Hello this is martin i am looking for a wood grain aluminum and Aluminum Profile Manufacturer. How do i Find contacts specially i chines.
lundi 27 août 2018
vendredi 24 août 2018
How important is social media in your marketing today?
I've been around this forum for the better part of 10 years and we've had a ton of discussions on best ways to use social media for marketing.
Over the years things have changed. For one some say social media has turned into a cesspool of link bait, scams, and trolls that makes it hard for anyone to stand out.
Another is that it's clear to most now that social media isn't the easy button of free marketing that people made it out to be. Just like any other form of marketing it requires a strategy, and takes time and money to create engaging content, images, and to promote your thing above the others so that it has a chance to be seen by your target audience. Basically the principles of advertising.
There's also the security and privacy issues that are now turning many users away from platforms like Facebook.
I personally still use Facebook mainly because I run a small group there, but I don't do much with my business page anymore. As a matter of fact I've pretty much stripped my Facebook profile of any information about me. And I refuse to put it on my phone or use messenger in any way.
I still like Twitter and that's mostly where I will share business or industry related stuff, but I use it more or less like a news feed of my interests. Twitter is my go to place when I need customer service from someone. It works better than email and phone calls because if you call people out the right way on Twitter, they will respond pretty quickly and help with your issue.
I've recently started updating my LinkedIn profile since I'll be needing it soon.
Other than that I have accounts on Instagram, Snapchat..pretty much every platform but I don't do much of anything on them other than follow other people and things.
So I'm wondering, in 2018 how many of you still rely on, or want social media to be a major element of your overall marketing strategy?
And for those of you who do still rely on it, what have you learned over the years...what insight have you gained that you can share with others?
Over the years things have changed. For one some say social media has turned into a cesspool of link bait, scams, and trolls that makes it hard for anyone to stand out.
Another is that it's clear to most now that social media isn't the easy button of free marketing that people made it out to be. Just like any other form of marketing it requires a strategy, and takes time and money to create engaging content, images, and to promote your thing above the others so that it has a chance to be seen by your target audience. Basically the principles of advertising.
There's also the security and privacy issues that are now turning many users away from platforms like Facebook.
I personally still use Facebook mainly because I run a small group there, but I don't do much with my business page anymore. As a matter of fact I've pretty much stripped my Facebook profile of any information about me. And I refuse to put it on my phone or use messenger in any way.
I still like Twitter and that's mostly where I will share business or industry related stuff, but I use it more or less like a news feed of my interests. Twitter is my go to place when I need customer service from someone. It works better than email and phone calls because if you call people out the right way on Twitter, they will respond pretty quickly and help with your issue.
I've recently started updating my LinkedIn profile since I'll be needing it soon.
Other than that I have accounts on Instagram, Snapchat..pretty much every platform but I don't do much of anything on them other than follow other people and things.
So I'm wondering, in 2018 how many of you still rely on, or want social media to be a major element of your overall marketing strategy?
And for those of you who do still rely on it, what have you learned over the years...what insight have you gained that you can share with others?
lundi 20 août 2018
Small-business cybersecurity bill becomes law
Finally some good news and some help from the government. It's not a magic button, but at least it's some assistance and resources to help small businesses.
According to Symantec and The National Cyber Alliance
For small business owners this is a critical issue.
[The President] recently signed into law the NIST Small Business Cybersecurity Act, which requires the National Institute of Standards and Technology (NIST) to develop and provide resources to protect small businesses’ digital assets from cybersecurity threats.
According to the bill, the resources must be implemented using technologies that are commercial and off-the-shelf, be based on international standards to the extent possible, include case studies of practical applications, and must include elements that promote awareness of simple, basic controls, a workplace cybersecurity culture, and third-party stakeholder relationships.
Source: https://homelandprepnews.com/stories...l-becomes-law/
For those of you who are concerned about your businesses security, do you think this well help?
According to Symantec and The National Cyber Alliance
- Almost 50 percent of small businesses have experienced a cyber attack.
- More than 70 percent of attacks target small businesses.
