OFFICIAL THREAD about "NOTHING"

[call_me_ishmael]

I have relatives who are morons
My very elderly grandma just had a stroke and has to be put in a home
They will drain her savings as well as the home the home that is paid in full...or they could

Be smart

When you hit your 80's sing it all over to your kids

How do you do this, though? Aren't there serious tax implications of gifting that much money?

Can you use trusts to get around issues like this?

[Bretsky]

How do you do this, though? Aren't there serious tax implications of gifting that much money?

Can you use trusts to get around issues like this?

You can gift a certain amount each year, I think..w/o implications.

But to this specific instance, what I'm suggesting is in regards to a house that is owned Free and Clear

You have to get that out of your name and into your kids name to prevent a health care organization to take every penny of the equity

[red]

so i just read somewhere that the big fat fuck that pushed that rock off the spot its been on for 170 million years out of fears that it might fall on some kid, sued a guy last year whos daughter was in car car that hit him

guys saying he's too disable because of the accident to do anything anymore

if i were the judge, i'd tell this guy the same thing i told some fat fuck at mehnards who took the last rascal forcing me to hobble all over the store 2 weeks after my surgery, only to watch him stand up and carry his wife purchases out to the car without a problem. "being too fucking fat for your own legs to hold up is not a handicap, its a way of life you have chosen"

[MJZiggy]

I can agree with this. If you're going to use that thing, it should because you really can't do it on your own, not because you've never moved your whole life and don't know how.

[GrnBay007]

You can gift a certain amount each year, I think..w/o implications.

But to this specific instance, what I'm suggesting is in regards to a house that is owned Free and Clear

You have to get that out of your name and into your kids name to prevent a health care organization to take every penny of the equity

I believe you have to get it out of their name a certain amount of years prior to them going into a home. I'm thinking it's 5 but I'm not sure. Otherwise everyone would go get the house out of their parent's name a week before they go into a home. Obviously need to plan ahead and it's often a difficult conversation to have with your aging parents. I'm hoping when my time comes I am of sound mind and can take the lead and get all this done without stressing them.

[call_me_ishmael]

I'm thinking the key is to get the house into your kids name early but have a contract drafted up that no matter what you can live in the house indefinitely. Gotta protect yourself.

I know my family has historically used trusts to pass money around but I think the days of doing that are kind of over. I think a lot of the loopholes to avoid taxes are closed.

Don't a lot of very rich people pay basically full price for life insurance right before they die... as in, take out 10M dollar policy whole life policy for 10M, possibly even taking a loss on the return (buying it for 11M) to avoid taxes? Life insurance returns can't be taxed presently if I remember correctly.

[3irty1]

I'm thinking the key is to get the house into your kids name early but have a contract drafted up that no matter what you can live in the house indefinitely. Gotta protect yourself.

I know my family has historically used trusts to pass money around but I think the days of doing that are kind of over. I think a lot of the loopholes to avoid taxes are closed.

Don't a lot of very rich people pay basically full price for life insurance right before they die... as in, take out 10M dollar policy whole life policy for 10M, possibly even taking a loss on the return (buying it for 11M) to avoid taxes? Life insurance returns can't be taxed presently if I remember correctly.

You can make a revocable trust to hold your assets with a successor, creating a durable power of attorney is much more attractive if you've got kids you can trust. Pretty sure that's my purpose as my parents have done a good job keeping me in a psychological prison of unselfishness. My brother and sister must be the kidney donors.

[Bretsky]

I believe you have to get it out of their name a certain amount of years prior to them going into a home. I'm thinking it's 5 but I'm not sure. Otherwise everyone would go get the house out of their parent's name a week before they go into a home. Obviously need to plan ahead and it's often a difficult conversation to have with your aging parents. I'm hoping when my time comes I am of sound mind and can take the lead and get all this done without stressing them.

You are right; it is 5 years
I'm prety outspoken on some topics; modest on others.
I told my parents they were stupid on this and everybody should be doing this
One of my parents who speaks before thinking noted they weren't signing the home over to us (brother and I)
Then I told her she was an idiot too then
It was all good..........but for gosh sakes...hopefully others can learn from stupid mistakes like this

[MJZiggy]

You can gift a certain amount each year, I think..w/o implications.

