The annual open enrollment for Medicare is Oct. 15 through Dec. 7, 2017. In order to enroll, one must be 65 or older and meet eligibility requirements. Having the right information from the start may help seniors avoid costly mistakes during elderly planning. In Texas, not evaluating all options when enrolling in Medicare can lead to long-term out-of-pocket costs.
Medicare mistakes in elderly planning
Estate planning is still necessary if death tax disappears
Congress has released a tax reform plan to eliminate the federal estate tax, also known as the death tax. Many lawmakers have had this tax on their radars for years, and most consider it another form of double taxation. In Texas, estate planning may still be necessary even without the federal estate tax.
Elderly planning for retirement
Elderly Americans use Social Security as a major source of monthly income. To be eligible for retirement benefits, an applicant must be at least 62 years old and have earned a minimum of 40 working credits. Studies show that in 2017 nearly 1 trillion in benefits will be paid, and forty-two million of that will be paid to retired workers. For elderly planning in Texas, that amounts to an average monthly payment of $1369, the equivalent of one Social Security credit.
Acting as a personal representative for aging parents
Mental keenness begins to gradually decline after age 60, but most seniors do not realize that it is even happening. Studies show that as a person ages, the ability to complete complicated tasks weakens, especially with financial management. In Texas, it is important to begin speaking with senior parents about acting as their personal representative sooner rather than later.
Family financial options when estate planning
Estate planning is a shrewd and clever way to provide for a family's financial future. Trusts are an alternative to leaving a will (or may be used in conjunction with one), and offer a broad range of flexible solutions during estate planning. In Texas, revocable trusts, commonly known as living trusts can be made, and managed according to the terms set forth by the creator. Living trusts can also be changed once they are put in place.