- As much as 60 percent of hacked small and medium-sized businesses go out of business after six months.
For small business owners this is a critical issue.
Quote:
[The President] recently signed into law the NIST Small Business Cybersecurity Act, which requires the National Institute of Standards and Technology (NIST) to develop and provide resources to protect small businesses’ digital assets from cybersecurity threats.
According to the bill, the resources must be implemented using technologies that are commercial and off-the-shelf, be based on international standards to the extent possible, include case studies of practical applications, and must include elements that promote awareness of simple, basic controls, a workplace cybersecurity culture, and third-party stakeholder relationships.
For those of you who are concerned about your businesses security, do you think this well help?
How to protect yourself from SIM card swap
Used to be people cloned phones or sim cards to make long distance calls. Now that you phone is your access to things like your bank account, criminals are literally stealing money.
Read this article this morning, thought it would be helpful to help understand what it is, and how to protect yourself from it.
At its most basic level, a SIM swap is when someone convinces your carrier to switch your phone number over to a SIM card they own. They’re not doing it for prank call cover, or to rack up long-distance charges. By diverting your incoming messages, scammers can easily complete the text-based two-factor authentication checks that protect your most sensitive accounts. Or, if you don’t have two-factor set up in the first place, they can use your phone number to trick services into coughing up your passwords.
Source: https://www.wired.com/story/sim-swap...-defend-phone/
Read this article this morning, thought it would be helpful to help understand what it is, and how to protect yourself from it.
Quote:
At its most basic level, a SIM swap is when someone convinces your carrier to switch your phone number over to a SIM card they own. They’re not doing it for prank call cover, or to rack up long-distance charges. By diverting your incoming messages, scammers can easily complete the text-based two-factor authentication checks that protect your most sensitive accounts. Or, if you don’t have two-factor set up in the first place, they can use your phone number to trick services into coughing up your passwords.
dimanche 19 août 2018
How to protect yourself from SIM card swap
Used to be people cloned phones or sim cards to make long distance calls. Now that you phone is your access to things like your bank account, criminals are literally stealing money.
Read this article this morning, thought it would be helpful to help understand what it is, and how to protect yourself from it.
At its most basic level, a SIM swap is when someone convinces your carrier to switch your phone number over to a SIM card they own. They’re not doing it for prank call cover, or to rack up long-distance charges. By diverting your incoming messages, scammers can easily complete the text-based two-factor authentication checks that protect your most sensitive accounts. Or, if you don’t have two-factor set up in the first place, they can use your phone number to trick services into coughing up your passwords.
Source: https://www.wired.com/story/sim-swap...-defend-phone/
Read this article this morning, thought it would be helpful to help understand what it is, and how to protect yourself from it.
Quote:
At its most basic level, a SIM swap is when someone convinces your carrier to switch your phone number over to a SIM card they own. They’re not doing it for prank call cover, or to rack up long-distance charges. By diverting your incoming messages, scammers can easily complete the text-based two-factor authentication checks that protect your most sensitive accounts. Or, if you don’t have two-factor set up in the first place, they can use your phone number to trick services into coughing up your passwords.
vendredi 17 août 2018
Hello
Hello all, it is great to join this group of business - oriented people.
My name is Eimantas and i am owner of Lithuanian company "Sprendimai pramonei" (which translates to "Industrial solutions")
Personal background:
Currently full-time employed R&D Manager at water meter manufacturing company, previous experience with quality management, process engineering and other manufacturing-related topics. Almost 10 years of experience within manufacturing environment.
Along-side my full-time employment me and two of my previous colleagues have started the company Industrial solutions which manufactures efficiency-oriented (LEAN) aluminum profile furniture for industrial and manufacturing applications. Currently expanding our operations into the stainless-steel kitchen equipment operations.
BR,
Eimantas
My name is Eimantas and i am owner of Lithuanian company "Sprendimai pramonei" (which translates to "Industrial solutions")
Personal background:
Currently full-time employed R&D Manager at water meter manufacturing company, previous experience with quality management, process engineering and other manufacturing-related topics. Almost 10 years of experience within manufacturing environment.
