Jon P. Beyrer
Certified Financial Planner, EA
Jon P. Beyrer, CFP, EA, is a personal financial adviser, specializing in comprehensive financial planning and investment portfolio management. He is a partner of Blankinship & Foster, LLC, a fee-only wealth advisory firm in Solana Beach, California. He holds a Master of Science Degree in Financial and Tax Planning.
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Question
My husband and I were awarded guardianship and conservatorship of his father. How to I file taxes for his paym...
Yes, the payments you receive as guardian and conservator are compensation for your fiduciary duties. They are taxable for federal... Yes, the payments you receive as guardian and conservator are compensation for your fiduciary duties. They are taxable for federal purposes and, in all likelihood, your state, too. Typically, you can just report the income as "Other" income on your tax return. However, if the services you perform are extensive enough that you are considered to be running a business, you could be "self employed", and the income could be subject to self employment taxes. Reimbursement of expenses you incur in connection with the guardianship and conservatorship are typically not considered income. see more
Question
My mom's trust states that when she can no longer take care of herself, I will have POA. Should we find an at...
Yes- if not an attorney in the same county than at least one the same state. If you are named as the Successor Trustee in your Mom's... Yes- if not an attorney in the same county than at least one the same state. If you are named as the Successor Trustee in your Mom's trust or as the Agent in her Power of Attorney, it's best to consult with an attorney to see what your powers will be and what your duties and expectations will be. If your mom has both a trust and a power of attorney, are you named on both? If not, you'll want to talk with the attorney on how to coordinate with the other person that's named. see more
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Can I delegate POA to some else?
In general, powers of attorney are meant to be used specifically by one person: the Agent or "Attorney In Fact". If the agent... In general, powers of attorney are meant to be used specifically by one person: the Agent or "Attorney In Fact". If the agent cannot act, the document should name a successor or contingent agent. As the agent, if you work with other advisors, you're still responsible for the work they do and the advice they give. see more
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I'm afraid my sister is trying to steal all of my mom’s money by being on joint accounts with her. What can I...
farishta, This is a difficult situation, and unfortunately, having an attorney’s advice and representation is critical. You should involve... farishta,
This is a difficult situation, and unfortunately, having an attorney’s advice and representation is critical. You should involve the local police department or sheriffs department where your mom lives if: You are sure your sister’s actions are fraudulent or unlawful, you are sure your mother agrees, and you are convinced there is no other way to resolve things. See if they have an elder abuse or elder crimes division and contact them. Have specifics and concrete evidence if possible- such as if your sister went directly against wishes expressed by your mom, or if things she purchased with your mom’s money are obviously for her own purposes. see more
This is a difficult situation, and unfortunately, having an attorney’s advice and representation is critical. You should involve the local police department or sheriffs department where your mom lives if: You are sure your sister’s actions are fraudulent or unlawful, you are sure your mother agrees, and you are convinced there is no other way to resolve things. See if they have an elder abuse or elder crimes division and contact them. Have specifics and concrete evidence if possible- such as if your sister went directly against wishes expressed by your mom, or if things she purchased with your mom’s money are obviously for her own purposes. see more
Question
What is the tax basis of my parents home if they put it in a trust?
The cost basis of their home, if they bought the home, is generally what they paid for it, plus the cost of improvements they can document,... The cost basis of their home, if they bought the home, is generally what they paid for it, plus the cost of improvements they can document, such as a remodel or room addition. If they put their home into a trust, the cost basis will typically be that same number. However, what happens to the cost basis after that depends on what type of trust they put it into. If it's a revocable living trust, the basis typically changes at death. If they take the (much bigger) step of putting it into an irrevocable trust, the basis typically "freezes" at that point and doesn't change. Another thing that can affect the basis is if the home is used as an investment property- things like depreciation can have an effect on the cost basis. Please note: this is not meant to be any form of tax advice, just general thoughts on the subject. For specific advice on the cost basis, your parents should consult their tax professional. see more
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I am my father's Social Security representative. Does that make him my dependent?
