Archive for July 13th, 2007

The largest financial risk that seniors face today is the potential of assisted living and nursing home costs to devour the nest egg that has taken a lifetime to build. Many will end up relying on Medicaid to pay these costs. If thats the case for you, chances are that Medicaid will come after your home when you die.

Before you get alarmed, make sure that you are not confusing Medicare with Medicaid. Medicare, available to seniors who have paid into the governments Social (more…)

Last week I explained in theory how you can legally avoid paying taxes on gifts and inheritances. Avoiding taxes on gifts and inheritances is based on cost-basis. To help you apply this to your situation I want to share some real-life examples of how my clients use these principles to legally avoid paying taxes on gifts and inheritances.

First, lets briefly review cost-basis. When you receive an asset as a gift and sell it, you are responsible for paying capital gains tax (more…)