Quick Life Insurance Quotes” and “Best For Personalized Life Insurance” by Kiplinger magazine.

• Familiar with a Life Insurance Settlement?

Get an instant and free Life Settlement Estimate and then decide if it makes sense to continue paying premiums on your policy. It is not uncommon to find a less expensive policy and fund the new policy and long-term care insurance by selling an existing policy!

To learn more about Senior Life Insurance Settlements, talk with your CPA, Attorney or go to http://www.thelifesettlementnetwork.com/.

Watch for (or subscribe to) this weekly blog/article series for a review of the latest news on finance issues facing seniors and for helpful websites and tips.

Questions and comments are welcome and encouraged.

As if seniors were not already aware, aging can be expensive. In the June 9th, 2008 edition of BusinessWeek, page 11 presents some interesting data on just how much more seniors are spending than the “young” (25 – 34 year olds).

On average:

• Seniors spend more than 4x what the young do on Health Insurance
• Seniors spend almost 3x on Housing Upkeep
• Seniors spend more than 4x on Prescriptions

While seniors spend much less than the young on items such as mortgages, rent and alcohol – the article also cites assisted-living facility costs have risen 25% since 2004, and the annual costs of nursing homes have reached almost $80,000 annually!

Consequently, it is absolutely critical that seniors are aware of all of their financial options including reverse mortgages, long-term care insurance and selling unwanted life insurance policies in senior life settlement transactions.

While “borrowing” against a home in a reverse mortgage has provided many seniors additional funds for necessities, donations or fun; a lesser known and often better financial option is the selling of unwanted life insurance. Eligible seniors can sell their policies for up to 4 times the cash surrender value or more.
Contact your attorney, certified financial planner or CPA, or go to http://www.thelifesettlementnetwork.com/ to find the latest information on senior life settlements. A free life settlement calculator and no-obligation policy submittal tool are also provided.

Know your financial options – and offset the rising costs of a comfortable life.