Along-side my full-time employment me and two of my previous colleagues have started the company Industrial solutions which manufactures efficiency-oriented (LEAN) aluminum profile furniture for industrial and manufacturing applications. Currently expanding our operations into the stainless-steel kitchen equipment operations.
BR,
Eimantas
mardi 14 août 2018
Buying a dry cleaner store - homework questions
Hello folks,
I am considering buying a small drop store for dry cleaning. Do anyone of you own one that can help me with the most important points to have into account when talking to potential sellers? What are the right questions to ask, tricky things the sellers usually don't disclose and so on?
Any help will be appreciated.
Thank you in advance.
I am considering buying a small drop store for dry cleaning. Do anyone of you own one that can help me with the most important points to have into account when talking to potential sellers? What are the right questions to ask, tricky things the sellers usually don't disclose and so on?
Any help will be appreciated.
Thank you in advance.
lundi 6 août 2018
Would you pay a monthly free to use Windows 10?
A few tech reporters including Mary Jo Foley of ZDNet's All About Microsoft are saying that Microsoft may start charging a monthly fee for Windows 10. This has kind of been rumoured for a while with Microsoft calling Windows a service.
In a new report, CNet’s well connected Microsoft specialist Mary Jo Foley reports the company will soon launch ‘Microsoft Managed Desktop’ which will charge a monthly fee to configure computers running Windows 10 and keep them running smoothly as new updates are released.
https://www.forbes.com/sites/gordonk.../#6d90eb3072c1
It appears that this will be rolled out to businesses first. Not sure if this will mean consumers too.
Like most everyone else I've used Windows for years. Decades. But I've become pretty comfortable with various Linux distros recently and my new favorite laptop is a Chromebook. Earlier this year I even stopped using Office 365. I doubt I would pay monthly for Windows now that I'm comfortable with other options and don't even use MS services much anymore, but I know millions of people are pretty much stuck.
Would you pay a monthly fee for Windows if it meant worry free updates, and maintenance?
If so, how much do you think is fair?
Quote:
In a new report, CNet’s well connected Microsoft specialist Mary Jo Foley reports the company will soon launch ‘Microsoft Managed Desktop’ which will charge a monthly fee to configure computers running Windows 10 and keep them running smoothly as new updates are released.
It appears that this will be rolled out to businesses first. Not sure if this will mean consumers too.
Like most everyone else I've used Windows for years. Decades. But I've become pretty comfortable with various Linux distros recently and my new favorite laptop is a Chromebook. Earlier this year I even stopped using Office 365. I doubt I would pay monthly for Windows now that I'm comfortable with other options and don't even use MS services much anymore, but I know millions of people are pretty much stuck.
Would you pay a monthly fee for Windows if it meant worry free updates, and maintenance?
If so, how much do you think is fair?
dimanche 5 août 2018
NIST Cyber Bill Advances to President’s Desk
Quote:
The NIST Small Business Cybersecurity Act, S. 770, is heading to President Trump’s desk where he is expected to sign it into law soon.
The legislation, approved by the Senate on Wednesday, directs the National Institute of Standards and Technology (NIST) to provide resources to small businesses to help them implement NIST’s voluntary cybersecurity framework. The bill also directs NIST to take the needs of small businesses into account when working on future standards. The goal of the legislation, according to bill sponsors Sens. Brian Schatz, D-Hawaii, and James Risch, R-Idaho, is to help small businesses protect their digital assets from cybersecurity threats.
Just curious, if the government provided more cyber security resources to help you secure your business and it's assets would you take advantage of it?
If not, why not and what would help you to do so?
This is an issue that I really care about and know how vulnerable small businesses are, and how helpless it could feel if you don't know what to do or where to start, so this is both curiosity and market research.
jeudi 2 août 2018
something to think about part 2
Too many characters - had to split it in two
The Home Protection Trust is only one of several techniques elder law attorneys use to help their clients keep the home in the family. Other strategies include transfers between spouses, life estate deeds, and transfers to a caregiver child. I’ll write about these other planning options in later posts.
