Lawrence is a hardworking dentist with a thriving practice and a happy family life. When his widowed, 80-year-old mother Nancy had a stroke, Lawrence knew he had to step in and ensure she had a solid plan for the future.

Nancy needed to move to a long-term care home and, if she recovered well enough, planned to transition at some point to an assisted-living seniors community. She had some savings and a mortgage-free home, which she planned to sell.

But in addition to her health, Nancy faced another big challenge: her younger son Steve was asking for financial help. Steve struggled with substance abuse – a problem the family rarely discussed – and seemed to work just enough to support his drug habit. Lawrence worried that Steve would pressure Nancy for money from the sale of her house.

 

How Rubach Wealth helped

With his mother’s permission, Lawrence set up a meeting with Rubach Wealth. This was how we helped:

  • We created a financial plan for Nancy based on her current needs and on how she hopes to spend her later years, contingent on how well her health improves. This plan included realistic projections of how much money she’ll need to live based on potential scenarios.

 

  • To ensure Nancy would be able to live comfortably for the rest of her life, we set up a life annuity that would provide her with guaranteed income payments for as long as she lived. The lump-sum payment for this annuity came from the sale of Nancy’s house.

 

  • We updated Nancy’s will to reflect her current health and financial circumstances. At the same time we worked with Nancy to assign powers-of-attorney to Lawrence and to a trusted friend, and to set down an advanced directive detailing her wishes should she no longer be able to speak for herself.

 

  • Nancy was worried that Steve would get upset about not getting any money from the sale of her house, and she was in no condition to have this tough conversation with him. At her request, the Rubach Wealth team sat with Lawrence and Steve to discuss their mother’s plan going forward and how each of them fits in this plan.

 

Regular reviews to ensure plans that reflect current realities

With her house sold and her financial affairs in order, Nancy has moved to a long-term care facility where she’s receiving physiotherapy and occupational therapy. As it does with all clients, Rubach Wealth will check in regularly with Nancy to ensure her financial and estate plan continue to reflect her circumstances and wishes. We have also started working on financial plans for Lawrence and his wife.

 

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