More Potential Changes Under the Trump Administration

Contributed by: James Smiertka

The New Year always brings changes, but this year may be particularly notable. We have a new U.S. President & our Congress is ruled by a Republican majority. This surely brings a new direction for the country and also the prospect of policy and regulatory changes.

As we know, President Trump made tax reform a key issue during his campaign, and he has proposed wide-ranging changes to the U.S. tax system. Additionally, with the GOP with majority control of the House and the Senate, there is a better chance for an overhaul of the federal tax system than in the past. Changes will most likely not be quickly completed, and it is likely that any tax reform will not take place until late 2017 or early 2018.

Here are some of the potential changes:

Estate Tax

• Trump’s plan seeks to repeal the current estate tax as well as the alternative minimum tax (AMT) and generation-skipping transfer tax (GSTT)

• Total repeal is unlikely

• $10 Million exemption (per couple)

  • Assets above this amount would be subject to capital gains tax

• Likely change to the asset basis step-up for heirs

  • Date of death value rules likely preserved for heirs of smaller estates

  • Limited basis step-up for heirs inheriting from larger estates

• There is also the potential for state estate taxes to disappear as they are based on the federal estate tax system

Gift Tax

• Will most likely stick around in some form

  • Prevents income shifting from donors in high tax brackets to the donated in lower tax brackets

• If the estate tax is repealed, we could be looking at a change to the lifetime gift tax exemption in the neighborhood of around $1 Million or higher (lifetime), with the annual gift tax exclusion preserved (currently $14,000/year)

There are a wide range of possible combinations of estate & gift tax reform, and potential tax planning opportunities depending on the details of that reform. Here are some potential scenarios, per Michael Kitces:

While there are many potential planning scenarios for both individuals and businesses, nothing is certain. Only very broad strokes have been “painted” thus far. Regardless, Center for Financial Planning, Inc. is always staying up to date with the most recent changes. Make sure to speak with your financial advisor if you have questions on any of these topics.

Also, make sure to check out our previous blog on the new administration’s potential impact to marginal tax brackets, standard deductions, and capital gains tax.

James Smiertka is a Client Service Associate at Center for Financial Planning, Inc.®

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The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of James Smiertka and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Sources:

• Kiplinger Tax Letter, Vol. 92, No. 2 (1/27/17)
• http://www.forbes.com/sites/ashleaebeling/2016/11/09/will-trump-victory-yield-estate-tax-repeal/#aef41902bf2a
• https://www.kitces.com/blog/repeal-estate-gift-taxes-and-carryover-basis-under-president-trump/
• http://www.forbes.com/sites/nextavenue/2016/12/12/what-the-trump-tax-proposals-mean-for-high-net-worth-retirees/#5f7253b17ef4
• http://www.cnbc.com/2017/01/22/how-trumps-proposals-may-affect-every-income-tax-bracket.html

Why Approaching Difficult Topics Now Could Help Avoid a Mess with Parents’ Finances

Contributed by: Sandra Adams, CFP®, CeFT™

As I write this, we are a couple of weeks into 2017, and already I have been involved with two client family meetings – adult children meeting with their parents about their parents estate planning and finances. I am sure this is just the tip of the iceberg for this type of meeting – and I am so thankful. Why? Because these families are planning ahead! Approaching these sometimes very difficult topics now can be the key to avoiding a very big mess later.

You might think “So, what’s the big deal? Mom and Dad seem to have things under control. They can pay their bills just fine, they seem to be financially comfortable, and I don’t want to invade their privacy and ask them too many questions about their money, so let’s leave well enough alone until we really need to get involved.”

Here are just a few of the “big deals” that could occur for those who wait until mom and dad can’t handle things (i.e. in this case, parents now are unable to handle financial affairs due to incapacity):

• Parents may not remember where they hold accounts, what their account numbers are, passwords, etc.

• Parents may not remember all income sources, amounts, etc. (pensions, Social Security, etc.) and may not have been reconciling checkbooks.

