If you have an elderly relative who is about to enter a nursing home or assisted living, chances are you are already working with a counselor who is helping you deal with their financial assets. Today’s post is not meant to serve as a substitute for the expert advice you can get from those counselors, who know the ins and outs of Medicare and other factors that can impact on financial planning for elders.
However, jewelry is a specialized issue. If the counselors who are assisting you are not well versed in the topic, here are some questions to discuss with them. Please remember that these issues should also be discussed with your attorney or estate planner, not only with representatives from assisted living facilities.
Can jewelry be given to grandchildren and other family members at this time?
Would this be a good time to give jewelry to younger members of your family? Another possibility is to set up trusts for grandchildren or other future heirs. Again, this is a topic to discuss with a qualified attorney or financial consultant.
Can you just skirt the issue and hope that the jewelry will escape notice?
Many people ask this question when older relatives are heading to assisted living. It might be something to discuss with your attorney or estate planner; however, in most situations, it is a risky strategy to apply. If you are only giving a few items of jewelry that have “sentimental” rather than great value, it might be something to consider. However, it is almost always a bad idea to ignore valuable items that will have to be mentioned later when taxes are filed, estate documents are submitted, etc. Again, talk things over with an expert.
Would this be a good time to sell the jewelry?
In some cases, it might be. One case might be if you need cash to help cover the expenses of a nursing home. But again, speak with your attorney or estate planner. If you are thinking of selling jewelry that has significant value, will you have to pay capital gains tax on it? That is a critical question to ask before you sell valuable assets.
Would this be a good time to recycle gold, silver, platinum and other jewelry?
It might be. We would encourage you to call Specialty Metals Smelters and Refiners at 800-426-2344 to speak with one of our precious metals consultants. There is no obligation of any kind, and our knowledge on the topic could serve you well at a critical time.
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