• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Today's Transitions

  • Home
  • Home
  • Find Help
    • Search Care Communities
    • Caregiver Solutions
    • Health Treatments
    • Search Home Caregiving
    • All Caregiving
  • Beautiful Living
    • Travel and Daytrips
    • Health and Fitness
    • Delicious Food
    • Happenings Guide
    • Home and Books
    • Technology
    • Meaningful Work
      • Volunteering
    • Money and Finances
    • Positive Mental Thinking
    • People
  • Living Options
    • Search for Living Communities
    • Home Improvements
    • Low Maintenance Living
    • Downsizing
  • The Magazine
    • Read New Issue
    • Find Magazine
  • Connect
    • Subscribe to Newsletter
    • Manage Listing (Provider/Advertiser)
    • Advertising Options
    • Subscribe to Print Magazine
    • About Today’s Transitions
  • Show Search
Hide Search
Home / Money and Finances / Avoid Three Common Financial Mistakes

Avoid Three Common Financial Mistakes

October 12, 2022 · Leave a Comment

Sometimes we take steps to protect our assets, but they have unintended consequences. Learn how to avoid the most common financial mistakes to protect finances and what to do instead to enjoy your hard-earned savings.

1. Do Not Add a Person to Your Bank Account 

Many aging adults add an adult child’s name to their bank accounts so their child can pay their bills if ever sick or incapacitated. However, adding someone to a bank account inflates the assets available to that person with many unintended consequences. Not only does the money in your account become exposed to other liabilities, but in the event of divorce or a legal judgment, your money may go to a future ex-spouse or be used to pay your child’s debts, even against your wishes. Adding a child to a bank account also means those funds appear available to your child’s family, which could eliminate eligibility for scholarships or financial aid or other public assistance. 

Although adding a person to your bank account allows someone else access to your money if you need help, you relinquish full control of your account and make your assets equally available to your child. The better solution? Meet with an elder law attorney and execute a financial power of attorney tailored to your wishes. That way, you grant your child authority to act on your behalf without giving away full access to your account. 

2. Do Not Add a Person to Your Deed 

Similarly, some people add another person’s name to the deed for their home as a way of protecting the house from potential long-term care costs. Adding someone to your deed introduces the same risks that come with adding someone to your bank account and exposes your home as an available asset in the event of bankruptcy, divorce, or judgment. In addition, adding a child as owner of your home also creates a potentially significant tax bill for your child and adds unnecessary risk to you. 

When adding someone to your deed during your lifetime, that person inherits your basis for tax purposes — meaning whenever the person sells the home, the capital gain is measured from your initial investment. When a child inherits a parent’s property at death, however, the basis or what is considered the child’s initial investments resets to present-day value. Then any capital gain on sale measures from the date of death instead of the date you purchased the property. The result can be a difference of tens of thousands of dollars in owed taxes! 

Adding a name to your deed could also prevent you from receiving valuable benefits for long-term care when you would otherwise be eligible under Medicaid rules. The transfer of property to someone else — even if you retain an interest — incurs a penalty period based on the value of your home at the time of transfer. The better solution? Meet with an elder law attorney who knows the transfer rules in your state to ensure protection of your home without passing a hefty tax bill on to your children. 

3. Take Time to Plan for Long-Term Care Needs 

We tend to procrastinate or avoid long-term care planning due to unpleasant associations with illness and death. Yet a full 70% of all older adults will need some long-term care as they age. Even if you are healthy today, odds are that you will require long-term care at some point — and the costs of that care are staggering. 

Some long-term care insurance policies cover portions of those costs, but usually for a limited time at a limited rate and in limited circumstances. Many seniors mistakenly assume Medicare will cover residence in a nursing facility, then make a second mistake when discovering Medicare does not cover skilled nursing and unnecessarily spend all their hard-earned resources on the care they need. 

The better solution? Protect your assets and receive quality long-term care when you need it with proper planning. But you need to act while healthy to maximize protection. The time and investment in working with an elder law attorney is a fraction of the cost and emotional investment of finding and paying for care without a plan in place. 

By Michelle Tupper Butler

Michelle Tupper Butler is a practicing elder law and estate planning attorney who founded Tupper Butler Law PLLC following a medical crisis that led to her caring for her father.

P.S. Check out these 10 questions to ask your parents.