Don’t Try this without Expert Help from an Elder Law Attorney who knows the laws in your State
The planning that will work best for you will depend upon your particular situation and the laws of your state. If you are concerned that your family home will be lost because of the overwhelming costs associated with Alzheimer’s, other dementia, Parkinson’s, stroke or another disabling condition, see an elder law attorney in your state soon. The laws regarding Medicaid and Estate Recovery differ from state to state – you need to get expert advice from a lawyer who knows the laws of the state where you live.
For Further Information
An article in the Wall Street Journal discusses the Home Protection Trust. The article calls it an irrevocable income only trust, because more than just the home can be protected. Here is a link to the Wall Street Journal article: Solving Medicaid Assets Math: Trusts Can Be Used To Pass On a Home; Annuities for Income (I am quoted in this article).
See also the follow up Wall Street Journal article Answers on Medicaid Vary State by State (I am quoted in that article as well).Some Other Information Links
· How to Protect your Home from Nursing Home Costs – Part 2: The Life Estate Deed
How to Protect your Home from Nursing Home Costs – Part 2
The Life Estate Deed
Many seniors will spend some time in a nursing home. Because Medicare’s coverage for nursing home costs is limited most nursing home residents end up on Medicaid. But, unlike Medicare, Medicaid expects to be repaid when you die for money spent on your nursing home and other long term care. It can force your home to be sold to pay the government back. The Medicaid repayment laws are referred to as the Medicaid Estate Recovery program.
Most people want their home to go to their children or other family, not to the government. Many wonder whether there is anything they can do to protect their home from being lost if they end up needing long term care. In this series of articles I am discussing strategies seniors are using to protect their homes from being lost to the government estate recovery program. This post discusses the Life Estate Deed.
What is a Life Estate Deed?
A life estate deed is a way you can give your home to your children while you are alive but retain rights and control over it during your remaining lifetime. For example, you deed your home to your children, but the deed provides that your keep the right to live in the home for the rest of your life. You may also retain various other controls over the property.
In many states, including Pennsylvania, the home will then pass to your children upon your death without going through probate and without being subject to Medicaid Estate Recovery.
There are many different types of life estate deeds. The variations includerevocable deeds which allow you to sell the home without your children’s approval, and irrevocable deeds where you no longer have the ability to sell the property without your children’s consent. These variations and their numerous sub-types can have vastly different consequences in terms of Medicaid.
Seniors sometimes do a life estate deed to a trust rather than directly to their child or children. The trust can offer protection from creditors of your child, or marital problems, or the possibility that your child may predecease you. It can protect your home while providing you with important flexibility to deal with whatever unforeseen changes might occur in the future.
Another variation of a life estate deed involves the senior buying a life estate interest in their child’s home. In the right circumstances this planning option can allow you to protect financial assets and qualify for future Medicaid benefits more easily. But special Medicaid rules apply to the purchase of a life estate in a child’s home and tax consequences must be carefully considered.
Other Issues to Consider
As with so many aspects of Medicaid law, what seems simple on the surface can get very complicated. Many issues other than avoiding estate recovery need to be considered before you sign a deed to your home. For example, a life estate deed can be treated as a gift which can create a lengthy ineligibility period for needed Medicaid long term care benefits. (There are ways this problem can be addressed - such as having the deed transfer take place more than 5 years prior to the application for Medicaid). Avoiding tax complications can also be an important issue.
The life estate deed is a very common planning device that seniors frequently use to protect their homes from the cost of long term care. It’s a planning tool to consider if you are worried that the state will take your home.
But you don’t want to do a life estate deed without getting expert advice from an elder law attorney who understands the Medicaid qualification and estate recovery rules in your state. An experienced elder law attorney can help you sort through the options and determine which option is best for you and your family.
The Home Protection Trust is only one of several techniques elder law attorneys use to help their clients keep the home in the family. Other strategies include transfers between spouses, life estate deeds, and transfers to a caregiver child. I’ll write about these other planning options in later posts.