But to this specific instance, what I'm suggesting is in regards to a house that is owned Free and Clear

You have to get that out of your name and into your kids name to prevent a health care organization to take every penny of the equity

A few years ago, it was less than $10K.

[Patler]

I have relatives who are morons
My very elderly grandma just had a stroke and has to be put in a home
They will drain her savings as well as the home the home that is paid in full...or they could

Be smart

When you hit your 80's sing it all over to your kids

I told my parents that their assets were their assets, to be used in what ever way they want. Preserving their assets to pass down to me and my siblings should not be a concern or obligation, unless that is what they want. Both are/were fiercely independent, and wanted to take care of themselves, through their own means, for as long as possible.

My father died some years ago in his 90's, my mother is still alive and in her 90's. She owns their house free and clear, and it remains in her name. She wants to know it is hers, and the value is available to take care of her if ever needed.

I wouldn't have it any other way.

[call_me_ishmael]

I told my parents that their assets were their assets, to be used in what ever way they want. Preserving their assets to pass down to me and my siblings should not be a concern or obligation, unless that is what they want. Both are/were fiercely independent, and wanted to take care of themselves, through their own means, for as long as possible.

My father died some years ago in his 90's, my mother is still alive and in her 90's. She owns their house free and clear, and it remains in her name. She wants to know it is hers, and the value is available to take care of her if ever needed.

I wouldn't have it any other way.

I can really see it both ways. It's a tough topic. You spent your whole life working hard and doing things right and see all of your independence stripped away at an old age - that's rough. On the other hand, it is foolish to flush money down the toilet.

I'm a stingy bastard so I suspect I will do what makes the most sense monetarily. Who knows, I may feel differently when I'm a wiley 90 year old.

Anybody have any thoughts on the life insurance hack? Buy an expensive whole life policy at old age at cost or even a loss to avoid taxes?

[3irty1]

I can really see it both ways. It's a tough topic. You spent your whole life working hard and doing things right and see all of your independence stripped away at an old age - that's rough. On the other hand, it is foolish to flush money down the toilet.

I'm a stingy bastard so I suspect I will do what makes the most sense monetarily. Who knows, I may feel differently when I'm a wiley 90 year old.

Anybody have any thoughts on the life insurance hack? Buy an expensive whole life policy at old age at cost or even a loss to avoid taxes?

I believe a big policy can count towards your federal estate tax. I think the cap for your whole estate is 5 million though. If you've got a successor with power of attorney they might be able to take the policy out on you such that they have the incidents of ownership and avoid estate tax. My great uncle had an estate planner work with him to get his estate down to that number and pile the rest into farmland as you can pass the family farm on tax free. At least that was how it was explained to me back in high school, that's all 2nd or 3rd hand information.

Isn't your family in the insurance business?

[Patler]

How is it flushing money down the toilet if you pay for your own care instead of giving the money to your relatives and having your care paid by someone else?

[Bretsky]

How is it flushing money down the toilet if you pay for your own care instead of giving the money to your relatives and having your care paid by someone else?

When you have dimensia...sp ? .............I'm not sure the quality of life and care is much better regardless. My parents are well off; my grandma is 99 and for the past five years they call her 3 times a day and visit her daily. And now she has a minor stroke, and is put into some facility that takes about 10G per month away. I may be bias or ignorant....but I think it's flushing 10G away per month rather than property planning for this.

[Bretsky]

I told my parents that their assets were their assets, to be used in what ever way they want. Preserving their assets to pass down to me and my siblings should not be a concern or obligation, unless that is what they want. Both are/were fiercely independent, and wanted to take care of themselves, through their own means, for as long as possible.

My father died some years ago in his 90's, my mother is still alive and in her 90's. She owns their house free and clear, and it remains in her name. She wants to know it is hers, and the value is available to take care of her if ever needed.

I wouldn't have it any other way.

I've been telling my parents for the past ten years they should be planning for what happened last week. As a parent given the same scenario my kids will have owned the home fifteen to twenty years already