Many times when talking to clients about planning for long term care they tell me that they are aware of something called the “five year look-back period.” Unfortunately, many of these people have no idea what the relevance of this look-back period is. This article will attempt to explain what is meant by that term and why it is such an important concept when planning how to protect your assets from the cost of long term care.
When planning for the future of an elderly family member or child with special needs, you should consider preparing a powers of attorney. Powers of attorney are a simple and inexpensive way to help manage financial and medical accounts if you or your loved one is no longer able to make decisions clearly. For reasons of simplicity and clarity, it is usually better to have separate financial and medical powers of attorney.
Powers of attorney eliminates the worry and stress of managing financial and medical accounts during a time of incapacitation. Powers of attorney are prepared by your attorney and give control over financial and medical accounts to an agent, who is normally a family member or trusted friend. The agent is then granted legal authority to manage the principal’s accounts, usually while he or she is unable to.
Don’t fall victim to tax scams! Remember that if it sounds too good to be true, then it probably is.
Here are some of the recent 2014 tax scams the Internal Revenue Service wants you to be aware of:
(1) Identity Theft
Identity theft occurs when someone uses your personal information, such as your name, Social Security Number (SSN) or other identifying information – without your permission – to commit fraud or other crimes. In many cases, an identity thief uses a legitimate taxpayer’s identity to fraudulently file a tax return and claim a refund.