Senior citizens, who are unable to take care of their finances and taxes due to several reasons, find a great helper and advisor in a fiduciary. A fiduciary takes care of all the financial issues of individuals who cannot make critical decisions in such matters on their own. A fiduciary has the experience and expertise to minimize conflicts of interest in family situations and provide a senior a life that is he/she truly deserves.
The government has tax deductions in place for senior citizens but they often don’t know how to use those deductions to their advantage. A fiduciary helps senior people use such deductions to reduce their income taxes every year. The following are the deductions that fiduciary make use of in order to benefit their senior clients in regards to income tax preparation. Standard Deduction A taxpayer has the option to go for either standard deduction or he/she can itemize their personal deductions on IRS Schedule A. A fiduciary can advice you to go with standard deduction if your personal deductions, which could include donations, medical costs, mortgage interest, etc., are not greater than relevant standard deduction. Medical Costs Senior citizens often have to spend a great amount of money on dental and medical expenses. A fiduciary makes sure that such expenses can be compensated with the help of itemizing their clients personal deductions. These personal deductions include premiums of health insurance, prescribed drugs costs, nursing care, etc. Itemizing these deductions makes medical expenses deductible from income tax. Donations While seniors may have done charity out of pure selflessness, their donations and charitable acts nevertheless come back to benefit them and a fiduciary knows how to use such acts to their client’s advantage. Charities and donations are deductible as itemized deductions and a fiduciary knows how to use them.
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Perhaps you always thought your parents will be around with you. But now, you are noticing signs of aging like your parents are becoming forgetful. Is the mental health of your one or both of your parents becoming a concern? Do they need consistent attention and assisted living? How will you know the time has come to take over the management of your parent’s requirements?
The following are the signs that help in figuring out when your parents need assistance
When you fear your parents are showing similar signs of mental decline, it’s a prime time to take financial and health management in your hands. If their mental health is failing, they may forget critical tasks like taking medication on time, paying important bills, turning off dangerous appliances after the use, and more. If your one or both parents are losing weight, this indicates illness, depression, or reaction to certain medications. Also, this reflects your loved ones are losing physical strength or mobility to prepare meals or becoming forgetful to take eat on time. Therefore, take help from a medical doctor to know if their cognitive abilities are declining. What option do you have? When medical professionals believe your parents’ mental condition failing, seek conservatorship. Get in touch with a renowned attorney, who will guide you through the conservatorship procedures. Though the decision isn’t easy, this often is in the best of their interest. For instance, you can consider assisted living where caregivers will take care of their meals and medication if it’s not possible for you to be around all the time. |