Gary, your comment on the disparity in taxes is true for Prop 13 as well and is frequently raised as a deficiency in the program. But there's no free lunch and you can't have it both ways. Do you want people on fixed incomes to be taxed out of their homes whenever a real estate bubble causes home values to soar? Those who buy a new home know precisely what their tax burden will be when they purchase, and what it will be going forward. That's a tremendous benefit for those wanting financial stability in their lives. The same cannot be said for allowing property taxes to swing in the winds of changing property values. Prop 13 continues to be wildly popular with Californians. Sierra, you're right in pointing out that the state government has aggressively pursued finding other sources of taxes. But imagine if property taxes had not been curtailed by Prop 13 during the recent bubble. The state would have enacted even more new programs that they'd then be unwilling to shut down when property tax revenues declined and we'd have been in an even bigger mess (hard to imagine...but true). What the state needs is an ability to constrain the pace of spending to something close to the growth in (legal) population...but regrettably it ain't gonna happen.

It's a really, really long story. And not really over yet. Thanks to the hard work of our forensic accountant, we had positive proof that SIL, her husband and another brother had taken money that they shouldn't have, and used it for their own benefit rather than MIL's. The prosecutor's office was involved at one point and wanted to prosecute SIL. Now, she definitely committed a criminal act, and part of me would have been more than happy to see her end up paying for that--but there was another part of me.... Our fathers were best friends as kids. I grew up knowing this family, thinking of them almost as cousins, and ended up marrying the BEST one of them. SIL has been my 'sister' since she was in 8th grade. Our daughters used to refer to themselves as "best cousins, best friends". How do you sit back and send someone you've been friends with for over 3 decades to jail? I took a stand and asked that the prosecutor drop the case. I know--there was good reason to go ahead, but I just couldn't do it. Now, obviously, someone who would steal like that, doesn't have enough to their name to return what they took, right? They spent every penny, near as I can tell. Well, the lawyers got together and came up with a decent solution. The 'outlaws' had been 'caring' for MIL--and getting paid to do so (there's a formula for that by law). So they had to agree to continue to care for MIL, without pay--for YEARS. Also, because they'd already claimed their inheritance, so to speak, if MIL dies leaving anything, they get almost nothing, with the lion's share of the estate going to my husband and his one brother that wasn't involved in the thefts. Now, fact is, they've had to 'repay' only a pittance of what they took. And there's every chance that what little is left in MIL's name will be used for her care--which is as it should be. Still, the thieves have pretty much had to admit what they did, and they know that we have proof in black and white. They've become very quiet. There's another thing we feel good about. My FIL died under very odd circumstances. I'm not saying they did anything to cause that--but there are questions, not the least of which involves the fact that they had him quickly cremated (this was a man who was adamant about NOT wanting to be cremated). Anyway, in the beginning of this journey, they were not getting MIL the medical care she deserved, and I feared that they were trying to make sure she wouldn't last too long. As things stand now, after the agreement our lawyer forged--and not to get into all the details of the situation--they're better off keeping her alive as long as possible. I truly believe that not only did we conserve some of her money, but we probably extended her life by fighting as we did. As I've mentioned--this has been a long involved situation. There are so many details I don't feel free to offer here. I don't feel we've won completely, but I do know that my MIL is better off than she'd have been if we'd done nothing. Unfortunately, we had no idea what was happening until it had reached a crisis situation--and really--who ever suspects those they love of stealing from their own mother? It hasn't been easy, and we've felt very alone at points--because no one wanted to help us, and the thieves went around telling horrendous lies about us to discredit us. What they couldn't do, though was erase the paper trail of stupidity they'd left behind, so in the end, there was no way for them to deny what they'd done. I would say this--if you even suspect in your family, that someone might be taking what doesn't belong to them? Get a good lawyer, and demand an accounting. If everything's fine--great. But don't wait. As soon as you intuit something's wrong, get on it. It's best to stop this sort of hemmoraging as quickly as possible. Unscrupulous people can do a lot of damage very quickly, unfortunately.

Texanjana, I’m a caretaker advocate as well and can empathize with your frustrations. Caring for someone with a chronic illness is time consuming and emotionally draining and that’s on top of the emotions that naturally come when someone who you love has an ongoing health issue. It’s just not easy. My concern with an outside party would be that you wouldn’t be in the loop as much as you might need to be. One thing I’ve learned along our journey, and I’m sorry if this sounds arrogant because it’s not meant to but I don’t trust that someone unrelated is going to manage my husband’s care with the tenacity and attention to detail that I do. I can’t put a number on the times I’ve caught something that wasn’t right or suggested something that really should have been an included part of the care; and would have been missed otherwise. And when it comes to the billing portion, it’s a nightmare. I run into issues all the time. When I got to the point that I needed some relief, I started bringing my DH into the loop more and showing him how to navigate through it all. He’s from a different country and had never had to deal with anything like this before, so it was a slow process, but with a pretty rewarding result for both of us. Is there anyway that your son can become more involved?

Wouldn't it be a useful option to ask one's tax preparer, who has a good view of one's financial situation, for some suggestions? No. The problem is that you are trying to get your tax preparer (a pretty general term) to do the job of a financial planner. It is just about the same logic as asking the plumber to wire your house, I mean he is working inside the walls so why not run some electric when he is in there. Interest income doesn't necessarily equal dividend income. You are using two things interchangeably that are not necessarily interchangeable. Different investments have completely different risk profiles and returns. I am not at all familiar with Canadian tax law, but I would be very hesitant telling someone to invest in the Canadian exchange for a tax advantage. Over the last ten years, the US S&P Index has grown 4.5 times faster than the SP/TSX (Canadian S&P index), meanwhile the SP/TSX typically has a higher dividend yield. I am not trying to give investing advice or anything of the sort, but I am trying to caution against letting the tail wag the dog. I believe this was Elmer's original point, don't get so wrapped up in tax avoidance that you actually perfect income or wealth avoidance. If you want tax planning then find someone who is qualified/certified to do tax planning, and if you want your house rewired call an electrician, even if your plumber has a great picture of the inside of your walls.