• Parents may not have been paying bills and may not remember what bills need to be paid (you are lucky if they have bills set up for auto bill pay, as many of this generation have been uncomfortable setting this up).

• Parents may or may not have a filing system and/or record keeping system that you can understand; depending on the stage of their incapacity, they may or may not be able to explain it to you.

• If your parents have existing Durable Powers of Attorney (General/Financial and Medical) that give you authority to act on your behalf, you can hope that they are up to date and written broad enough instructions to be used with most financial and medical institutions.

• You can hope that there aren’t too many other surprises that you didn’t expect!

My advice is always to follow the proactive planning of some of my clients, and start talking to your parents in advance of a crisis (or in advance of “that time” when parents can no longer do things themselves). Sure, it is not always the most comfortable conversation to start, but you might be surprised to find that many older adult parents find comfort in knowing that their children (1) want to be involved, (2) are interested in their well-being, and (3) know that there is a plan in place once the family meeting has taken place. Start the process of planning for your parents today! Don’t hesitate to contact me if I can be of assistance (Sandy.Adams@CenterFinPlan.com).

Sandra Adams, CFP® , CeFT™ is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Sandy Adams and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Planning for a Wild 2017

Contributed by: Kali Hassinger, CFP®

Happy 2017 everyone! A new year is a great opportunity to evaluate your financial wellbeing and set goals for the future.  Some of you may have existing financial plans in place, and others may be thinking that 2017 is the year to take control of your finances.  In either situation, it’s important to understand that financial planning is an ongoing and ever-evolving process. Separate from your personal circumstances, there are many outside forces that affect your financial plan, and there are a few items that may be especially important to evaluate this year.

Given the events of 2016 and possible changes in 2017, the following circumstances could be prime examples of why it’s important to review and update your plan.

• Taxes – With the impending presidency of Donald Trump and the GOP in control of both the House and the Senate, we are anticipating a possible overhaul of the current tax system. For almost all taxpayers, your current tax rate could be reduced.  If the brackets are consolidated as expected, 2017 may be a good year to accelerate taxable income or max out your Roth IRA contributions. You can read more about the proposed tax plans here (http://www.centerfinplan.com/money-centered/2016/12/22/is-tax-reform-coming ).  

• Estate Planning – Just as with taxes, the political landscape of 2017 is set to possibly repeal the current Estate Tax. Because this tax is such a central point for Estate Planning with high net worth individuals, some current estate plans may need to be revised. There is also the possibility that the current gift tax laws may be on the docket for elimination. Although nothing is certain at this point, we will remain up to-date on any changes as they come.

• Allocation – 2016 was certainly a year of surprises for the market. After a decline in January, the shock of Brexit, and Donald Trump’s unanticipated election, the market overcame intermittent volatility and reached all-time highs in November.  Just as no one could predict that the market dip after Brexit would recover so quickly, no one expected the markets to actually go up in the wake of Trump’s election. There is no way to predict the future, but there is a disciplined investing approach that can help you through market uncertainties. With a balanced investment portfolio it is possible to reap the benefits of part of these gains while also insulating yourself from potential volatility. Your balanced portfolio returns may not reach the same highs as the S&P 500, but it can help you reach your goals with proper management over time. 

Regardless of your situation, a new year is always a great opportunity to reorganize and review your goals.  Life can be unpredictable, but not unplannable. We are always here to help, and we encourage you to reach out with questions.

Happy New Year! 

Kali Hassinger, CFP® is an Associate Financial Planner at Center for Financial Planning, Inc.®

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This information does not purport to be a complete description of the securities, markets, or developments referred to in this material, it is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Opinions expressed are those of Kali Hassinger, CFP®, and are not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change. There is no assurance that the statements, opinions or forecasts mentioned will prove to be correct. Investing involves risk, investors may incur a profit or loss regardless of the strategy or strategies employed. Asset allocation and diversification do not ensure a profit or guarantee against loss. Raymond James Financial Services, Inc. and its advisors do not provide advice on tax or legal issues, these matters should be discussed with the appropriate professional. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Please note that direct investment in an index is not possible.

