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Protecting Aging Parents Assets

Old 08-26-2019, 06:14 PM
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tka
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Default Protecting Aging Parents Assets

My parents are both in their early seventies and retired with one living in Florida and one in Georgia. Their houses are both paid for at this point and each have a basic will in place. Any suggestions for the best way to protect their homes being they make up a large portion of their net worth such as a family trust? I am under the assumption there are limitations as to the amount of protection offered should they need long term assistance involving Medicare or Medicaid, but are there any other issues to be concerned with? I plan to contact a local probate attorney, but thought I may see what options have worked well for others. The plan is to try and protect as many of their assets as possible while also creating a transparent plan for distributing their assets according to their wishes when the inevitable happens. Thanks
Old 08-26-2019, 06:19 PM
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if they own something is counts against getting someone else to pay their way.
why would you want to stick the rest of us with their bills by taking everything out of their name
Old 08-26-2019, 06:27 PM
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Look into a Living Trust with an attorney. If properly set up may provide asset protection after 5 years. Assets will be distributed via the trust at death, avoiding probate.
Old 08-26-2019, 06:32 PM
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See an "Elder Lawyer" See 2 of them if possible. Get their opinions.
For my Mother in law that has Dementia, my wife did a power of attorney and had her condo gifted to my wife.
She was told that if she had to go into a home, govment would take her condo away to pay for it up to 5 years from the transfer. They would also drain her assets (all she has is savings account balance)
We are at about 2 1/2 years now. We are doing other things to legally deal with her $ but I won't go into that here.
Old 08-26-2019, 06:38 PM
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Caring for our elderly and vets...two groups I'd love to see all the wasted government handouts redirected towards.

Old 08-26-2019, 07:03 PM
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You can let your younger sister steal it all from them as they grew old like mine did.... then nothing left to protect... but ah well... its over.
Old 08-26-2019, 07:09 PM
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Originally Posted by cphilip View Post
You can let your younger sister steal it all from them as they grew old like mine did.... then nothing left to protect... but ah well... its over.
Is that your advice to him?
Old 08-26-2019, 07:10 PM
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Naw... just venting... sorry. Brought up memories.... I'll have another scotch.
Old 08-26-2019, 07:25 PM
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Originally Posted by 99yam40 View Post
if they own something is counts against getting someone else to pay their way.
why would you want to stick the rest of us with their bills by taking everything out of their name

I used to think this way and was torn.

1.) Ultimately I feel that if the law allows it (so called loopholes) then there is nothing wrong with it. If you disagree with it then I say to get the law changed.

2.) Successful people should not be penalized while poor people get it paid for by tax payers. Most successful people have paid their "fair share" already.

3.) End of life care and nursing homes know that Uncle Sugar is going to pick up the bill so they are hyper inflated already.

Just my 2 cents. I would be happy if everyone paid their share in this country equally.
Old 08-26-2019, 07:26 PM
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I also recommend posting this question at bogleheads as well. Very good financial forum to cruise.
Old 08-26-2019, 07:32 PM
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Originally Posted by 99yam40 View Post
if they own something is counts against getting someone else to pay their way.
why would you want to stick the rest of us with their bills by taking everything out of their name
It seems I mentioned I would assume there would be issues should they need assistance from Medicare or Medicaid so no one is asking you to pay for them. There are other reasons for wanting to protect assets other than looking for a free ride.
Old 08-26-2019, 07:51 PM
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Originally Posted by GWcpa View Post
Look into a Living Trust with an attorney. If properly set up may provide asset protection after 5 years. Assets will be distributed via the trust at death, avoiding probate.

Thank you for the response. It would be nice to avoid probate if possible. One of my main concerns is having a plan in place so either one of my brothers or I can help manage their assets as they age and become unable to. The house is one of the main assets and is a little different to manage than savings or a cd.
Old 08-26-2019, 08:02 PM
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Originally Posted by tka View Post
My parents are both in their early seventies and retired with one living in Florida and one in Georgia. Their houses are both paid for at this point and each have a basic will in place. Any suggestions for the best way to protect their homes being they make up a large portion of their net worth such as a family trust? I am under the assumption there are limitations as to the amount of protection offered should they need long term assistance involving Medicare or Medicaid, but are there any other issues to be concerned with? I plan to contact a local probate attorney, but thought I may see what options have worked well for others. The plan is to try and protect as many of their assets as possible while also creating a transparent plan for distributing their assets according to their wishes when the inevitable happens. Thanks
Tie in w the elder/probate attorney. Put the house in a trust. Put most of their assets in the trust w rights to live in the house.
I believe the medicaid has a 5 year look back. So get on it.
The one trust issue is the trustees can literally steal your parents assets so they must be trustworthy.
Old 08-26-2019, 08:29 PM
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To manage their assets during their lifetimes, during periods of incapacity, a power of attorney is the primary document to facilitate what you’re seeking to do. These are one of the documents usually included in a living trust package, and that’s what each of your parents should have.
Old 08-26-2019, 08:39 PM
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Consider having them deed the properties equally to the children and reserve a life estate. Medicaid law has a 5 year lookback now, consider doing it sooner than later before it is too late. Consult an elder law attorney in each state and he can prepare the new deed, etc.
I had my colleague do the same for my parents. My mom was in a nursing home but they did the life estate about 10 years before. No lien.
good luck. But don’t wait.
Old 08-26-2019, 08:44 PM
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Be careful with these inter vivos or living trusts. Medicaid can disregard them if the parents are the trustees and the trust is revocable. The test is control over the asset. Only an irrevocable trust can establish that the person has relinquished control over the asset.
life estates work and now the remaindermen who succeed in title after the life estate ends get the stepped up fair market value at time of death, same as if inherited by will.
Check into it. Those living trusts are expensive and may not work if revocable in nature.
Old 08-26-2019, 08:55 PM
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Get a LAWYER and talk about the different trusts. THIS is the way to go. GET legal advice, not boater.
I have been through this three times, Trust is better than a will and doesn't need probate in most cases.
PLEASE talk to an elder law lawyer.

Bert
Clearwater
Old 08-26-2019, 10:47 PM
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Come on!!! I am in early 70's and am perfectly able to make my own decisions. That's why I waste my time in this cesspool of a forum. No offense ;-) On second thought......
Old 08-27-2019, 12:16 AM
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Originally Posted by cphilip View Post
You can let your younger sister steal it all from them as they grew old like mine did.... then nothing left to protect... but ah well... its over.
Was she the primary care provider for your parents? We're you and other siblings actively involved or just visitors?

My and wife and I spent the last twelve year caring for her parents while the other five siblings"visited" once in a while even after repeated pleas for help. If it were up to me they would get nothing once the remaining assets are liquidated but my wife insists otherwise. F them!
Old 08-27-2019, 04:52 AM
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If parents are divorced, can they co-mingle their assets into one trust? If divorced, are there lingering feelings among their kids about who did what, that would cloud a fair and equitable estate plan? Who becomes the trustee, or should there be 3?

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