Glen Jackman – Page 6 – Adviceon Library

How Estate Taxes reduce your heirs inheritance

These Estate Fees and Taxes can Reduce an Estate’s Value:

Probate Fees These fees (now to be called Estate Administration Fees (EAT) in Ontario) are essentially taxes charged by the provinces for confirming that a will is valid, and the executor has the authority to act, referred to as “Letters of Probate” (essentially a tax on your estate). Probate/EAT fees and taxes could be as high as 1.5% of your estate limited only in Quebec, Alberta, and the Territories.

Deferred Sales Charges (DSCs) at Death Generally no charges are applied to Segregated Fund and Term Fund policies at the time of death.

Legal and Executor Fees Legal and executor fees range from 3% to 6% of the estate. These fees are paid to the executors who are responsible for many complexities such as locating the will, arranging the funeral with the family, assessing and determining names and addresses of beneficiaries and next of kin, finding the assets and liabilities, and tax return preparation.

Accounting Fees Significant estates can be very complicated. Thus, an accountant may need to file the final tax returns to ensure the orderly transition of assets and reduction of liabilities for the Executor/Trustee. An accountant’s fees can run upward to another 6% of the total assets.

Life insurance policies, segregated fund and term fund policies with a named beneficiary, do not form part of the estate and are not subject to any executor, legal or trustee fees because these proceeds are distributed directly to named beneficiaries. This means the accounting fees can be reduced during the estate’s assessment.

Note: Registered investments bypass probate. This may not apply in certain provinces, and advice should be sought from a tax specialist and/or an advisor.

The Joy of Planned Giving

For centuries, people have made efforts to help the less fortunate. The singer of U2, Bono, has been involved in many issues throughout the years and supports erasing Third World debt to wealthy countries. Michael Jordan is involved with a variety of charities including the Boys & Girls Club of America, UNCF/College Fund, Special Olympics and organizations that support children and families. Bill and Melinda Gates focus on areas dedicated to improving people’s lives by advancing health and learning efforts in the global community.

You do not have to be famous and wealthy to get involved — everyone can! For a small monthly, tax-advantaged donation of $25 to $100, you can help a child through an NGO such as World Vision. There are many such Non-Government Organizations (NGOs) that help people worldwide when and where disaster strikes.

Planned Giving

Planned giving raises funds through a program of arranging regular systematic donations to serve the interests of a registered charity that best suits the personal, financial and tax situation of an individual donor. Via planned-giving programs, registered charities seek to attract substantial gifts by presenting potential donors with information and advice. You can include the following is your planned-giving program: bequests, annuities, life insurance policies, and residual interests or charitable remainder trusts. Segregated funds work well because they can guarantee the invested capital (plus any growth) upon the death of a donor.

Charitable remainder trust.

A charitable remainder trust involves transferring property into a trust whereby the donor retains a life interest in the property but makes an irrevocable gift of the residual interest to a registered charity. A registered charity can issue an official donation receipt for the fair market value of the residual interest in the property at the time that the residual interest vests to the charity.

How to donate a life insurance policy to a charity.

When an individual absolutely assigns a life insurance policy to a registered charity and makes the charity the registered beneficiary of the policy, the charity can issue an official donation receipt for the cash surrender value of the policy at the time of donation and for the subsequent payment of premiums.

RRSP as an enduring property.

Under the Income Tax Act, a charitable donations tax credit can be claimed on a deceased individual’s return for a donation via a direct distribution of his or her proceeds to a qualified donee who is the designated beneficiary of a registered retirement savings (or income) plan (RRSP/RRIF), a registered retirement income fund (RRIF), or a life insurance policy. Under the Act, a gift received by a registered charity by way of direct designation is a gift of enduring property.

Donating a Registered Pension Plan (RPP).

An individual can designate a registered charity as their beneficiary of a registered pension plan. A charity can issue an official donation receipt for lump-sum pension benefits paid to the charity.

Note: Ask your Advisor if any legislation has changed this.