Webinar In Review: Post Election Update & Year End Planning Opportunities

Contributed by: Center for Financial Planning, Inc.®

The Center's most popular webinar of 2016 was the Post-Election Update and Year End Planning Opportunity presentation. Melissa Joy, CFP®, and Nick Defenthaler, CFP®, break down what President Trump's win may mean for financial markets. They also review areas of financial planning including retirement, taxes, and investments for year-end financial planning opportunities.

Catch a replay of the webinar below. Also, we have a companion year-end planning guide available along with a year-end planning worksheet.

Center for Financial Planning, Inc. is a Registered Investment Advisor and independent of Raymond James Financial Services. Securities offered through Raymond James Fianncial Services, Inc., Member FINRA/SIPC.

How Not to be a Record Hoarder

Contributed by: Sandra Adams, CFP®, CeFT™

If you’re like me, this is the time of year to go through my files and piles of paperwork in preparation for income tax season.  Seeing the stacks of statements and paperwork I’ve collected makes me feel like I’m a prime candidate to be on an upcoming episode of “Hoarders,” because I never quite feel like I can get rid of things…I might need them someday.

Consult with your financial planner and your CPA for discarding any financial or income tax paperwork, and your attorney before parting with legal paperwork.  AND REMEMBER:  you should shred any paperwork with identifying names, addresses, dates of birth or account or Social Security numbers on them to avoid being a potential financial fraud victim.

To ease your mind as you purge your financial records, here are some document retention guidelines:

(CLICK HERE TO DOWNLOAD YOUR PDF COPY)

Bank Statements: Keep one year unless needed for tax records.

Cancelled Checks: Keep one year unless needed for tax records.

Charitable Contributions: Keep with applicable tax return.

Credit Purchase Receipts: Discard after purchase appears on credit card statement if not needed for warranties, merchandise returns or taxes.

Credit Card Statements: Discard after payment appears on credit card statement.

Employee Business Expense Records: Keep with applicable tax return.

Health Insurance Policies: Keep until policy expires, lapses or is replaced.

Home & Property Insurance: Keep until policy expires, lapses or is replaced.

Income Tax Return and Records: Permanently.

Investment Annual Statements and 1099's: Keep with applicable tax return.

Investment Sale and Purchase Confirmation Records: Dispose of sale confirmation records when the transactions are correctly reflected on the monthly statement. Keep purchase confirmation records 3-6 years after investment is sold as evidence of cost.

Life Insurance: Keep until there is no chance of reinstatement. Premium receipts may be discarded when notices reflect payment.

Medical Records: Permanently.

Medical Expense Records: Keep with applicable tax return if deducted on tax return.

Military Papers: Permanently (may be required for possible veteran's benefits).

Individual Retirement Account Records: Permanently.

Passports: Until expiration.

Pay Stubs: One year. Discard all but final, cumulative pay stubs for the year.

Personal Certificates (Birth/Death, Marriage/Divorce, Religious Ceremonies): Permanently.

Real Estate Documents: Keep three to six years after property has been disposed of and taxes have been paid.

Residential Records (Copies of purchase related documents, annual mortgage statements, receipts for improvements and copies of rental leases/receipts.): Indefinitely.

Retirement Plan Statements: Three to six years. Keep year end statements permanently.

Warranties and Receipts: Discard warranties when they are clearly expired. Use your judgment when discarding receipts.

Will, Trust, Durable Powers of Attorney: Keep current documents permanently.

If the hoarder in you is still too nervous to part with the paper, you do have some options:

• Electronically scan your important financial and legal papers and save them to a computer file; remember to back up your computer and save a copy of the list (on a disk or USB flash drive) in a safe place.

• Talk to your financial advisor, who may have an electronic document management system that is storing many of your documents (and backing them up) for you. 

Oh, and while you’re revving up your shredder and getting ready to make some confetti, here’s one more piece of paper to keep…this one.  Go ahead, press print.  Save this guide and you’ll save yourself the trouble of trying to remember it all next year. 

Sandra Adams, CFP® , CeFT™ is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.

