Winston-Salem Business Magazine - January 2008 - (Page 27) upon the estate. Consider exploring other means of protecting your parents’ (and your own) assets, including long-term care insurance, annual cash gifts and bypass trusts. A bypass trust stipulates that when the first spouse dies, his or her assets go into a trust, that the surviving spouse can use as needed. When the other spouse passes away, all trust assets pass to heirs free of estate taxes through a one-time exemption. A bypass trust involves changing a will, so it must be set up by your parents and not by power of attorney. Prepare for children’s college expenses. If you find that you are in the position of caring for your parents financially as well as saving for your children’s education, you’ll definitely feel a financial squeeze. The key here is to start saving for college as early as possible to take advantage of years of tax-deferred growth through compounding. Even if you contribute only a small amount of money to your child’s college fund each month, you will be surprised at how quickly it will grow. And remember, there is always the possibility of financial aid, grants or scholarships to ease the financial burden of paying for college. Don’t neglect your own finances. Though caring for your parents and saving for college are certainly important goals, don’t sell yourself short. You need to make your own health and well-being is a priority. Continue to prepare for your own retirement needs and explore the qualification requirements for flexible savings accounts and dependent care tax credits. Depending on the parameters of your specific situation, you may be eligible for additional tax savings. When you are caught in the middle of family needs and obligations, physical, emotional and financial pressures are common. If you find the situation is more than you can handle or are unsure of how to allocate funds to fulfill different needs, a professional financial advisor can work with you to develop a plan that addresses the unique challenges of your situation. You can minimize stress and frustration by planning ahead, maintaining balance and keeping your perspective. This information is provided for informational purposes only. The information is intended to be generic in nature and should not be applied or relied upon in any particular situation without the advice of your tax, legal and/ or your financial advisor. Neither Ameriprise Financial nor its advisors or representatives provide tax or legal advice. The views expressed may not be suitable for every situation If you find that you are in the position of caring for your parents financially as well as saving for your children’s education, you’ll definitely feel a financial squeeze. Where are you headed? Do you need: • Career Coaching • Sales Training • Professional Refining Let Cathy help you sort it out! Cathy Seaver Sales Trainer & Coach 926•4733 Enhancement • Refinement 27 WINSTON-SALEM BUSINESS | http://www.bleurestaurantandbar.com http://www.bleurestaurantandbar.com
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