“Sonny, it’s business. Not personal.”
Most of us remember The Godfather and that classic piece of counsel from Tom Hagen to the hot-headed Sonny. While separating “business” from “personal” may have been a worthy approach for the Corleones, estate planning professionals know otherwise.
Making the decision to place a loved one in long-term care is a difficult one. There are endless emotions and questions that need to be addressed. To make the process more difficult, family and loved ones often have preconceived notions of what it means to be in a facility. We have all heard a horror story or two of poor care, abuse, or medical malpractice – knowledge that understandably creates hesitancy to allow your loved one to be placed into care. Deciding to place a loved one in a long-term care facility requires thoughtful and logical reasoning.
Family and friends often struggle with the decision to take away their loved one’s independence. Often, placement also means greater distance from those the resident relies on for companionship and assistance. Family may feel disloyal; loved ones may feel betrayed. Family may feel that they have become incapable of caring for their loved one on their own; loved ones may feel that they are not unwell enough to investigate long-term care options. Some loved ones only need minimal assistance; others may need around-the-clock care.
The generation-skipping transfer tax (GSTT) often impedes clients who wish to leave assets to their grandchildren. The GSTT is the IRS’s way of ensuring such gifts—as well as the grandparent’s estate—do not escape taxation.