A family illness can have a significant impact on your family business. The unfortunate truth is that most people will have to care for a loved one at some point in their life. Providing that care can place a large burden on a person's mental health, as well as their finances. That is why it is crucial to plan ahead in order to reduce the stress of the situation.
The mental and emotional stress of providing care is often overlooked. Feelings of guilt, responsibility, dependence, responsibility, shame, anger, and envy which are all apart of caregiving can rip families apart. It is no wonder that many studies reveal that providing care may contribute to coronary heart disease, depression, along with the abuse of alcohol and prescription medications.
Caregiving can also have a negative effect on your family finances. Studies suggest that the average nursing home cost is around $72,000 annually. The average stay is usually 3 years.
Even if you choose to take care of your loved one yourself, the costs can still be considerable. For example, research studies indicate that wage, Social Security, and pension losses due to caregiving is on average $304,000. In realizing this potential situation, we can understand how a sickness can seriously impact your family finances, harmony, and dignity.
Most professionals suggest having a discussion with all members of your family to develop a plan for dealing with caregiving, should the necessity arise. You may wish to include your advisers in the meeting, as well. There are two principal goals that should be addressed in the plan. First, is to protect the emotional and physical well-being of your loved one by managing their care, and not necessarily giving it. Developing a plan for preserving your family's finances should be the second objective. A effective way to do that is to have a third party finance the care.
purchasing a long-term care policy to provide benefits for home health care or long-term care may be a part of the answer. There may be substantial tax benefits if your family business pays the premiums. For instance, if you own a C corporation, you are allowed to develop a plan that will cover business owners, along with their spouses, and select key employees. The fees may be tax deductible to your business, and if certain conditions are met, the benefits could be tax-free.
Many individuals choose to finance the long-term care policy over the course of their life. However, business owners often elect to pay the insurance over a shorter period, perhaps 10 years. This plan lets them pay for the costs while they are still working, in a tax-advantaged way. The tax implications vary according to the form of business involved. Seek the advice of an accountant to be certain that you are adhering to the laws.
It is obvious that providing care for an ill family member can be a challenging time in one's life. It can affect many areas of a family and a business. By having open communication with your family, deciding who will provide the care, what type of care to provide, and how to pay for that care, you will help keep your family, business, and finances intact.
The mental and emotional stress of providing care is often overlooked. Feelings of guilt, responsibility, dependence, responsibility, shame, anger, and envy which are all apart of caregiving can rip families apart. It is no wonder that many studies reveal that providing care may contribute to coronary heart disease, depression, along with the abuse of alcohol and prescription medications.
Caregiving can also have a negative effect on your family finances. Studies suggest that the average nursing home cost is around $72,000 annually. The average stay is usually 3 years.
Even if you choose to take care of your loved one yourself, the costs can still be considerable. For example, research studies indicate that wage, Social Security, and pension losses due to caregiving is on average $304,000. In realizing this potential situation, we can understand how a sickness can seriously impact your family finances, harmony, and dignity.
Most professionals suggest having a discussion with all members of your family to develop a plan for dealing with caregiving, should the necessity arise. You may wish to include your advisers in the meeting, as well. There are two principal goals that should be addressed in the plan. First, is to protect the emotional and physical well-being of your loved one by managing their care, and not necessarily giving it. Developing a plan for preserving your family's finances should be the second objective. A effective way to do that is to have a third party finance the care.
purchasing a long-term care policy to provide benefits for home health care or long-term care may be a part of the answer. There may be substantial tax benefits if your family business pays the premiums. For instance, if you own a C corporation, you are allowed to develop a plan that will cover business owners, along with their spouses, and select key employees. The fees may be tax deductible to your business, and if certain conditions are met, the benefits could be tax-free.
Many individuals choose to finance the long-term care policy over the course of their life. However, business owners often elect to pay the insurance over a shorter period, perhaps 10 years. This plan lets them pay for the costs while they are still working, in a tax-advantaged way. The tax implications vary according to the form of business involved. Seek the advice of an accountant to be certain that you are adhering to the laws.
It is obvious that providing care for an ill family member can be a challenging time in one's life. It can affect many areas of a family and a business. By having open communication with your family, deciding who will provide the care, what type of care to provide, and how to pay for that care, you will help keep your family, business, and finances intact.
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