Estate Planning Tips For The Sandwich Generation
Individuals who are ‘sandwiched’ between supporting their own children while also caring for their aging parents. This dual responsibility can result in a great deal of physical, emotional, and financial stress as people try to balance their work and family obligations. As individuals try to balance this juggling act, estate planning may not be top of mind. It is at this critical time, though, that estate planning becomes even more important.
If you are part of the sandwich generation, there are some tips that can make estate planning easier and ensure you and all of your loved ones have the necessary care and support. Our Daytona Beach estate planning lawyer explains more below.
Gift Your Parents with Cash or Pay Their Medical Expenses
One of the easiest ways to support your parents is to gift them cash. It is important to consider the gift tax exclusion if estate taxes are a concern. In 2025, you can gift each parent up to $19,000 without triggering taxes. Additionally, payments to medical professionals are not classified as gifts. As such, you can pay for your parents’ medical expenses without taxes being an issue.
Establish Trusts
There are many different types of trusts you can establish to help your parents. For example, if you pass away before your parents, you can establish a trust that names them as beneficiaries. You can structure the trust so that after your parents pass away, any remaining property in the trust will be distributed to your children. Additionally, when trusts are properly designed, they can remove valuable property from your estate, which can also limit any taxes that may otherwise be levied when you pass away.
Purchase Your Parents’ Home
Purchasing your parents’ home may be a viable option if they have built up significant equity. You can then lease it back to them, allowing them to tap into that equity while staying in the property. This can also provide you with the benefit of valuable tax deductions for the interest on the mortgage, depreciation, maintenance, and other home-related costs.
Plan for the Cost of Long-Term Care
The average cost of long-term care in the United States is $100,000 per year. The cost is also not covered by Social Security or traditional health insurance policies. Medicare also offers very little assistance to the few who qualify. It is important to develop a plan for the cost of long-term care with your parents in the event that they require home health care, a nursing home, or an assisted living facility. Establishing a trust that shields funds from Medicare’s look-back period, long-term care insurance, and other investments are all possible options.
Our Estate Planning Lawyer in Daytona Beach Can Draft the Documents You Need
As part of the sandwich generation, there are many legal tools that can help ensure everyone you care for is protected now, and in the future. At Bundza & Rodriguez, our Daytona Beach estate planning lawyer can help determine which documents you need and execute them properly so your loved ones continue receiving the care you provide. Call us now at 386-252-5170 or contact us online to request a consultation and to learn more about how we can help.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
