Question: My wife and I signed living trusts in 1999 that contained what are called “A-B” trusts in order to avoid estate taxes. Since that time, our assets have decreased due to the stock market decline. We are in our mid-70’s and have tried to keep up, but have been told by some planners that our trusts are fine, while others have told us we should consider getting rid of the trusts. Our total assets now are less than $1 million.

Answer: In 1999, estates in excess of $650,000 were subject to estate taxes. Today, based on a 2001 law, the amount exempt from estate taxes has risen to $1.5 million, and in January 2006, the figure will be $2 million. Therefore, based on your current assets, you don’t have estate tax implications when the second of you dies.

That said, we believe that it is a good idea to have a lawyer review older trusts, which generally require that an amount up to the full unified credit at the first death be placed into a “by-pass” trust to attempt to decrease or avoid estate taxes at the second death.

Because of the increased amount you can keep before estate taxes kick in, the language of your trust may take away from the surviving spouse full control of a substantial part of the family assets. For example, depending on the language, (1) The surviving spouse may only receive income from the trust unless there is a showing of special needs or circumstances that justify distribution of trust corpus; (2) If title to the home is allocated between more than one trust, part of the capital gains exclusion at sale may be lost; (3) the surviving spouse could lose the ability to refinance the residence or take out a reverse mortgage if he or she needs cash; and (4) the survivor of you and your wife could well be prevented from gifting the residence.

For these and many other reasons, we recommend that wills and trusts signed before 2001 be reviewed by competent professionals in order to avoid unforeseen surprises, especially if the trust was a product of a “trust mill” or other “form factory.”

Question: My father was all set to enter an assisted living home in pretty good shape, as all he really needed was three squares a day and assistance with his medications. I was surprised when, as part of the admission procedure, he and I were asked to sign a “do not resuscitate” order. I thought these were reserved only for people who were considered to be “short timers,” which my Dad is not. We refused to sign, and the administrator told me to take Dad home because they could not admit him unless we signed it. I have not been able to find anyone around here who can tell me what to do.

Answer: We find it very unusual for an assisted living facility – or any facility, for that matter -- to require a “DNR” from a relatively healthy individual as a condition of admission. Generally, a DNR is a direction not to start CPR (cardiopulmonary resuscitation) if your Dad’s heart stopped or he stopped breathing. While very ill individuals – metastasized cancer, kidney failure, congestive heart failure, and severe infection -- may not want resuscitation, a person as healthy as your father seems to be an unlikely signer. We suggest that you report your problem to your state facility licensing board, because something is wrong here.

Summertime: With summer upon us, too many seniors fail to take precautions to deal with heat and sun that can cause serious health conditions, and even death. As our bodies age, we are less able to adapt to high temperatures. This means that without taking proper safety measures, we may become dehydrated or suffer from other heat-related conditions -- such as heat fatigue, heat exhaustion, and heat stroke, any of which can cause long-term health problems, and even death.

According to a press release from HomeInstead (www.homeinstead.com), family members should check in on elderly parents and relatives, not just by phone but by stopping by their home to check out their physical appearance and well-being. HomeInstead suggests that when you go by, you should check on food and beverage supplies, medications, and the temperature in the home that should keep the seniors comfortable.

Taking the NextStep: HomeInstead has announced a new Website to help family caregivers gauge their stress levels through a new, online stress assessment tool. To try out this innovative tool without charge, go to www.caregiverstress.com.