Very few people in the early stages of memory loss (generically called dementia) will recognize their need for assistance with personal care and other activities. Most people with memory impairment will not be the ones initiating a move to assisted living or nursing home facilities. It is the family of the person with memory impairment who will recognize the need to move, find a place and make the final decisions.

There are no major signs that will tell you that “this is the right time” to make such a move. Generally, it is brought to a head in a crisis, and that is when it leaves less choices as to the setting of assisted living, be it home with home care workers, an “assisted living” facility (for which there is no legal definition of what an assisted living facility is) or a nursing home.  The reasons family decide to move their family member with memory impairment are:

1.    The person with memory loss is no longer safe in his or her current residence.
2.    Emergency and crisis situations have arisen.
3.    Family members are not able to provide the necessary level of care due to other family circumstances or geographic distances.
4.    The current level of supervision and assistance is too great for a family member to provide or is too difficult to manage and supervise others to do.

Finances play a major role here as well.  Most people in the USA will not be able to afford private home health services or private assisted living facilities because of the high monthly costs.  Thus, for more than the majority of Americans, nursing homes are the only choice.

Nursing homes are the only setting in most of the USA that are paid for by public assistance programs under Medicaid.  Medicaid, unlike Medicare, is a means tested and medically tested program, meaning that one must qualify financially as well as medically to receive nursing home care paid for by Medicaid.  Also, since Medicaid is a State and Federal program, the 50 United States are really 50 separate countries in terms of eligibility for Medicaid.

Some states have implemented Medicaid ‘waiver’ programs.  This waiver allows the State to use funds for nursing home care to provide some other care, such as home care, and to a limited extent in some states, assisted living facilities.  Problem is the home care benefits under this program are NOT  24 hour a day services, and the few assisted living facilities that are participating in these programs do not receive adequate reimbursement from the State, and so most operators may only have a limited number of rooms available to a Medicaid beneficiary. Some states will use this waiver program to employ family members to take care of a family member.

There are many psychological and social obstacles to moving to a residential care facility.  One is media depictions of long term care, and the abuses that have occurred. Others, including the wedding vows that include “in sickness and in health, ‘til death do us part.”  Many spouses feel guilty and that they have violated their vows by not taking care of their spouse at home, and this can lead to other programs of self neglect, abuse and possible financial elder abuse or exploitation.

Children sometimes have the notion that “that my mother cared for me, now it is my turn”.  Raising children and caring for someone with dementia are not equivalent, and, again, can lead to neglect, abuse or exploitation of a demented family member.

Family and friends may criticize and reinforce guilt and pain with their ignorance of care giving or the special medical and psychiatric issues of caring for someone with dementia. Many times those outside of the direct care giving may be having difficulties themselves with accepting dementia and the declining health of their friend or family member.

As you consider this difficult decision keep this in mind:

1.    You are not alone.  This is one of the hardest decisions to be made.
2.    There are no clear rights and wrongs when it comes to caring for someone.
3.    Caregiving does not end once you place a family member in a facility.
4.    Your adjustments to this decision is just as difficult as your family member’s adjustments, and theirs can be harder the farther along their diseases have progressed.

While it is often true, that no one can care for your family member as well as you can, if you don’t get your rest, take vacations (called respite) and otherwise get others to help you, you will not live long enough to care for your family member in a facility or at home.

This is why it is important to have an objective, fee only, advocate and advisor to help you sort and decide on the proper course of actions. Providers of home care services, and nursing home, assisted living facilities and others are not objective and may cause you to overlook very important details that need to be considered in this difficult decision.



When making long term care decisions, many people seek the advice of financial planners to decide if they have the ability to pay for it and what is involved in the process. 

JavaScript is disabled!
To display this content, you need a JavaScript capable browser.




The North American Free Trade Agreement (NAFTA) treaty of 1994 opened many opportunities for Americans and Canadians to buy and own real estate in Mexico.  Mexico is an exciting place to consider retirement living, a vacation home or even a permanent, principal residence for those who live close to the border between Mexico and the USA.

There are a few things you need to take into consideration when planning purchases of condominiums or single family dwellings:

1.    Select the community that fits you.  How will you be traveling to this location, by air, boat or car?

2.    Examine the neighborhood to see the community services near by, as well as how water, electricity and other utilities are delivered to your potential home.

3.    Understanding the titling and use of a Fideicomiso.  Mexican laws do not allow foreigners to directly own property within certain restricted zones, defined as within 100 kilometers (approximately 62 miles) of the border area, and within 50 kilometers (approximately 31 miles) of the coastal areas.  In these restricted areas, foreigners must have a Mexican Bank Trust, called a Fideicomiso, hold title of the property for you.