Don’t Try this without Expert Help from an Elder Law Attorney who knows the laws in your State
The planning that will work best for you will depend upon your particular situation and the laws of your state. If you are concerned that your family home will be lost because of the overwhelming costs associated with Alzheimer’s, other dementia, Parkinson’s, stroke or another disabling condition, see an elder law attorney in your state soon. The laws regarding Medicaid and Estate Recovery differ from state to state – you need to get expert advice from a lawyer who knows the laws of the state where you live.
For Further Information
An article in the Wall Street Journal discusses the Home Protection Trust. The article calls it an irrevocable income only trust, because more than just the home can be protected. Here is a link to the Wall Street Journal article: Solving Medicaid Assets Math: Trusts Can Be Used To Pass On a Home; Annuities for Income (I am quoted in this article).
See also the follow up Wall Street Journal article Answers on Medicaid Vary State by State (I am quoted in that article as well).Some Other Information Links
· How to Protect your Home from Nursing Home Costs – Part 2: The Life Estate Deed
How to Protect your Home from Nursing Home Costs – Part 2
The Life Estate Deed
Many seniors will spend some time in a nursing home. Because Medicare’s coverage for nursing home costs is limited most nursing home residents end up on Medicaid. But, unlike Medicare, Medicaid expects to be repaid when you die for money spent on your nursing home and other long term care. It can force your home to be sold to pay the government back. The Medicaid repayment laws are referred to as the Medicaid Estate Recovery program.
Most people want their home to go to their children or other family, not to the government. Many wonder whether there is anything they can do to protect their home from being lost if they end up needing long term care. In this series of articles I am discussing strategies seniors are using to protect their homes from being lost to the government estate recovery program. This post discusses the Life Estate Deed.
What is a Life Estate Deed?
A life estate deed is a way you can give your home to your children while you are alive but retain rights and control over it during your remaining lifetime. For example, you deed your home to your children, but the deed provides that your keep the right to live in the home for the rest of your life. You may also retain various other controls over the property.
In many states, including Pennsylvania, the home will then pass to your children upon your death without going through probate and without being subject to Medicaid Estate Recovery.
There are many different types of life estate deeds. The variations includerevocable deeds which allow you to sell the home without your children’s approval, and irrevocable deeds where you no longer have the ability to sell the property without your children’s consent. These variations and their numerous sub-types can have vastly different consequences in terms of Medicaid.
Seniors sometimes do a life estate deed to a trust rather than directly to their child or children. The trust can offer protection from creditors of your child, or marital problems, or the possibility that your child may predecease you. It can protect your home while providing you with important flexibility to deal with whatever unforeseen changes might occur in the future.
Another variation of a life estate deed involves the senior buying a life estate interest in their child’s home. In the right circumstances this planning option can allow you to protect financial assets and qualify for future Medicaid benefits more easily. But special Medicaid rules apply to the purchase of a life estate in a child’s home and tax consequences must be carefully considered.
Other Issues to Consider
As with so many aspects of Medicaid law, what seems simple on the surface can get very complicated. Many issues other than avoiding estate recovery need to be considered before you sign a deed to your home. For example, a life estate deed can be treated as a gift which can create a lengthy ineligibility period for needed Medicaid long term care benefits. (There are ways this problem can be addressed - such as having the deed transfer take place more than 5 years prior to the application for Medicaid). Avoiding tax complications can also be an important issue.
The life estate deed is a very common planning device that seniors frequently use to protect their homes from the cost of long term care. It’s a planning tool to consider if you are worried that the state will take your home.
But you don’t want to do a life estate deed without getting expert advice from an elder law attorney who understands the Medicaid qualification and estate recovery rules in your state. An experienced elder law attorney can help you sort through the options and determine which option is best for you and your family.
Something to think about
I always know my Gov are crooks, but I did not know Medicaid can force the sale of your belongings to repay their costs.
How to Protect your Home from Nursing Home Costs – Part 1
The Home Protection Trust
The numbers are terrifying. If you are 65 or older you will probably need long term care at some time during your remaining life. Long term care is very costly. It can place a big financial, physical, and emotional burden on your family. Have you planned for the likelihood that you will need long term care someday?