Filed Under: Caregiver Solutions, Featured, Money and Finances

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search for Care Communities

Sponsored

Resource Directory

Make Time For Fun And Sun This July

Booms In The Bluegrass This July

Something Special is Happening at Hosparus Health

Search

  • facebook
  • instagram
  • pinterest
  • x
  • linkedin
  • subscribe

ttcaregiving

“We can take a lot from Satchel Paige’s attitu “We can take a lot from Satchel Paige’s attitude: ‘Age is a question of mind over matter,’ he would say. ‘If you don’t mind, it doesn’t matter.’” Read more from Bob Mueller about the lessons we can learn from sports heroes about our view of aging.
When you or a loved one needs to navigate life in When you or a loved one needs to navigate life in a wheelchair or scooter, it can be a challenge to find places to go that are truly accessible, with adequate parking, accessible restrooms, and a navigable interior. Members of the disability advocacy organization Gathering Strength put together a list of fun outings around Louisville for people who use a wheelchair. ⁠
⁠
@gathering_strength ⁠
@iroquoisamp ⁠
@waterfrontparklou ⁠
@waterfrontgardens ⁠
@louisvillezooofficial ⁠
@bernheimforest ⁠
@uoflhealth ⁠
@gotolouisville ⁠
@speedartmuseum ⁠
@noblefunkbrewing
“There are four foundations for brain health: sl “There are four foundations for brain health: sleep; nutrition, which includes hydration; how you manage stress; and your activity level,” says Dr. Bryan Davis, clinical health psychologist at Norton Neuroscience Institute. Learn more about these foundations as well as new technology for brain and mental health at the link in our bio. {link in bio}
Create moments that matter! The Power of Moments s Create moments that matter! The Power of Moments shows how you can actively shape life’s peak experiences — through small acts of elevation, insight, pride, or connection. By intentionally breaking the routine, celebrating milestones, recognizing courage, and deepening bonds, you can turn ordinary moments into unforgettable breakthroughs.
🌞 Our Summer Issue is Here! 🌞 ⁠ ⁠ Kindne 🌞 Our Summer Issue is Here! 🌞 ⁠
⁠
Kindness isn’t just a nice-to-have — it’s as essential as food, water, and sleep. Giving it and receiving it is like breathing in and out. ⁠
⁠
This issue is packed with stories to inspire kindness in your life:⁠
✨ Meet people making a difference for kids in our community.⁠
🍪 Discover ways to share — from tasty treats to your creativity and home.⁠
🌱 Find inspiration in giving, whether it’s plants from your garden or support for your own mind.⁠
⁠
Throw someone a lifeline of kindness today—and remember to show it to yourself too. 💕⁠
⁠
Read more in the latest issue at the link in our bio.
Discover tech tools that unlock your creative side Discover tech tools that unlock your creative side—whether you're into digital art, podcasting, or simple journaling, there's something out there to help you express yourself. Start small, experiment with beginner-friendly apps, and watch your ideas come to life! 🎨🎙️⁠
⁠
{link in bio}
You just might get excited about cleaning your gut You just might get excited about cleaning your gutters with this affordable, game-changing tool. Check out our other picks to make yard work a breeze.⁠
⁠
#techtools #springcleaning #springclean #outdoor #home #hometools #homelandsape
Whether you are working, retired, or caring for so Whether you are working, retired, or caring for someone, finding an outlet for creative expression can be a great way to focus on what is important to you, connect on a deeper level with loved ones, and find a sense of peace from the chaos. Consider these tools as a source of your inspiration at the link in our bio.⁠
⁠
#tech #newtechtools #newtech #techgadgets #caregiving #caregivingtools #caregivinglife #trythis #creative #creativity
Small spaces can still bring maximum function and Small spaces can still bring maximum function and beauty: Check out how professional organizer Kentuckiana Professional Organizer arranged the kitchen of this client’s 1,200-square-foot home in Mount Washington. (You won’t believe how good a ‘junk drawer’ can look!) ⁠
⁠
{link in bio}⁠
⁠
#homeorganization #lovelyspace #interior #interiordesign #kitchen #kitchendesign #homedesign
Visiting a loved one—whether in person or virtua Visiting a loved one—whether in person or virtually—can brighten their day, especially when you come prepared with thoughtful questions and engaging activities. Learn how to make your visits more meaningful in Part 3 of the "Building Good Moments" series at the link in our bio.⁠
