Cook Wealth Management Group

Tax Strategies for the “Sandwich Generation”

sandwich generationAmericans are now living longer and starting families later. As a result, raising a child and caring for an elderly parent at the same time is increasingly common. According to a Pew Research Center report, 1 of every 8 Americans age 40 to 60 is doing just that, juggling their time and stretching their money between their kids’ and their parents’ needs.* And, statistics from the US Census Bureau show an anticipated increase, indicating that the number of Americans age 65 and over will double by the year 2030, to over 70 million.**

When taking care of your parent coincides with raising your child, your free time can quickly dwindle. Kids’ extra-curricular activities – sports, girl scouts, PTA, and more – can be quite demanding. So can working full time to support your family. And, mom or dad may need your help too, financially or otherwise. Welcome to the “Sandwich Generation” – you’re squeezed between your kids and your parents, and you’re spread quite thin.

Need some guidance? We can help you prepare for the future and help you decide what’s best for the present.

For example, The American Institute of Certified Public Accountants’ A Guide to Financial Decisions, Implementing an End of Life Plan is a great reference, with its helpful information on taking care of aging parents. This guide discusses many money-saving topics related to caring for ill family members, like the benefits of establishing a living trust for your elderly parent. A living trust allows the owner to maintain control over their assets while alive, but, upon death, the trust becomes irrevocable and the probate process is generally avoided, allowing the assets to go directly to the intended recipients.

Other key topics we can help with include:

  • Debt and credit management
  • Possible income options beyond selling a home
  • Essential medical directives which outline desired treatments
  • Proper documentation of wishes / updating wills
  • Tax implications
  • Legal documents to have available to family members upon illness or death
  • Timeline and task checklist for survivors
  • Government programs
  • Preservation of current quality of living

As you care for your parents, your children, and yourself at the same time, remember that we are here to help. Please contact us, your Tax Planning professionals, if we can be of assistance. Allow us to take care of the tax situations that you may not have the time to address.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.
*“The Sandwich Generation: Juggling Family Responsibilities.”
**“Are You Caught in the ‘Sandwich Generation’?”