Alzheimer’s disease is one of the main culprits. According to the Alzheimer’s Association, one in eight people age 65 and older (13 percent) has Alzheimer’s disease, and nearly half of people age 85 and older (45 percent) have Alzheimer’s. The likelihood of developing Alzheimer’s doubles about every five years after age 65.
According to the U.S. Department of Health and Human Services two-thirds of people 65 or older will someday need long-term care assistance at home, in an assisted living type facility, or in a skilled nursing home. Over 40 percent will need care in an expensive nursing home for at least some period of time. Currently the average annual cost of a semi-private room in a nursing home in Pennsylvania is over $97,000 a year. A private room costs more.
Many of us will be unable to afford to pay for the long term care we are likely to need as we age. Certainly few families can pay $100,000 a year to a nursing home. Fortunately, when you run out of money to pay for nursing home care, the government Medicaid program will usually pay.
The Medicaid Estate Recovery Problem
Since nursing homes are so expensive, most of their residents do run out of money and end up on Medicaid. But, when you die, Medicaid expects to be repaid for the money it spent on your nursing home or other long term care. It will force your home to be sold to pay the government back. This is called theMedicaid Estate Recovery program.
Most people want their home to go to their children or other family, not to the government. Many wonder whether there is anything they can do to protect their home from being lost if they end up needing long term care.
Finally, I have some good news: with expert planning, and especially if you plan in advance, seniors can ensure that their homes will stay in the family after their deaths and not be lost to estate recovery. Over the next month, I plan to post several articles that discuss different planning options that people are using to protect their homes from the Medicaid Estate Recovery Program.
Today’s post will discuss an option that is available to people who have the wisdom to plan in advance. It can be used to protect both the home and other assets, including investments, for your spouse, children or other heirs after your death. Let’s call this planning option The Home Protection Trust.
Trust has Advantages over Giving your Home to your Children
Medicaid Estate Recovery forces the sale of things, like your home, that you own when you die. So one way people try to avoid the recovery program is to give things away before they die.
People sometimes try to protect their homes from nursing home costs and estate recovery by giving the home outright to their children. They plan to rely on their children to “do the right thing.”
While this strategy may ultimately protect the home from Medicaid Estate Recovery, it carries many risks. It’s not as simple as it seems. One problem is that deeding your home to your children will make you ineligible for Medicaid for a long period of time. You may have no way to pay for that care. In Pennsylvania, under our State’s filial responsibility laws, the nursing home can then sue your children who may end up being personally responsible to pay for your care. (Many other states have similar laws).
Deeding your home to your children can also have significant tax disadvantages, and can put the senior at risk of losing the home in the event their child predeceases them or runs into financial or marital problems. More than once I’ve been consulted by a client who regretted having given their home to their child and ending up with their son-in-law or daughter-in-law as their landlord.
Usually, a better option is to deed the home so that it is owned by a trust rather than being owned by a child. [The term trust describes the holding of property by a trustee (one or more persons or a trust company or Bank) in accordance with the provisions you create in a written trust instrument.]
Using a trust, your property can be protected from estate recovery when you die, even after a long stay in the nursing home. And since your child is not the owner of the property it is protected from any bad things that may happen in your child’s life as well.
A trust allows you to protect your real estate (and other assets if you wish) from long term care costs while avoiding the risks and negative consequences of outright transfers to children. By transferring the home and other assets into a properly designed trust, you can still reserve some interest in and control over the transferred assets – advantages that are not available when transfers are made outright to a child.
For example, the trust will normally provide that you have the right to reside in the home for the rest of your lifetime. No one can throw you out or ask you to pay rent. You still own the home for tax purposes, so you can still deduct the taxes, and claim any property tax rebates. You can claim the residential exclusion from income tax if the property is sold during your lifetime. And your heirs can get a step up in tax basis if the property is sold after you die, which avoids or limits any income taxes they might have to pay.