Be Prepared for Life’s Hurricanes

Contributed by: Sandra Adams, CFP®, CeFT™

I was attending a conference in Orlando recently when Hurricane Matthew was heading up the coast of Florida. To say that I was completely unprepared would be an understatement. I was so busy leading up to the conference that I was only vaguely aware of the weather/hurricane status. I packed so lightly for the conference that I brought only what I needed for the days that I would be in Orlando – so that I could bring a carry-on bag only, of course!  I even, for the first time ever, pre-paid my airport parking since I knew exactly when I was arriving and when I would return, so that I could be easy in and easy out.  Why am I telling you all of this in the context of a blog about planning, you might ask?

Well, to me, it fits perfectly.  I see many clients that encounter “Hurricane” situations in their lives that they are completely unprepared for, especially when it comes to assisting older adult parents. Like the weather leading up to a hurricane, things can seem perfectly calm and sunny; moments later the storm hits and you are left completely unprepared for the chaos that comes next. For example, a simple unexpected fall and a broken hip for mom can bring months of “hurricane” aftermath if your family is unprepared.

What can you do to plan ahead so that any unexpected storms don’t find you unprepared?

• Have a family meeting with your older adult parent (facilitated by your financial planner or other professional, if that is helpful). During this meeting, discuss current and future challenges that your parent(s) may face, what alternatives they would consider as solutions to these challenges, and what resources they have to solve these challenges.

• As a result of the family meeting(s), have a written plan of action that includes all of the above, and, if needed, also includes what professional team members would need to be called upon (financial planner, elder law attorney, geriatric care manager, etc.).

• Make sure all estate planning documents are up-to-date and reflect your parents’ current wishes and situation. 

• Put a Family Care Plan in place so that everyone knows their role in advance (and family conflicts are avoided, as much as possible).

• Help your parent(s) complete the Personal Record Keeping Document and Letter of Last Instruction (and keep it up-to-date) so that all important information is in one place and handy and a moment’s notice in a crisis.

Going back to my recent hurricane situation, I happened to luck out. I was at a very secure hotel property during the oncoming storm, and while I got delayed an extra day due to the airport being shut down, the worst thing I had to endure was wearing some dirty clothes and dealing with some restless children at the hotel because Disney was also closed for the day. If you don’t help your aging parents plan, I can assure you the results won’t be as kind. The key is to start the conversation – it is not an easy one, but it is one of the most important conversations you may have in your lifetime!  Please contact me if I can be of help.

Sandra Adams, CFP® , CeFT™ is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Sandy Adams and not necessarily those of Raymond James. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Elder Care Planning for Single Older Adults

Contributed by: Sandra Adams, CFP®, CeFT™

As I have written about for many years, having a plan in place for one’s aging years is important. Making sure that there is a plan for future housing, future care, having legacy plans in place, and having the proper estate planning documents procured so that someone is set to handle things in the case of incapacity is vital. For aging couples, it is important that these plans are discussed and ready; but in a worse-case scenario, when plans haven’t been solidified, at least the spouse is in place to help provide support and clean up the pieces, even if the situation isn’t ideal.  But what happens if planning hasn’t been done for a single older person, one who might never have been married and might have no children? One who might not have any close or living relatives, then what?

I have found that many single older adults think that planning for their aging years is very simple. They believe because it is “just them,” not much planning it is involved. Quite to the contrary, because it is “just them,” more planning is actually needed. There are not any default family caregivers or family living situations to rely on. The estate planning area can be a special area of challenge.

For single older adults with possibly no family to name as durable powers of attorney or successor trustees on Trusts, what are possibilities?

• Consider naming a close family friend that you trust.

• An estate planning attorney can serve as a general power of attorney or executor of an estate if there is no other suitable person to name.

• An estate planning attorney or family friend along with a corporate Trustee can be named as a successor trustee of a Trust (i.e. broker dealer of the financial advisor you work with, if that is appropriate and the fees are reasonable).

• A Geriatric Care Manager might be considered as a power of attorney for health care/patient advocate if there is no other suitable person to name (they have the appropriate background in nursing and social work to make the health care related decisions on your behalf).