4.    Because of holding title in a foreign trust, Americans must file form 3520A with the Internal Revenue Service every year, as you would be a grantor or a beneficiary of a foreign trust.  There are other IRS requirements if you have a Mexican bank accounts or other accounts outside the USA, so be sure to have a competent tax  professional well versed in foreign taxes on your team of advisors.

5.    Many American real estate brokers have offices in Mexico as well as American mortgage companies, making it easier to do business.

6.    For retirees who choose to live year round in Mexico, you can continue to receive Social Security benefits, but unfortunately, you cannot use Medicare to cover health care.  You can use private American issued health insurance.  If you give up your residency in the USA, and then later return, you will need to re-establish residency in order to reinstate your Medicare coverage.  For this reason, most Americans return to the USA every year and maintain residency in the USA. There is public health insurance in Mexico that Americans and others can purchase.  It is interesting to note: you can maintain your citizenship in the USA without having residency.  The 50 different States have different and sometimes difficult hoops to jump through to sever residency.

With nearly 2,000,000 Americans now living full time in Mexico, many real estate developments are catering to Americans.  Other services, such as medical and dental care, long term care, and others, are very affordable for retired Americans, and are often times provided by Americans who operate professional practices and businesses in Mexico. There are more retirement communities being established near resort areas, and in other areas that are now becoming new tourist destinations.

Retiring and living outside the USA has many benefits and challenges.  Similar to people retiring and moving to a State in the USA with lower costs of living (and possibly no state income taxes such as Tennessee, Nevada, Idaho, or Florida), living outside the USA can have lower costs overall.  It’s worth looking into.



There are six areas to review during a Comprehensive Geriatric Assessment. In this video, Chris Cooper discusses legal issues facing the elderly and their families such as understanding legal documents in a medical care-type setting.

JavaScript is disabled!
To display this content, you need a JavaScript capable browser.



Tags roth - conversion - IRA - TIPRA

Prior to 2010, only taxpayers with adjusted gross incomes below $100,000 were eligible to convert a traditional IRA to a Roth IRA.  But as of January 1, 2010, the $100,000 adjusted gross income restriction was eliminated as a result of the Taxpayer Increase Prevention Act (TIPRA) enacted on May 17, 2006.  Under TIPRA, taxpayers who had previously been ineligible to contribute to a Roth IRA are now eligible to convert not only their traditional IRA accounts, but also 401(k), 403(b), and 457 accounts to Roth IRAs (assuming the account-holders are otherwise eligible for a qualified plan distribution). 

Converting a pre-tax account to an after-tax Roth IRA requires payment of income tax on the amount converted.  For conversions made during 2010, taxpayers are eligible to defer the reporting of taxable income to the next two tax years.  In other words, 50% of the converted amount will be reported on the taxpayer's 2011 return and 50% will be reported on the 2012 return.  The opportunity to defer the reporting of income exists only for 2010 conversions.  Alternatively, taxpayers may elect to report 100% of the converted amounts on their 2010 returns and pay the tax all in one year.

With a little creative planning, the new rules present the following opportunities:

•        Risk-free conversion.  A taxpayer who converts all or a portion of a traditional IRA in January, 2010 may evaluate whether the conversion was a good idea until October 15, 2011 (assuming the taxpayer extended the due date for his or her 1040).  If the account value decreased from the amount that was converted (i.e., the taxable amount) the taxpayer may recharacterize the Roth IRA back into a traditional IRA to avoid paying tax on dollars that no longer exist. 

•        Avoid RMD's.  Because Roth IRA's do not require mandatory distributions beginning at age 70½, assets in a Roth IRA account may grow, tax free, throughout the taxpayer's lifetime.

•        Annual Contributions.  A taxpayer who is ineligible to contribute to a Roth IRA because of AGI limitations may now contribute to a traditional IRA and simply convert the contributed dollars to a Roth IRA during the same tax year.

•        Estate Tax.  Another advantage to the Roth IRA conversion is that income taxes paid on the conversion are paid with pre-estate tax dollars.

•        Charitable Giving.  A taxpayer with a charitable deduction carry-forward or a taxpayer who desires to make a large charitable gift could utilize the charitable deduction to produce an off-setting 50 percent (or 30 percent or 20 percent depending on the type of charitable deduction) income tax deduction which would serve to potentially off-set some of the income tax cost of the conversion.