Charitable Giving using Life Insurance

Generosity is for everyone. All it takes is a willing spirit and the courage to be used for something greater than ourselves. ¹

Permanent life insurance is a cost-effective way to make a much more significant contribution to the charity of your choice than would otherwise have been possible. Gifting a new policy or an existing policy can help the charity of your choice. Determine what charity aligns with your life purpose and will bring you the most satisfaction.

There are two effective methods to achieve this. One is an outright gift of a life insurance policy, making the charity the policy owner. The second is gifting the death benefit proceeds while you retain ownership.

1. Making the charity the owner of a life insurance policy

This strategy also side-steps some potential problems if such a legacy is made via your estate.

You purchase a policy on your life, making the charity the owner and beneficiary.
Only the charity can change the beneficiary.
The charity as the established owner of the policy mitigates any dispute over ownership by other heirs once you die.
You make donations to the charity that then pays the premiums.
You can receive a tax break for the premiums you’ve paid via the charity.
The charity receives all of the death benefit proceeds when you die free of tax.
The benefit payout cannot be contested, taxed, or claimed by your creditors.
The capital death benefit guarantees payout to the charity, and in some cases, the death benefit may grow over time. The death benefit is paid tax-free to the charity of your choice.

The tax benefits while you are alive When the charity owns the policy, under Canadian tax legislation, you can receive a tax break for the premiums that you’ve paid during your lifetime, insofar as they are made after the charity owns the policy. In addition, you can receive a tax receipt for the fair market value of any cash value of the policy when you donate an existing policy. There are no further tax deductions in your estate (on your last tax return done by your executor after your death).

2. You own the life insurance policy

In this strategy, you own a life insurance policy on your life, while the charity receives the full proceeds of the policy upon your death.

You own the policy.
You have access to any cash value of the policy, if necessary.
The charity is the beneficiary though you can change it.
Other claimants, such as a creditor, may challenge the right to the proceeds.
Tax benefits to the estate (your final tax return) may apply for some of the policy proceeds after your death. Note: Discuss with your tax advisor.

As the policy owner, you can change beneficiaries and have full access to any accrued cash value over your lifetime. The proceeds from the death benefit are not subject to probate nor estate administration fees, nor will the gift be on the public record.

When a charity is the designated beneficiary of a life insurance policy on your life, the charity receives the proceeds of the death benefit upon your death. Your tax advisor can advise you if the tax-free benefit paid to the charity, as the beneficiary, generates any disposition to your estate (as it would on an owned asset such as a gifted cottage that has accrued value over time).

The tax benefits to your estate after your death The charity will issue a charitable receipt for the entire amount paid to them in the year of your death. The entire capital created at your death, referred to as the death benefit, will account for a charitable donation on your final tax return prepared by your executor.

Note: Your tax advisor can assess any tax due in the estate for cash values accrued according to changing tax law.

Life insurance can be part of an ongoing charitable gift plan or offer your estate a significant tax break when the death benefit pays out to the charity.

David Toycen sums up the importance of our gifts to charity: If I am generous to someone, that person will likely be generous to someone else. There is an argument to be made that the universe was created to operate this way. ²

Ask your life insurance or tax advisor to guide you in strategically setting up a charitable life insurance policy to enable the best possible tax savings.

^{1, 2 The Power of Generosity, Dave Toycen. Pres. World Vision, Canada, (Harper Collins Publishers, 2004)}

Financial strategies must be organized categorically

It is critical to take responsibility and save for retirement

In the information age we are inundated with data, to such a degree, we can get distracted from our principal wealth creation goals. Neuroscientist, Dr. Daniel J. Levitin points out in his book, The Organized Mind, with regard to a never-ending stream of social media, news, and career info, that “our brains are hungrily soaking all this in because that is what they’re designed to do, but at the same time, all this stuff is competing for neuro attentional resources with the things we need to know to live our lives”. And one of the key things we need to know is how to get our finances on track for retirement!