Elder Care planning is important for everyone, but especially important for older single adults. If you haven’t started planning and this applies to you, start the conversation with your financial planner today.

Sandra Adams, CFP® , CeFT™ is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Sandra Adams and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Your Early Retirement and Your Aging Parents

Contributed by: Sandra Adams, CFP®

Last month, I wrote about how caring for aging parents can be a roadblock to planning for your retirement, particularly if you don’t have an aging plan in place for your parents. Well, let’s assume you successfully make your way to retirement. You’ve made it to the promised-land and are ready to do all of those things you’ve dreamed of doing for years…travel, spend more time with the kids and grandkids, and explore those hobbies you haven’t had time to enjoy.

And then…bam! Your parents are now older and in need of your assistance, just in time! On the one hand, it is perfect – you no longer have the stress of needing to balance work with the stress of caregiving, and you can give them your undivided time and attention. But on the other hand, this is now your time…the time you’ve waited years to enjoy…not to spend tied to someone else’s schedule and needs. For many retired couples, they are the primary caregivers for not one, but multiple sets of aging parents, which only adds to the stress (not to mention the marital tension!). Many are worried that their retirement will be spent caring for aging parents; or that by the time the caregiving is done, they will need a caregiver themselves!

So what can you do to ease the family stress and give your retirement a needed boost?

• Make sure that you and your family have planning conversations about the care for your aging parent and that you have a Family Care Agreement in place outlining everyone’s roles and responsibilities.

• Consider having professional resources that you can use, when and if needed, to give family members breaks (i.e. Home Care Agencies, Geriatric Care Managers and Professional Physicians that can serve as advocates in your absence, paid companions and drivers, etc.).

• Look into Respite Care Centers where your aging parent can stay for a short period of time and be safe and well cared for while you are away (if they are unable to stay alone).

Again, if possible, planning ahead is always critical. Knowing the available resources (and then actually using them) is an important part of the process. Caring for your loved ones yourself and being their personal advocate is something people take very seriously. But taking care of you, including taking some time off and tending to other personal relationships, is the key to a happy and healthy life. So, I strongly advocate for families sharing responsibilities and/or taking advantage of professional advocates like Geriatric Care Managers or Professional Physicians that serve as advocates so that they can take time off from full time caregiving. Taking advantage of such resources can allow for better quality personal lives and better quality time and caregiving with your aging parent in the long run.

If you have questions or wish to discuss this type of planning in greater detail, do not hesitate to contact me.

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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Any opinions are those of Sandra Adams and not necessarily those of Raymond James. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Care Agreements Document for Families

Contributed by: Sandra Adams, CFP®

Last month I wrote about using a Care Agreements Document between couples as a way to communicate preferences for future care, in order to help alleviate future stress for the caregiver spouse and to make certain the ill spouse’s wishes for care and for the future quality of life of their caregiver spouse were able to be communicated and honored. The Care Agreements Document can also be used for entire families to plan for the care of a loved one (or loved ones) – usually older adult parents. Let me explain how the agreement might be used in this context.

 In the case of families, I find that anxiety and tension arises when (1) They are unclear of their parent’s wishes for their care or (2) there is conflict amongst siblings regarding division of caregiving duties and/or disagreement about the care in general.  A Family Care Agreements, especially if drafted with the parents involved in advance of a care need, would clear up both of these major sources of tension. As with the Care Agreements for Couples, the Care Agreements Document for Families is a wonderful way to begin a family conversation about future care for older adult parents; it helps to provide the older adults the opportunity to express their future desires for care and to clear up any misconceptions about their wishes. It allows adult children to hear—from the mouths of their parents—how they wish their children to be involved in their care, how they wish to be cared for and by whom, and where they wish to be cared for (as long as finances support these wishes). As siblings divide the future caregiving duties, keeping in mind those that make most sense based on location, availability and talents, they can keep in mind their parents words, wishes, and resources.  