The term "dependent" can mean different things, but when filing income taxes, a person is your dependent if you provide more than... The term "dependent" can mean different things, but when filing income taxes, a person is your dependent if you provide more than half of the person's support, among other requirements. See www.irs.gov Publication 17 for more details on all the requirements. see more
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If my daughter has Power Of Attorney for all my affairs can my other children ask medical doctors questions ab...
The federal government put strict privacy laws in place to protect American's health information. Healthcare providers are bound by... The federal government put strict privacy laws in place to protect American's health information. Healthcare providers are bound by these laws, known as HIPAA laws, and so usually they will give health information to a patient or the patient's spouse only. For anyone else to get information, that person will need to be named as the agent in a Medical Power of Attorney (not a financial Power of Attorney). This document is also called an Advance Health Care Directive. If you want your daughter to be able to make healthcare decisions but you don't want other people to, be sure you've named your daughter in a Medical Power of Attorney/ Advance Health Care Directive. Also be sure and discuss with your primary physician that you don't want your information released to anyone else. see more
Question
I recently heard that a Power of Attorney means nothing is this true?
A properly drafted (and signed) power attorney can be very effective for what it's meant to do: Authorize an agent to make financial... A properly drafted (and signed) power attorney can be very effective for what it's meant to do: Authorize an agent to make financial decisions for the principal. POAs are typically not effective for medical decisions- hospitals and doctors are governed by privacy rules and will typically require a medical POA (also called an Advance Health Care Directive). Also, a POA that only takes effect on the principal's incapacity won't work unless the agent has proof that the principal has been declared incompetent by a court or by a doctor. And, if the principal has been declared incompetent, the POA must be Durable, meaning it continues after the principal's incapacity. Finally, the institution that you're giving the DPOA to, such as a bank or brokerage company, does not have to accept a POA if they don't like the language. So, if your relative wants to give you POA, make sure it's the right kind of POA, whether your relative wants to give you power to act now or only after being declared incompetent, and that the institutions you'd need to use it with will accept the document. see more
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As legal power of attorney for my 86-year-old Aunt, can I move her to an assisted living facility?
An assisted living facility will have a number of forms they require to be signed before your Aunt can move in. Whether they'll accept... An assisted living facility will have a number of forms they require to be signed before your Aunt can move in. Whether they'll accept only your signature on the forms will depend on a few things: The facility in question, the Power of Attorney document itself, your aunt's mental capacity, and how willing your Aunt is to making the move. A Durable Power of Attorney typically gives the agent broad power to act on financial decisions (provided it is in effect now-some POAs don't take effect until the principal has been declared legally incapacitated), but not medical decisions. I'd recommend starting with a facility you'd like to mover her to, meet with their administrative people and find out their policies on accepting only an agent's signature. If it appears they would accept only a POA agent's signatures, ask them to review your document and confirm they will still accept your signature. see more
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Can I legally file for guardianship of my elderly parent with Alzheimer's without hiring an attorney?
You may technically be able to file for guardianship or conservatorship in your state, but it really needs to be done by an attorney who is... You may technically be able to file for guardianship or conservatorship in your state, but it really needs to be done by an attorney who is familiar with the process. This is a specialized area of law and the rules are different in each state. If affordability is an issue, contact your state bar association (or visit their web site) and ask for pro bono (free) legal representation for you and your parent. Also try this website: StateBarAssociations.org - it lists pro bono legal assistance organizations for each state. If you can't get an attorney to help for free, check out the fact sheets on your state bar or county bar's website, and look for free workshops or clinics they provide on filing for guardianship or conservatorship yourself. see more
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Will my mother still be eligible for Medicaid if I claim her on my taxes?
If you claim your mother as a dependent on your tax return, it won’t affect her Medicaid eligibility in future years. But you may run into... If you claim your mother as a dependent on your tax return, it won’t affect her Medicaid eligibility in future years. But you may run into problems claiming her as a dependent in the same year as she’s receiving Medicaid benefits. If the dollar value of Medicaid services exceeds half of your parent’s support, you can’t claim her as a dependent. Medicaid eligibility requirements are different from state to state, so you’ll want to talk to your state’s department of Human Services about it. see more
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Can a senior citizen who pays for a home care aid write off any of this on a tax return?