Why people fail to plan A recent article in CNN noted after surveying 1,000 people about retirement that “many people spend more time researching which car to buy or where to go on vacation than they spend on their investments — more than half said they had spent five hours or more doing research the last time they bought a car, and 39% said they spent more than five hours exploring vacation possibilities. Meanwhile, a mere 11% said they had spent that amount of time evaluating investment options”. Levitin makes a case for the need for categorical thinking if we are to wade through the information best suited for our lifestyle. Applying his wisdom, the secret is to determine how you break down your financial strategies categorically speaking, and then determine how you prioritize your processes in relation to your goals. By asking how you organize your finances it forces you to look at and list the most pertinent categories with a realistic application for financial survival:

Organize categories as retirement priorities.

There are many factors to consider in the cycle of ongoing, systematic strategic financial organization as you can see in the diagram above. However it is vitally important to apply your powers of concentration to organize strategy in the following key categories, areas within which financial advisors are trained to assist you:

Net worth Add up all your assets and subtract your liabilities to get your financial net worth.
Retirement income resources Within your assets of your net worth, determine the specific amount earmarked as saved for retirement from which to draw an income for a lifetime. Bear in mind that some of your assets will be fixed (not liquid for cash) such as your residence.
Weigh debt interest against investment interest Debt accumulation must be mastered as it will drain any good retirement plan.
Expiration potential of income resources Based on how long you might live – your life expectancy – calculate just how much cash the funds can deliver for your lifetime per month. Then based on how much you determine you will realistically need to cover expenses per month, calculate when the money would run out or if you have enough saved to last a lifetime. Add in pension income sources. Income resource planning needs to accommodate reasonably achievable long term goals while considering your risk tolerance.
Investment action plan You must have a systematic method of investing in order to beat the ravages of time and inflation.
Invest with a mind to save tax Utilize all the tax planning strategies available with the government’s registered accounts.
Invest for wealth creation If you have five or more years left you must invest if you haven’t reached your necessary accumulation from which to draw an income. Seek investment advice from a professional advisor.
Invest for wealth preservation Once you have accumulated your nest egg, develop strategies to protect against losing capital, yet remain invested in suitable vehicles for your age. The following graph will denote how much money is necessary for a prolonged period of time in retirement.
Get good investment counsel Here is the need to use a financial advisor who daily works in the realm of financial calculations while looking at your future income needs. An advisor will review your plans and investment performance periodically to help keep you on track.

Successful people delegate, so can you

Dr. Levitin points out that “successful people – or people who can afford it – employ layers of people whose job it is to narrow the attentional filter. That is, corporate heads, political leaders, spoiled movie stars, and others whose time and attention are especially valuable have a staff of people around them who are effectively extensions of their own brains, replicating the functions of the prefrontal cortex’s attentional filter”.

In the same way, in order to be successful at retirement planning you may need to engage the help of a professional advisor, someone who often does not charge for his or her services (some advisors are paid via other means), as well as fund specialists and/or investment managers trained to help you achieve financial success.

An advisor can help organize and govern your finances

Again, the logic of The Organized Mind, when applied to finance is simply to get financial guidance – applying the resources of fiscal counsel available. Levitin summarizes this concept of getting someone to handle the daily distractions of life – and unfortunately many view financial organization as a distraction lumped in with all the other media distractions, when it comes down to getting through a basic day, month, or year! Little wonder most people procrastinate when it comes to their finances.

These highly successful persons–let’s call them HSP–have many of the daily distractions of life handled for them, allowing them to devote all of their attention to whatever is immediately before them. Daniel J. Levitan Ph. D. – The Organized Mind -published by Allen Lane

We all want to be successful in our career and workplace as well as in our investment planning. Why not talk to your financial advisor about implementing an organized financial plan – bearing some of the burden to help you get on track – after you study the graph below depicting the capital needed on which to retire. And ask yourself, “is it time that I get help?”

