Page 8 - Palm City Spotlight - August '20

Page 8, Palm City Spotlight DOUBLE SPACE

financial focus

Facing Illness as adding investments that can provide an income stream that to consider a health care proxy, which appoints an individual

kicks in when you think your costs will rise. to make medical decisions for you if you can’t. In creating or
By Bryce Buchanan, Insurance – Depending on your health status, you may revising these documents, you’ll need to consult with your legal
Edward Jones be able to collect Medicare earlier than the traditional starting professional.
In light of the coronavirus point at age 65. Even so, you’ll likely need to supplement it with Taxes – You might qualify for Social Security disability
pandemic, virtually all of us additional coverage. But you may also want to look beyond payments, which, like other Social Security benefits, are taxable,
have considered health-related health insurance. For example, you might be able to purchase a so you’ll need to be aware of what you might owe. But you might
issues. But for people facing “chronic illness rider” that allows you to tap into life insurance also be eligible for some tax breaks related to your condition. If
a serious, chronic illness, benefits while you’re still alive. Or you might consider adding a you still itemize tax deductions, you may be able to deduct some
such as Parkinson’s disease, “long-term care rider” to a life insurance policy; this rider offers medical expenses, as well as certain home improvements, such
multiple sclerosis, diabetes financial benefits if you ever require daily care that you can’t as wheelchair ramps, bathtub grab bars, motorized stair lifts and
or cancer, health concerns are provide for yourself. And some foundations, states and drug so on. Your tax advisor may have suggestions appropriate for
an everyday matter. If you’re companies offer programs that can help pay for some costs that your situation.
fortunate, you may never be your insurance won’t cover. Dealing with a chronic illness is never easy. But by
afflicted with such maladies, but the future is unpredictable. Of Legal arrangements – If you haven’t already done so, you considering how your illness will affect all aspects of your life,
course, going through these health challenges bring physical may want to establish the legal documents most appropriate for getting the help you need, and taking the right steps, you may
and emotional concerns – but also financial ones. How can you your situation, such as a durable power of attorney for finances, be able to reduce the financial stress on youself and your loved
prepare for them? which gives someone the authority to manage your financial ones.
Essentially, you’ll need to consider four key areas: affairs if you become temporarily incapacitated, possibly due to This article was written by Edward Jones for use by your
investments, insurance, legal arrangements and taxes. Let’s take flareups of your chronic disease. Once you’ve recovered, you local Edward Jones Financial Advisor, Edward Jones, Member
a quick look at each of them: regain control of your financial decisions. You might also want SIPC.
Investments – You’ll likely need to draw on your investments
for at least some of the expenses associated with your illness.
So, within your portfolio, you may want to establish a special lEgal talk
fund devoted entirely to these costs, whether they be health care,
modifications to your home, transportation and so on. A financial
professional can help you choose investments for this fund, as
well as make recommendations for your overall investment Asset Protection – Taking both spouses. It’s only available while assets remain in
strategy, including techniques for boosting your income, such Advantage Of The ‘Free’ this form of ownership.
In Florida, a judgment can remain valid for many
Answer for Options Florida Provides years. If, during the time the judgment was valid,
tenancy by the entireties’ assets were no longer jointly
Crossword Puzzle By Ryan Abernethy owned – either due to death of a spouse or divorce – the
We’re often asked
outstanding judgment would at that time instantly attach
how best to protect to the unprotected asset.
assets from the reach of Joint ownership isn’t always appropriate. In second
future potential judgment marriages or “blended families” (each spouse has
creditors. children from prior relationships), a goal may be to
The best way is to include “control” provisions in estate planning that
terminate all contact prevent a surviving spouse from fully controlling all
with the outside world assets that pass to them upon the death of a spouse or to
(potential creditors): alter the eventual disposition of assets upon the surviving
no business dealings, spouse’s subsequent death.
no borrowing or credit However, in a family situation where both spouses
transactions and of course – no driving or ownership of intend for all jointly owned assets to pass to the surviving
any vehicle. spouse under the surviving spouse’s full control, joint
Unfortunately, that’s not possible. While there are TBE ownership of assets provides a simple way to
advanced “wealth preservation” strategies that may be establish some basic level of asset protection.
designed and implemented to increase protection from Florida law additionally (generally) fully exempts
“litigation risk” (measures that we frequently utilize to one’s homestead property from the reach of creditors.
provide additional protection for our clients), Florida law It protects 100 percent of the homesteaded property’s
provides several “free” asset protection opportunities. value up to a ½-acre located within a municipality and
One of the most powerful of these is the ownership up to 160 contiguous acres outside of a municipality.
of assets as a “tenancy by the entireties” (TBE). It also provides protection to assets held in qualified
In Florida, married couples jointly owning real estate retirement plan accounts (IRA and 401(k) accounts) and
or other assets may do so in a legal form of ownership annuity contracts.
Palm City Auto known as tenancy by the entireties’ ownership. If appropriate, these opportunities can provide
important asset protection. It’s crucial to meet with a
If you’re a Florida resident, so long as assets are
Lube & Services jointly owned between spouses, a judgment creditor of qualified attorney or financial advisor to ensure that your
one spouse can’t attach or otherwise gain ownership of
assets are “owned” or “invested” to take advantage of
assets owned by the married couple as tenants by the protections offered by Florida.
entireties, so long as the assets remain in that form of Ryan C. Abernethy, associate attorney and counselor
The DiTerlizzi Family of Companies ownership. at law at Abernethy Law Group, 130 S. Indian River
Drive, No. 201, Fort Pierce can be contacted at (772)
This form of protection is not perfect. For example,
489-4901 or rabernethy@abernethylawgroup.com.
it wouldn’t protect against a judgment entered against
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