You can deduct as medical expenses the cost of nursing services provided at home. But you can’t deduct the cost of personal or household... You can deduct as medical expenses the cost of nursing services provided at home. But you can’t deduct the cost of personal or household services provided, such as cooking, cleaning and such. If the senior qualifies as “ chronically ill”, the costs of maintenance and personal care services are deductible too. See IRS publication 502- Medical and Dental Expenses, for more details. see more
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I will be paying for a private companion for my elderly father. Do I have to be concerned with paying employme...
You generally must withhold Social security and Medicare taxes from wages you pay an employee, but not from money you pay an independent... You generally must withhold Social security and Medicare taxes from wages you pay an employee, but not from money you pay an independent contractor. A worker is an employee if you can control not only the work they do but how they do it. see more
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How much money can a daughter give her mother without it impacting taxes?
The amount any one person can give another person in 2011 without having to file a gift tax return is $13,000. If you are married, you and... The amount any one person can give another person in 2011 without having to file a gift tax return is $13,000. If you are married, you and your spouse can each give that person $13,000 in a year. If you go beyond the $13,000 limit, it doesn't mean you'll have to pay gift taxes- everyone gets a $5,000,000 lifetime exclusion from gift taxes. There is no maximum amount if you are paying the other person's medical expenses directly. see more
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Can a local government declare you a "business" and charge taxes from income for caring for your own mother in...
Caring for your mother in your home is not a business in of itself. If your mother pays you for the care, it is considered self employed... Caring for your mother in your home is not a business in of itself. If your mother pays you for the care, it is considered self employed income (and expenses you pay for her care are deductions from the income) that you would report on Schedule C of your tax return. If she gives you gifts unrelated to the care, the gifts are not income. But if she pays you regularly and her intent is to compensate you for the care, you should report it as income. see more
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I was given some property gift taxes that are owed on. Am I or the estate responsible for those being paid?
The estate, not you, is responsible for paying any gift taxes. However, there will only be gift taxes if its a very large estate. In 2011,... The estate, not you, is responsible for paying any gift taxes. However, there will only be gift taxes if its a very large estate. In 2011, decedents have a $5 million exemptions from estate taxes. see more
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My mother lives with us and I'm her legal caregiver. If I pay for her care, can I claim this money on my taxes...
You should be able to take deductions for medical expenses you pay for your mother, if she is considered your dependent. She would be... You should be able to take deductions for medical expenses you pay for your mother, if she is considered your dependent. She would be considered your dependent if you’ve provided over half of her support. The deductions are taken on Schedule A of the tax return. You may also be able to take a dependent exemption on your taxes. See IRS Publication 502 for details and specifics. see more
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My wife's dad pays her for caregiving from his VA pension. How do we claim this income on our tax return?
If your father is paying you for his care, you should report the income as self-employment income. You can deduct expenses you incur in... If your father is paying you for his care, you should report the income as self-employment income. You can deduct expenses you incur in providing the service, such as food, supplies, and other expenses for her care. The income and expenses would be reported on Schedule C of your income tax return, and you will also need Schedule SE to pay self-employment tax on the net income. see more
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I have Durable Power of Attorney for my father and he receives SSD benefits. Can I apply for taxes (1040A) on...
You can file taxes for your father, and sign the returns for him under your power of attorney. You will need to attach the power of... You can file taxes for your father, and sign the returns for him under your power of attorney. You will need to attach the power of attorney to the tax return. If possible, you should use the IRS power of attorney form 2848, and the equivalent for your state taxes. This is a POA specifically for tax filing. You can attach a general POA instead, but you run the risk of the IRS and/or state not accepting it. see more
A high priced elder law attorney said -SPOUSAL REFUSAL--was a way to avoid nursing home impoverishment--is thi...