Graph Source: Adviceon

Perspective on how we perceive time to invest

In his book, the neuroscientist Dr Daniel J. Levitan indicates why our time remaining to invest may pass by faster as we age than when we were younger. He explains “that our perception of time is…based on the amount of time we’ve already lived.” The Organized Mind, (Penguin Canada Books, Toronto, 2014)

Time from a financial perspective

Dr Levitan’s observation may apply mainly to the anxiety people experience as they age. As the time to retirement shortens, some may begin to fear that they might not have saved enough for retirement. Procrastination takes its toll on compounding investment gain potential. When looking at an average retirement age of 65, the two tables in this article reveal the profound truth about the dwindling of time and the shrinking opportunity time remaining to invest as we age year by year.

Graph Source: Adviceon©

Time offers the opportunity to create wealth.

We must sincerely acknowledge the fantastic opportunity investment time provides the investor. Most people have had lots of time within which to invest. At age 35, we cross over the halfway mark of the time remaining to invest our hard-earned income to the age of 65; at age 45, approximately only one-third of our time is left! Please look at the shrinking opportunity of time in the second table, which shows how the availability to have compound gains working for you drastically decreases as time passes.

Some parents begin wisely investing for their children right after birth and get time to work on their side early.

Graph Source: Adviceon©

Why does investment opportunity time get lost?

Greed and fear work against investing. Many people get caught up in timing the market when influenced by either of the two emotions, greed or fear. Here’s why this never works. First, desire compels people to buy when the stock market (and potentially a fund unit value) is higher. Conversely, fear causes many to sell when the stock market’s value (and possibly a fund’s unit value) is lower.

When you can’t seem to begin investing, make regular investments in promising companies to benefit from a method referred to as dollar-cost averaging (DCA) to level out the peaks and valleys of the market by purchasing at regular intervals. If the value of shares in a fund decreases, you buy more units. Conversely, if they go up, you buy less. Time spent invested in the market, not timing the markets, counts.

Don’t just look at an investment fund’s most recent performance. Instead, look for long-term investment performance over one, three, five and ten-year periods. Moreover, make investment decisions with the help of a professional advisor who has access to investment managers.

Sure-Fire ways to invest for a rewarding life

Here are several tips to contemplate before investing in a mutual fund:

1. Eliminate the unreasonable desire for get-rich-quick profits. No one gets rich overnight after purchasing mutual funds. However, many people may get rich investing in them over the long term (at least 5-10 years). Equity funds (those holding stocks) are affected by the stock market when the market is gaining and when it is depreciating.

2. Identify your investment goals. Will you be saving for your child’s education over 15 years, or investing for retirement over 5, 10 or 20 years? Don’t buy a fund just because it has skyrocketed in value during any one period. Instead, choose the fund most suitable for your investment purpose. For example, keep short-term investments liquid if you put money away for an emergency (it is advised to save three months of income for costly emergencies). You can use a money market fund for this saving, not an equity fund. Consider using equity funds for a more extended investment period of 5-10 years.

3. Invest in several types of funds. Don’t put all your money in one fund basket. A well-rounded fund portfolio utilizes several investment types of securities: equity, balanced, bond, and money market funds, for example.

4. Maximize your tax savings. Register a mutual fund investment (to create an RRSP) if you do not yet own an RRSP. Contributions are tax-deductible in relation to your taxable income, and the investments grow tax-deferred.

5. Position your fund investments. The best place for retirement investments that accrue interest or generate high returns is inside your RRSP because the income on these investments won’t be taxed year by year. Thus, you will gain the advantage of the total yield without the tax on interest-as-income. If you earn 5% and pay 40% in tax, you’ll only get 3.0% in a non-sheltered, non-registered investment (in the RRSP, you’ll get the full 5%). Consider placing mutual funds that accrue capital gains and pay dividends over fewer taxable distributions in a non-registered vehicle or a Tax-Free Savings Account (TFSA).

6. Invest in yourself first. The advantage of owning mutual funds is that you can establish a plan where the money is automatically taken out of your bank every week or month and invested (by purchasing fund units). You probably won’t miss this portion of your pay; try to invest 10-20% of your paycheck using this method.

