22 July 2010

The Real Death Tax

It has always struck me as almost quaint that some conservatives get so worked up over what they call "the death tax". It will effect remarkably few of us (as in virtually none, unless academia pays a hell of a lot more than I have noticed, or books with Viking ships on the cover become best sellers). Here, on the other hand, is the real death tax that each and every person who reads this post has a good chance of paying. It's a real example from a reader asking Michelle Singleterry for advice at the Washington Post:
My mother has been at a wonderful nonprofit continuing care facility for almost 13 years. She is now 94 years old and although she had a mild stroke 10 years ago, she is in pretty good health and has all her marbles. First she lived in an independent apartment but two years ago, after a series of falls, we moved her into assisted living. She is now at Care Level 2 at a cost of roughly $84,000 per year. Here's the problem: she is running out of money. She will never hit zero because she has my father's pension and Social Security, totaling about $50,000/year. We have sold off most of her stocks (she was a very good investor when she was younger) to pay her bills and she has an annuity of about $240,000 she has held for many years. We will start tapping that but if she is raised to Care Level 3 or moves to the nursing home on the campus, that will be gone in as little as two or three years. The nursing home charges $12,000/month.

Meanwhile, the plan to starve the evil government goes forward. Hope you are feeling healthy as you age.

Labels: , ,


Post a Comment

<< Home