Protecting mothers assets

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Billionaire
Posts: 339
Joined: Sat Jan 04, 2014 3:05 pm

Protecting mothers assets

Post by Billionaire »

If there is an existing topic on this subject, please direct me accordingly.
My 89 year old mother is currently in an assisted living facility. She has approx. $550,000.00 in liquid assets. I have two sisters. Is there a legal method of transferring the assets to our names.
The assisted living facility itself, takes a five year period into consideration when evaluating her finances in determining her rent for the year.
Gill
Posts: 6795
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Protecting mothers assets

Post by Gill »

Sure. Simply transfer the assets to the three of you and file a Federal gift tax return which won't involve any tax due. Of course, this won't mitigate your mother's financial responsibility for her own care. What happens then when you or your sisters die, divorce or are involved in a lawsuit? Aren't you the guy who just spent $6,000 on a new road bicycle? :x
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
Greatness
Posts: 226
Joined: Mon Feb 11, 2013 7:07 pm

Re: Protecting mothers assets

Post by Greatness »

If you transfer the assets in to you names, then the liability is then on each of you if something happens. The best thing would be to setup an irrevocable trust for your Mom, and have all of you (except Mom) as trustees. That is the safest way to protect the assets. It would be immune to legal or any other issues that effect your Mom or any of you. See a family law or elder law attorney to put it together and set it up correctly. You can have a third party, like a bank or investment house act as the sole trustee, however, access to the money is on them and not you. In addition, you'd have to pay around 1% - 2% in management fees. Keep it in the family.
JGoneRiding
Posts: 1970
Joined: Tue Jul 15, 2014 3:26 pm

Re: Protecting mothers assets

Post by JGoneRiding »

Do you expect her to live >6yr in assisted living ? If not i don't see ur issue. Simply use all her money to pay for her care as it should be then when it runs out apply for Medicaid. But her money is there for exactly this reason .
Greatness
Posts: 226
Joined: Mon Feb 11, 2013 7:07 pm

Re: Protecting mothers assets

Post by Greatness »

Just keep in mind, if you leave in her name or she transfers it to her heirs, before the 5 year look back period expires, the assets will be held against you. Something like this is best to be done much earlier (for everyone else reading) if you have significant assets.
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BL
Posts: 9535
Joined: Sun Mar 01, 2009 2:28 pm

Re: Protecting mothers assets

Post by BL »

JGoneRiding wrote:Do you expect her to live >6yr in assisted living ? If not i don't see ur issue. Simply use all her money to pay for her care as it should be then when it runs out apply for Medicaid. But her money is there for exactly this reason .
+1
I hope she gets as good value for her money as possible.
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