7. Take investing seriously. Investing is that act of life whereby you put away today what you will need tomorrow.

Can life insurance collateralize business bank debt?

How banks view lending money to business owners.

Banks follow established rules, which include asking a business owner to collateralize a loan, not just with business assets but also with personally owned assets, such as a principal residence and cottage. Collateralization can require collateralising a spouse’s co-owned assets, even if the business is incorporated.

Add to that a possible collateralization of any assets of a partner or adult child (and their spouses) who also share in ownership. Small business owners can lose their shirts if they default on a loan.

What if an owner dies? It is unwise to assume that a good relationship with the bank will continue if the heir of a small business or a partner is not in favour with the bank manager. Bank managers can change or apply strict policies while reassessing the leniency shown to previous owners or administrators.

Eliminate doubt in a family business, such as a farm, by insuring the oldest owners and succeeding generations using joint-first-to-die policies or individual life insurance policies. In the case of a non-family business, each owner/partner should be insured to cover the company’s debt. When the life insured dies, the tax-free life insurance proceeds can be used to pay back loans, win back ownership, and discharge any personal assets liens.

What if there is a critical illness? For the same reason, small business owners should consider purchasing a critical illness (CI) insurance policy for each principal business owner and key persons. CI insurance could pay off a considerable bank debt if one were to experience a significant illness such as a heart attack or stroke. One could become incapacitated and need to be bought out by a partner or an heir (there should be a buy-sell agreement in place). The risk of a loan being called increases when an owner-manager is sick, and the bank manager loses confidence in the debt-paying influence of that owner.

How can I reduce Probate or Estate Administration fees?

After the death of an individual, every estate must file a final (or ‘terminal’) tax return. All assets are deemed to disposed of at the time of passing, and this can trigger probate fees and other expenses.

A certificate of appointment (“Probate”) or Estate Administration Tax (EAT) is not always necessary to actualize the transfer of certain assets. Much depends on how the asset is held during one’s lifetime, and the value of the asset transferred. Some institutions will not require probate for assets under a certain amount. Concerning jointly-owned real property, and bank or investment accounts, these assets will pass to the surviving joint tenant by right of survivorship. In cases where joint ownership of assets is considered for estate planning purposes, it would be prudent to obtain legal advice.

Life Insurers offer life insurance policies, segregated funds, and term funds, which may designate one or more primary beneficiaries, and further contingent (secondary) beneficiaries, allowing probate/EAT to be circumvented entirely, enabling direct access to those funds without joint ownership or survivorship of a joint tenant. Segregated funds and term funds are classified as deferred annuity policies, and as such, these assets can help lessen the overall fees charged on your estate. Monies pass privately and directly to your beneficiaries, outside of your estate and the probate process.

Concerns for Estate Planning

In Ontario, Probate fees were the forerunner of the new Estate Administration Tax (EAT), which is to shift to the Minister of Revenue. An Executor/Trustee will now have to file a detailed summary of assets that are distributable under the will. The Ministry reserves the right to take up to 4 years to assess, or the right to reassess, making the Executor/Trustees responsible for that reassessment. Executors and beneficiaries may face liabilities if estate assets distribute before assessment or reassessment. How does an Executor reclaim assets already distributed?

Assessment powers are not minor With the introduction of the estate administration tax (EAT), the government has given the Minister of Revenue audit and verification powers patterned after the federal Income Tax Act, thus giving the Minister of Revenue the right to assess an estate in respect of its EAT liability.

Estate trustees may be personally liable for the claims of creditors that cannot be paid as a result of an improper estate distribution. It will be an offence for an estate trustee to fail to make the required filing with the Minister of Revenue or where anyone makes, or assists in making, a false or misleading or omitted fact in connection with the estate trustee’s filing. Because offences are punishable by fine, imprisonment or by both, errors and omission insurance may be needed by executors handling larger estates.