The Care Agreements for Families can also serve as a way to provide protection to the individuals serving in caregiving roles; for example, if future stressful situations during a parent’s care may cause their position to become unpopular. The family will be able to reference the agreement to recall that the agreement to act and serve the parents as caregivers in a particular manner was agreed upon – it can help protect feelings and calm emotions in times of heightened tensions. 

Again, I propose that when we are writing all of our other estate planning documents—our Wills, Patient Advocates, and Durable Power of Attorney Documents—that we consider writing a Care Agreements Document with our older adult parents and siblings.

What would this agreement include?

• If our older adult parents get ill and need to be cared for, how do they wish to be cared for?

• How do they want us, as adult children, to be involved in the caregiving?

• Do they want us to provide care or would they prefer to have professional caregivers (if they can afford to have them)?

• Where do they wish to have care provided (home, assisted living, etc.)?

Having a Care Agreements Document amongst family members in advance of an illness does a couple of things:

1. It helps family members/adult children make clearer decisions in times of stress if/when the time comes.

2. It also helps take away any feelings of guilt or resentment because agreements about the plan have been made in advance; helping to preserve relationships.

A Care Agreements Document, whether for Couples or Families, is something that should be added to your future planning toolkit as you plan ahead for the future aging – for you and for your loved ones. If you have questions about how to get started, feel free to reach out to me to find out how!

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Sandy Adams and not necessarily those of Raymond James. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Care Agreements Document for Couples

Contributed by: Sandra Adams, CFP®

In the last several months I have been a part of several client conversations, many of which left me feeling a sense of great concern for at least one member of the couple. You see, these conversations all involved client couples that were dealing with one spouse having been diagnosed with some form of cognitive impairment, and the other serving as the primary care giver. In all of these cases, the caregiver expressed a multitude of emotions: responsibility, stress, worry, grief, and even a sense of being lost – as if they didn’t know where to go from here and they didn’t want to let their loved one know how they were feeling.

We all want nothing more than to love and care for our partners, to our best abilities, for the rest of our lives. At least that is what we vow when we marry on our wedding days. Little do we know what lies in our futures—chronic health issues or possible long term cognitive impairment—that may require intensive caregiving. What do we expect of our spouse in those cases? Will we want our spouse to provide personal care and will we want to remain at home, no matter the personal and financial sacrifice?  We have all heard and read that caregiver stress is a very real issue in the U.S., as many spouses and families strive to keep their loved ones cared for at home; unfortunately, this “I can do it all” approach leads to many caregivers falling ill and passing away before the “ill” spouse (or just giving up the quality of life once hoped for). So, how do we prevent this from happening?

I propose that when we are writing all of our other estate planning documents—our Wills, Patient Advocates, and Durable Power of Attorney Documents—that we consider writing a Care Agreements Document with our spouse or significant other.

What would this agreement include, you ask?

• If I get ill, or become cognitively impaired, how do I want to be cared for?

• If I am cognitively impaired/what do I expect of you as a caregiver and do I expect you to care for me at home (is there permission for you to make a move to a facility for safety reasons)?

• If I get ill or become cognitively impaired, do I expect you to provide the care, or do I give you permission to hire care and do I prefer that you visit with me and spend quality time with me.

• Any other items that seem important (i.e. whether or not it is important to keep pets, and or other items that are important to you if you become ill).

Having a Care Agreements Document between spouses/partners in advance of an illness does a couple of things:

1. It helps both partners make clearer decisions in times of stress if/when the time comes. It also takes away any feelings of guilt because you have had the conversation advance of an illness.

2. You have in writing what the care wishes are for your partner in the case of any disagreement from children (whether your children or from a second marriage, etc.). 

While a Care Agreement Document is not a legal document, it is something that helps express wishes for the person that is named in charge of making decisions for you (Durable Power of Attorney, etc.) and can be a great way to begin a conversation about those end of life issues that we don’t like to talk about, but need to. 

In next month’s blog, I will write about using the Care Agreements Document for family caregiving, so stay tuned!

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Sandy Adams and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. You should discuss any legal matters with the appropriate professional.