Parents protecting their assets - Legally

[lowbud]

I'm not sure where to post this so I'll start here. Feel free to move it should another area be more suitable.

I have been telling my parents for years to start looking into ways to protect what they have should either require nursing home care and they really haven't done much about it. They spoke with a estate planner one time that wouldn't talk to them becasue they didn't have the 2mil in assets they required. They stopped and put all this on the back burner after that.. Well....

My Father recently passed and now I'm getting involved in all their financial crapola. So here's the skinny.. They aren't rich. not even close. They own everything they have, home, cars, etc and don't owe anyone a dime.

I figure their assets as follows:

Home: 250k

Retirement accounts: 80k

Savings: 70k (cash)

I would guestimate everything they own to be less then 600k at currrent market value. It's not alot but it's enough for mom to live comfortable the rest of her life. This along with what she gets from social security she's pretty well set.

So my question is.. Can anything be done to now to protect what's left?

What about inheritance taxes for me after she passes. What can be done to avoid probate?

I really don't want to put anything into my name becasue then if something happens to me.. death, lawsuits, bankruptsy, etc.. heck we all know anything can happen.. and with my luck, I'm not taking any chances with mom's assets.

So what can be done to prepare... I hope mom lives a long time but at this point it's definetly time to think about the inevitable. I personally don't care if mom spends it all and there's nothing left.. I just don't want to let the government have it if were ever forced to deal with nursing home care or inheritance taxes.

Comments, Advice?

Edited June 10, 2009 by lowbud

[Guest mustangdave]

Its good that you're concerned...you need to get a "good" lawyer...seriously...and accept that the government is gonna get "some" of it...your job is to minimize that impact. We just went through this 2+ years ago with my mother in law. You've got your work cut out for you.

[saintsfanbrian]

Living trusts with your name on it are a way to protect it to some degree but I am not a lawyer or a financial adviser.

[oldogy]

I recently went through settling three estates. I am not going to offer much except that you educate yourself and your mom. I do hope your mom is receptive to doing what is best for her. For her sake don't let her be scammed by someone trying to sell her something she does not need. Believe me, they are out there and she will hear from them. Consider her health and age. I do not know that a trust is of much value with such a limited net worth. I would not think taxes would be an issue under current tax laws. 250K seems like quite a bit to have tied up in her house. Consider alternatives unless she is absolutely hung up on staying where she is. It is probably a good idea to do nothing in this area for a while. Would you ever want the house? Life estates work well in some cases. Does not sound like she needs more cash flow.

I commend you for wanting to help and wish you both the best.

oldogy

[Guest TurboniumOxide]

Dave Ramsey. Talk to him or use one of his endorsed providers.

[lowbud]

I recently went through settling three estates. I am not going to offer much except that you educate yourself and your mom. I do hope your mom is receptive to doing what is best for her. For her sake don't let her be scammed by someone trying to sell her something she does not need. Believe me, they are out there and she will hear from them. Consider her health and age. I do not know that a trust is of much value with such a limited net worth. I would not think taxes would be an issue under current tax laws. 250K seems like quite a bit to have tied up in her house. Consider alternatives unless she is absolutely hung up on staying where she is. It is probably a good idea to do nothing in this area for a while. Would you ever want the house? Life estates work well in some cases. Does not sound like she needs more cash flow.

I commend you for wanting to help and wish you both the best.

oldogy

Actually the house is my biggest concern as I do want to keep that in the family. The land the house is on has been in the family for over 100 years.

We have a appointment at the attorney's on Friday so I'll see what they say about it all.

I'm not concerned about her falling for a scam. She's pretty sharp. she's not going to let anyone pull the wool over her eyes. besides.. sonny boy is watching too now..

Edited June 10, 2009 by lowbud

[lowbud]

Its good that you're concerned...you need to get a "good" lawyer...seriously...and accept that the government is gonna get "some" of it...your job is to minimize that impact. We just went through this 2+ years ago with my mother in law. You've got your work cut out for you.

Yeah.. and finding a "good" one is like looking for pissant in a burlap sack of sugar.

[Guest clownsdd]

Dave Ramsey. Talk to him or use one of his endorsed providers.

[lowbud]

Ok.. can someone explain who this is?

[Guest HexHead]

Dave Ramsey. Talk to him or use one of his endorsed providers.

Dave's good at telling people not to do stupid stuff with credit, but this is way over his area of expertise. And his "endorsed" providers are just sales guys that are paying him for the endorsement.

[Guest HexHead]

Yeah.. and finding a "good" one is like looking for pissant in a burlap sack of sugar.

He needs to find an attorney that specializes in estate matters. Don't just go to the local ambulance chaser.

[56FordGuy]

Ok.. can someone explain who this is?

Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.

He's a financial guru with a facility in Brentwood. He has a syndicated radio show that airs in the greater Nashville area on 99.7 from 1:00 to 4:00 PM on weekdays, and a television show on the Fox Business Network at 7 PM.

He's known for helping folks get out of debt, but does all aspects of financial counseling. I've heard him walk folks on the radio through similar situations on a regular basis, he or his team should be able to get you going the right direction.

[lowbud]

Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.

He's a financial guru with a facility in Brentwood. He has a syndicated radio show that airs in the greater Nashville area on 99.7 from 1:00 to 4:00 PM on weekdays, and a television show on the Fox Business Network at 7 PM.

He's known for helping folks get out of debt, but does all aspects of financial counseling. I've heard him walk folks on the radio through similar situations on a regular basis, he or his team should be able to get you going the right direction.

Best way to get out of debt is to not pay, then settle with them for pennies on the dollar. I don't need some guru to tell me that.

I'll check this guy out tho.. Looks like I have much work to do on this. I'm hoping I'll never have to deal with this bcause I'm not planning on sticking mom in a home no matter what.. but I guess there's always the "what if I can't take care of her" delima..

I sure don't want uncle sam or uncle bredesen getting anything.. They get enough!