⁠
#caregiving #caregivingsupport #caregivinglife #caregiver #support #supportlovedones #supportfamily
Engage your senses and immerse yourself in nature Engage your senses and immerse yourself in nature this season. Here are some ideas to bring nature closer in your yard and even inside your home.⁠
{link in bio}⁠
⁠
#nature #invitenaturein #spring #springtime #springseason #immereyourself #getoutside #getoutdoors #outdoors #outside #springflowers #flowers
Her fitness routine helps her get nine solid hours Her fitness routine helps her get nine solid hours of sleep a night! At age 61, Lynn Knepshield of Baptist Health/Milestone Wellness Center is a fitness inspiration. Read more about how she got started and how she stays so active at the link in our bio.⁠
⁠
#fitness #fitnessinsp #stayfit #moveyourbody #walk #dailywalk #walking #exercise #baptisthealth #louisville #louisvilleky #ky #kentucky
Here’s why it’s worth it to plan a trip with m Here’s why it’s worth it to plan a trip with multiple generations of family – and how to manage the planning and costs. {link in bio}⁠
⁠
#travel #traveltips #takeatrip #multigeneration #multigenerational #memory #memories #makememories
For many of us, decluttering can be an emotional e For many of us, decluttering can be an emotional experience. It’s not always easy to part with possessions we have an emotional connection to, making a real clean-out challenging.⁠
⁠
“Home is not just a place we live, but a reminder of memories, with each item telling a unique story,” says professional organizer Alison Moulder of Simplicity and Style. “The difficulty comes in gently guiding clients through the process of letting go while respecting their emotional needs.” ⁠
⁠
Learn more at the link in our bio for professional tips on making a spring decluttering effort manageable.⁠
⁠
🧹: @simplicityandstylehome⁠
🧹: @the_love_of_order
The answer is... yes, no, and sometimes, maybe. Ca The answer is... yes, no, and sometimes, maybe. Caregiving expert and educator Karen Stobbe unpacks this question and covers what you need to consider at the link in our bio.⁠
⁠
#caregiver #caregiverlife #caregiversupport #caregivingexpert #caregivingquestions
In our rush for newer, quicker, better, we seem to In our rush for newer, quicker, better, we seem to be missing out on what we fundamentally crave: a calmer, gentler, sweeter and more grace-filled life. Is it easy to achieve such a life? Definitely not. Is it possible? Absolutely, positively, certainly, yes. Follow the link to read this month's article from Bishop Bob Mueller.⁠
⁠
{link in bio}
Are your blinds open right now? Or perhaps the bet Are your blinds open right now? Or perhaps the better question is: if they aren’t, do you want them to be? If the view out your window isn’t exactly inspiring, here are some ideas to spruce it up — no matter your landscape or budget. {link in bio}
Most of us know there are sometimes beautiful mome Most of us know there are sometimes beautiful moments in the midst of bad days or horrible weeks. But how can we capture them? How do we keep the bad, the boring, and the disappointments from overtaking the good? Here are two strategies that can help you find positivity and purpose in each day of caregiving. {link in bio}⁠
⁠
#caregiving #caregivinglife #caregivingsupport #beautifulmoments #moments #support #goodthings #goodthingshappen
Kangaroo burgers, wood-fired pizza, big breakfast Kangaroo burgers, wood-fired pizza, big breakfast spreads: these local eateries won’t disappoint when you need a little break from caregiving or you want to take your loved one for a delicious bite. ⁠
⁠
📍: @jackfrys_ky⁠
📍: @thecafelville⁠
📍: @proofonmain⁠
📍: @garageonmarket⁠
📍: @gamerestaurants⁠
After being a church pastor for many years, George After being a church pastor for many years, George Ross is now focusing on creating a community for those over age 55. George shows kindness daily by delivering treats, making music, sending texts (“I can cover a lot of ground with texts”), and just being available to “do for one what I wish I could do for all.” Read more about how he keeps the kindness flowing at the link in our bio.
Follow on Instagram

Recent Posts

  • Try This Unique Way Of Seeing Portions Of The Bluegrass State
  • Kindness And Creativity In Oldham County
  • Check Out These Three Accessible Places To Visit This Summer (Part 1 of 3)
  • Carrying Around Kindness
  • Remember This When Caring For A Loved One

Manage Listings · My Account · Caregiving Listing Help
Privacy Policy · Terms of Service
© 2025 · Barrett Jacoby Publishing, LLC · Built by Breakaway Analytics