There comes a time when many people from Boston become incapable of making their own financial decisions. When this time arrives, portions of an estate plan may activate, including the power of attorney that should have been set up. In most cases, a person will give a loved one the power of attorney over his or her estate because there is a certain trust, but it can be surprising what money can do to a person.
As time goes on, the already elderly will only be getting older and, as they age, their physical and mental capacities become less and less reliable. This is a part of life, and because of it, many in Massachusetts have found that they are incapable of caring for themselves. Long-term care planning is something that can alleviate the need for an individual to care for him or herself by allocating money for detailed care that may be needed in the future.
One of the major tax exemptions that are part of estate planning may be at the root of a misconception that many in Boston hold when attempting to receive Medicaid for their late life care. In order to qualify for Medicaid, an individual must possess a certain amount of wealth that is below the designation set by the federal government.
Instead of worrying about looming estate tax changes, some planning experts believe that individuals should focus instead on the legacy that they leave behind rather than the taxes that they will incur. The issue with tax planning currently is that federal estate tax laws are set to change at the end of the year if Congress does nothing.