The Trust Can Protect More than just your Home
Investments, such as stocks, bonds, bank accounts, and life insurance policies are also commonly protected through the use of this kind of trust. Because more than just your home can be protected this type of trust is given different names. You will hear lawyers sometimes refer to it as a “Family Asset Protection Trust,” or as an “Irrevocable Income only Trust (IIOT),” or as a “Medicaid Trust.”
Who Can Be Trustee?
People often name one or more of their children as trustees - this is kind of like naming someone in a power of attorney or an executor in a Will - the trustee doesn’t own the assets of the trust, they just manage them according to the terms you set up in the trust.
While most people name one or more family members as the trustee, you can also name a professional trustee like a bank. In any event, you can include a provision in your trust that allows you to fire the trustee and appoint a new one at any time. (I like to call this the Donald Trump “You’re Fired!” power).
This is Not your standard Revocable Living Trust
It’s important to note that a Home Protection Trust is very different than the standard revocable “living trust” that many people have already set up. Arevocable living trust does not protect your assets from nursing home costs. The Home Protection Trust is an irrevocable trust specifically designed to protect its holdings from loss if you ever have to apply for Medicaid to pay for your long term care costs.
When you transfer the things you want to protect to the trust you don’t have to sell them. You don’t have to change your investments. What you own now is merely moved under the protective umbrella of the trust. The trust can sell things held by it, and buy new things. If your home is held under the trust, and you decide to move, the trust can sell it and buy a new one.
Planning in Advance.
Because the Home Protection Trust involves the transfer of property for Medicaid purposes, Medicaid’s five year look back period rule on gifts applies. This means that it is best if you can create and fund your trust at least five years before either you or your spouse are likely to need to apply for Medicaid.
In general, you have many more options if you plan well ahead of any illness. Don’t wait for a crisis to happen. With expert advice you can still plan and protect some assets even after a crisis has hit. But because of the Medicaid five year rule regarding gifts, many more options are available when you plan well in advance of any need for Medicaid.
How to Protect your Home from Nursing Home Costs – Part 1
The Home Protection Trust
The numbers are terrifying. If you are 65 or older you will probably need long term care at some time during your remaining life. Long term care is very costly. It can place a big financial, physical, and emotional burden on your family. Have you planned for the likelihood that you will need long term care someday?
Alzheimer’s disease is one of the main culprits. According to the Alzheimer’s Association, one in eight people age 65 and older (13 percent) has Alzheimer’s disease, and nearly half of people age 85 and older (45 percent) have Alzheimer’s. The likelihood of developing Alzheimer’s doubles about every five years after age 65.
According to the U.S. Department of Health and Human Services two-thirds of people 65 or older will someday need long-term care assistance at home, in an assisted living type facility, or in a skilled nursing home. Over 40 percent will need care in an expensive nursing home for at least some period of time. Currently the average annual cost of a semi-private room in a nursing home in Pennsylvania is over $97,000 a year. A private room costs more.
Many of us will be unable to afford to pay for the long term care we are likely to need as we age. Certainly few families can pay $100,000 a year to a nursing home. Fortunately, when you run out of money to pay for nursing home care, the government Medicaid program will usually pay.
The Medicaid Estate Recovery Problem
Since nursing homes are so expensive, most of their residents do run out of money and end up on Medicaid. But, when you die, Medicaid expects to be repaid for the money it spent on your nursing home or other long term care. It will force your home to be sold to pay the government back. This is called theMedicaid Estate Recovery program.
Most people want their home to go to their children or other family, not to the government. Many wonder whether there is anything they can do to protect their home from being lost if they end up needing long term care.
Finally, I have some good news: with expert planning, and especially if you plan in advance, seniors can ensure that their homes will stay in the family after their deaths and not be lost to estate recovery. Over the next month, I plan to post several articles that discuss different planning options that people are using to protect their homes from the Medicaid Estate Recovery Program.
Today’s post will discuss an option that is available to people who have the wisdom to plan in advance. It can be used to protect both the home and other assets, including investments, for your spouse, children or other heirs after your death. Let’s call this planning option The Home Protection Trust.
