Dollars & Sense

Eli Akhavan Esq. Managing Partner of the Akhavan Law Group LLP: “If you fail to plan the government and state law default rules will step in and determine how your assets should be distributed.”

F

inancial planning for a secure old age is of critical importance yet most people do not sufficiently address this need while they are still fully employed. Between multiple school tuitions and summer camps clothing food and other expenses of a growing family concerns about later life can seem very remote. Many assume their financial needs in later life will decrease. However this is not always the case as health and everyday living arrangements change. Social Security is not sufficient as a sole source of income nor does Medicare fully cover all of one’s health needs. (InIsrael government and standard insurance services are similarly inadequate to fully meet the financial demands of the senior years.)

The elephant in the room is that the costs associated with home care or a long-term care facility can be exorbitant. According to Sarah Moskowitz an estate litigator and managing partner of the Moskowitz Legal Group the most basic facility-based care inNew Yorkcan cost over $100000 a year. Depending on the patient’s needs 24/7 home care can easily cost some $15 000 per month. Personal assets may be drained too quickly to provide for the extended years of your loved one’s 120.

Taking Responsibility

We asked attorney Baruch (Brian) Greenwald of Greenwald Weiss Attorneys at Law LLC how children can best plan for their elderly parents. He answered with a question of his own: “Why wait until the client is elderly and his or her children are dealing with the issues? Planning for yourself while you still can will help avoid stress heartache and expense later. The responsibility shouldn’t be left for children to handle when faced with a crisis.”