Potential Legal Issues for Estate Trustees and Executors
Imagine if you are a personally chosen friend of a deceased person with $1.5 million in assets, who previously selected you as Executor/Trustee of his or her estate. Though duty-bound, you may feel that the risk is now very high if an error occurs. Consequently, you may want to off-load the potential liability to a professional accountant and lawyer to present all the documentation for EAT.

Consider that the costs of such a transfer of liability could rise to the maximum of 6% per professional (two professionals would mean 2 x 6%) of the value of the Estate. This could bring the total cost of dealing with EAT to a maximum of 13.5% of the estate value. In the above case, fees could cost upwards of $202,500.

Segregated and Term funds may offer investors an edge over other investment products in the province of Ontario when it comes to planning someone’s Estate. Segregated and Term funds also offer estate privacy of the distribution of money under the insurance act.

Note: Not applicable in Québec as notarial wills do not need to be probated by the court and, for holograph wills and wills made in the presence of witnesses, probate fees are minimal.

How can mutual funds help manage financial risk?

How can mutual funds help manage financial risk?

In business and investment, more significant gains are associated with both business success and variable risk. Six risk factors are examined below, along with constructive ways to deal with them.

Risk increases with the potential for gaining wealth in the markets

There is no such thing as gaining wealth without risk. Risk generally increases within any business or investment when the potential for gain is greater. Mutual funds diversly invest in the stocks of many companies. If a business succeeds, its stock price (and dividends) can increase in value and pass that worth on to the fund unitholders.

If many companies’ stocks increase in value in a mutual fund, the investor’s wealth can increase relative to the resulting total net increase in all of the fund unit’s value. In the short term, a mutual fund, like any business, can fluctuate in value, so the risk of losing money in the stock market increases if equity fund investments are held for only a short period.

Defining Investment Risk

The potential for gain generally increases the longer you hold equity fund investments. Because economic performance is uncertain, an investor who seeks growth by investing in the ownership of companies via equity mutual funds cannot have zero risk. Most successful investors realize that the following risks exist yet invest despite these:

• Interest rate risk when increasing could negate gains of certain income funds investing in bonds.
Solution: Maintain a balanced portfolio including equity funds and different types of income funds: money market, short-term bond, and long-term bond funds.

• Business failure risk could deplete the value of any one company’s stock.
Solution: Consider investing in equity mutual funds because they hold many different stocks.

• Purchasing power risk is an alarming reality faced by everyone due to inflation’s historical average, which has been between 3% and 4%.
Solution: Calculate inflation into your retirement planning and consider investing in equity mutual funds over the long term, with the potential to build sufficient wealth to meet increased future budget demands due to inflation.

• Market risk occurs because markets are cyclic, rising, correcting, and occasionally declining.
Solution: Diversify your funds, investing in a family of domestic mutual funds and internationally among foreign mutual funds as not all markets move together.

• Opportunity risk occurs when you cannot invest your money for a potentially better return, such as when you are invested in a locked-in type of investment, such as term deposits, or have tied up your income in monthly payments.

Solution: Try not to lock up all of your money, keeping some in money market funds over any given period.

• Liquidity risk occurs when you cannot quickly sell a given investment, such as an extensive real estate portfolio.
Solution: Invest in mutual funds. If money is urgently needed, funds can be sold and money accessed on any business day with possible costs.

How do I care for my aging parents?

Here are some tips to help you lighten the load of Elder-Care:

• Plan your caregiving carefully. Don’t be ashamed to ask for and get help from your siblings or others when caring for a family elder—let others share the load—tell them how they can help, and let them know you expect it! They can clean, cook, take them to the doctor, shopping, or church, and take them to their home for a little break/holiday, etc.
• Be honest about what you can truly handle. Be honest about your time when you are home and what you can realistically achieve. Don’t let your housework stay undone due to your over-commitment to the elder. That isn’t fair to you or your family.
• Assess government and public resources. Find out what services are free or available as paid-for services—learn what your community offers in senior care.
• Prioritize your to-dos. In this way, you’ll know what needs immediate attention, such as their physical comfort and safety. Determine if any problems, such as a lack of heat or air-conditioning, water leaks, or mould accumulation in the elder’s environment, needs attention. Delegate help to family members or friends concerning their skill set, career, or financial ability to help.
• Assign care tasks to the elder that they can do. List the jobs to define what they can and can’t do. Involve the elder as far as possible in the plan, if they can cook their meals and bathe themselves, and let them know this is henceforth expected of them.
• Outsource where needed. Discuss who you might hire with the elder, and where applicable, expect their input in the decision. Maybe you must bring in a house-cleaner weekly and hire a handyperson.
• Let the elder assist you financially. You may be putting them up in a space in your home, and they might use your resources, so it is not out of line to ask them to help pay your bills (perhaps via rent). The elder is now retired, so they ought to reach into their investment income (if they have wisely invested or have gained other assets) or pension income to share in the expenses and perhaps buy and prepare their food.
• Decide to make informed decisions. Don’t procrastinate to make the necessary changes and improvements because years of frustration may accrue as “things unattended only to get worse”.
• Meet with a lawyer and financial advisor. If the relative increasingly depends on you to help in their estate planning, employ a good lawyer they can trust; write an up-to-date living and testamentary will.
• Review to determine if there may be life insurance needs for the funeral and burial expenses ahead of time. If there is, consider buying a policy and have siblings or heirs split the premium.
• Assess any tax and debt liabilities. Assess retirement savings, investment holdings, other assets and all liabilities to create a mini net worth snapshot to determine the potential net need for life insurance. Then select the amount necessary. Check if any cash values can make current cash income while maintaining an old policy the elder may own. Determine who will be the Power of Attorney (PA).
• Become an advocate. Don’t be afraid to take the elder’s side. Many are not used to today’s current culture and need kind understanding. So speak up for their rights and causes; never bully them or ignore their cries for help or justice as they face our healthcare system, unfair medicinal prescription fees, or rude gestures from others. Dialogue with physicians (and get second opinions) when necessary for their well-being.
• Maintain a happy attitude. If you keep your good humour and remain positive, you’ll lessen the stress factor. Caring for elders can tip your emotional scales, so laugh a little, even at yourself!
• Review and respect their historic life’s excellent and fun aspects with you. One day your elder won’t be around to show your appreciation and love for their positive role in your life. Tell respectful stories about their hero or heroine qualities. They probably did rescue you by overseeing your younger days while feeding and clothing you. Don’t put them down for failures—forgive them. They may have “been there” for you, so recall the best days of their life to realise they were needed, appreciated, and loved for who they are.
• Maybe write a book on their story. Why not review their life story in a journalised small book of their history—to leave a legacy to your family to show appreciation and take your mind off the stressful negatives? It may reveal redemptive qualities; to teach your younger generation by example—to impress the younger generation by the elder’s influence, such as perhaps: their character developed by war, or persistence during poverty, or a corrective life-change, their hard work that led to business success, or a healed relationship via forgiveness, or their involvement in charitable giving, or their volunteer work to help others, etc.
• Stay ahead of burnout. Get some rest and exercise weekly to protect your mental and physical health. Fulfil all your responsibilities, and maintain all your meaningful relationships. Be sure to get the R&R you need to stay graceful, strong and vigorous as your elder ages and becomes more dependent on you.
• Find unanimity in an elder-care support group. They can share their ideas and help you make decisions, help you not to feel alone, and help you face stresses and problems as they relate their wisdom obtained by experience. Getting ideas and compassion from other caregivers caring about you doesn’t hurt.

Caring for an older adult is not a job that comes with training or gets a lot of thanks—it is something you take on, usually out of love. It can be an unappreciated Herculean effort—but at least you’ll know you did your best at the end of the day. Your love is what counts.

Every so often, you can take a self-inventory and restate your primary purpose in caring for an elder. This will help you overcome the temptation to complain, throw in the towel, or send the elder to a rest home too early.

You may want to consider Longterm Care Insurance for yourself or your loved ones, which helps pay for services the family members may not be able to provide. Talk to your advisor about the life insurance policies available for these services.