Trust has Advantages over Giving your Home to your Children
Medicaid Estate Recovery forces the sale of things, like your home, that you own when you die. So one way people try to avoid the recovery program is to give things away before they die.
People sometimes try to protect their homes from nursing home costs and estate recovery by giving the home outright to their children. They plan to rely on their children to “do the right thing.”
While this strategy may ultimately protect the home from Medicaid Estate Recovery, it carries many risks. It’s not as simple as it seems. One problem is that deeding your home to your children will make you ineligible for Medicaid for a long period of time. You may have no way to pay for that care. In Pennsylvania, under our State’s filial responsibility laws, the nursing home can then sue your children who may end up being personally responsible to pay for your care. (Many other states have similar laws).
Deeding your home to your children can also have significant tax disadvantages, and can put the senior at risk of losing the home in the event their child predeceases them or runs into financial or marital problems. More than once I’ve been consulted by a client who regretted having given their home to their child and ending up with their son-in-law or daughter-in-law as their landlord.
Usually, a better option is to deed the home so that it is owned by a trust rather than being owned by a child. [The term trust describes the holding of property by a trustee (one or more persons or a trust company or Bank) in accordance with the provisions you create in a written trust instrument.]
Using a trust, your property can be protected from estate recovery when you die, even after a long stay in the nursing home. And since your child is not the owner of the property it is protected from any bad things that may happen in your child’s life as well.
A trust allows you to protect your real estate (and other assets if you wish) from long term care costs while avoiding the risks and negative consequences of outright transfers to children. By transferring the home and other assets into a properly designed trust, you can still reserve some interest in and control over the transferred assets – advantages that are not available when transfers are made outright to a child.
For example, the trust will normally provide that you have the right to reside in the home for the rest of your lifetime. No one can throw you out or ask you to pay rent. You still own the home for tax purposes, so you can still deduct the taxes, and claim any property tax rebates. You can claim the residential exclusion from income tax if the property is sold during your lifetime. And your heirs can get a step up in tax basis if the property is sold after you die, which avoids or limits any income taxes they might have to pay.
The Trust Can Protect More than just your Home
Investments, such as stocks, bonds, bank accounts, and life insurance policies are also commonly protected through the use of this kind of trust. Because more than just your home can be protected this type of trust is given different names. You will hear lawyers sometimes refer to it as a “Family Asset Protection Trust,” or as an “Irrevocable Income only Trust (IIOT),” or as a “Medicaid Trust.”
Who Can Be Trustee?
People often name one or more of their children as trustees - this is kind of like naming someone in a power of attorney or an executor in a Will - the trustee doesn’t own the assets of the trust, they just manage them according to the terms you set up in the trust.
While most people name one or more family members as the trustee, you can also name a professional trustee like a bank. In any event, you can include a provision in your trust that allows you to fire the trustee and appoint a new one at any time. (I like to call this the Donald Trump “You’re Fired!” power).
This is Not your standard Revocable Living Trust
It’s important to note that a Home Protection Trust is very different than the standard revocable “living trust” that many people have already set up. Arevocable living trust does not protect your assets from nursing home costs. The Home Protection Trust is an irrevocable trust specifically designed to protect its holdings from loss if you ever have to apply for Medicaid to pay for your long term care costs.
When you transfer the things you want to protect to the trust you don’t have to sell them. You don’t have to change your investments. What you own now is merely moved under the protective umbrella of the trust. The trust can sell things held by it, and buy new things. If your home is held under the trust, and you decide to move, the trust can sell it and buy a new one.
Planning in Advance.
Because the Home Protection Trust involves the transfer of property for Medicaid purposes, Medicaid’s five year look back period rule on gifts applies. This means that it is best if you can create and fund your trust at least five years before either you or your spouse are likely to need to apply for Medicaid.
In general, you have many more options if you plan well ahead of any illness. Don’t wait for a crisis to happen. With expert advice you can still plan and protect some assets even after a crisis has hit. But because of the Medicaid five year rule regarding gifts, many more options are available when you plan well in advance of any need for Medicaid.
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