Need opinion on legal matters concerning Last Will and Testament

[Inverter]

Need opinion on legal matters concerning Last Will and Testament

My mother is 93 years old and has started sending me checks in the mail. The first one was three weeks ago and the amount was $5,000. I told her that I don't need and don't want her money.

Anyway, I received and check for $6,000 today. She explained in a short note that her Attorney is advising to reduce her liquid assets (like the two IRA accounts) before passing away, otherwise the State of Michigan will seize it.

I have three sisters, so that means my mother is giving away $24,000 a month.

Here's the twist:

I called my older sister a week ago and she said, "Mom isn't eligible for Medicaid because of her income, so as her Power of Attorney, I advised her to reduce her income and bank account balance."

I replied, "Why are you talking about Medicaid? Mom isn't eligible for Medicaid. She already has Medicare, plus Medical and Dental insurance, plus two IRA incomes and Social Security. I suggest you read the Medicare 2017 handbook. Hospice care is covered in Medicare Part "A" which is free."

Conclusion:

I believe my sister is giving out wrong advice and my mother believes every word. I live in Florida and the rest of my family lives in Michigan, so there is nothing I can do. I'm depositing the checks, but if my mother ever needs the money, it's in the mail."

What are your thoughts?

 

[Hard_Rom]

See a lawyer.

 

[MankoZ28]

See a lawyer.

and a tax accountant

 

[Darbhinder]

Need opinion on legal matters concerning Last Will and Testament

My mother is 93 years old and has started sending me checks in the mail. The first one was three weeks ago and the amount was $5,000. I told her that I don't need and don't want her money.

Anyway, I received and check for $6,000 today. She explained in a short note that her Attorney is advising to reduce her liquid assets (like the two IRA accounts) before passing away, otherwise the State of Michigan will seize it.

I have three sisters, so that means my mother is giving away $24,000 a month.

Here's the twist:

I called my older sister a week ago and she said, "Mom isn't eligible for Medicaid because of her income, so as her Power of Attorney, I advised her to reduce her income and bank account balance."

I replies, "Why are you talking about Medicaid? Mom isn't eligible for Medicaid. She already has Medicare, plus Medical and Dental insurance, plus two IRA incomes and Social Security. I suggest you read the Medicare 2017 handbook. Hospice care is covered in Medicare Part "A" which is free."

Conclusion:

I believe my sister is giving out wrong advice and my mother believes every word. I live in Florida and the rest of my family lives in Michigan, so there is nothing I can do. I'm depositing the checks, but if my mother ever needs the money, it's in the mail."

What are your thoughts?

http://vignette3.wikia.nocookie.net/uncyclopedia/images/1/1c/Go_fuck_yourself.png/revision/latest?cb=20081220105234

 

[Inverter]

http://vignette3.wikia.nocookie.net/uncyclopedia/images/1/1c/Go_fuck_yourself.png/revision/latest?cb=20081220105234

Thank you for your helpful advice.

 

[Super-Surprise]

Just send the cheques on to me Grampa Bill.

 

[Que]

I was hoping that it was Grandpa Bill's will that was imminently needed.

 

[phrodeau]

Need opinion on legal matters concerning Last Will and Testament

My mother is 93 years old and has started sending me checks in the mail. The first one was three weeks ago and the amount was $5,000. I told her that I don't need and don't want her money.

Anyway, I received and check for $6,000 today. She explained in a short note that her Attorney is advising to reduce her liquid assets (like the two IRA accounts) before passing away, otherwise the State of Michigan will seize it.

I have three sisters, so that means my mother is giving away $24,000 a month.

Here's the twist:

I called my older sister a week ago and she said, "Mom isn't eligible for Medicaid because of her income, so as her Power of Attorney, I advised her to reduce her income and bank account balance."

I replies, "Why are you talking about Medicaid? Mom isn't eligible for Medicaid. She already has Medicare, plus Medical and Dental insurance, plus two IRA incomes and Social Security. I suggest you read the Medicare 2017 handbook. Hospice care is covered in Medicare Part "A" which is free."

Conclusion:

I believe my sister is giving out wrong advice and my mother believes every word. I live in Florida and the rest of my family lives in Michigan, so there is nothing I can do. I'm depositing the checks, but if my mother ever needs the money, it's in the mail."

What are your thoughts?

Sounds like your sister is giving out advice that best benefits your sister.

 

[Killswitch1]

Sounds like your sister is giving out advice that best benefits your sister.

I'd say it's benefiting all the kids.

I'd be concerned about taxes if she keeps this up.

I think it's 14 grand in a year she can give you before everyone needs to declare

 

[KimGordon67]

This seems like a terrible place to seek legal advice.

Morally, though, it's her money to do what she wants with, and (theoretically at least - I'm flummoxed as to how the state could seize it, but most things about your legal system confuse me) you'd end up with it eventually anyway. If it makes her happy to deal with the situation in whatever weird way she is, and it's not causing her any harm, it probably doesn't really matter.

Here, though, there's a limit to how much you can gift someone else (outside of the deceased estate scenario) without it creating tax-related issues. No doubt you lot have different laws, but that might be worth checking out.

 

[Porkwarrior]

What is the Estate Tax in the US nowadays, back to 50%? (Thanks Obama!)
It's probably not a bad idea...but if you're home for the holidays take an extra day or two and take mum accountant/financial planner shopping.

I hope mum has a current will that's been updated this millennium?

 

[KimGordon67]

What is the Estate Tax in the US nowadays, back to 50%? (Thanks Obama!)
It's probably not a bad idea...but if you're home for the holidays take an extra day or two and take mum accountant/financial planner shopping.

I hope mum has a current will that's been updated this millennium?

As someone who's just about to start dealing with the mess of their father's estate, I cannot encourage people strongly enough to have a will. A situation that really should be straightforward is going to lengthy, complicated, probably cause arguments, and cost a bit of money because my father never got around to writing down all the stuff he told us he was going to do in his will. (Note - we got told a lot of conflicting and vague stuff, so no, that is of no help or legal standing.)

 

[Colonel Hogan]

Need opinion on legal matters concerning Last Will and Testament

My mother is 93 years old and has started sending me checks in the mail. The first one was three weeks ago and the amount was $5,000. I told her that I don't need and don't want her money.

Anyway, I received and check for $6,000 today. She explained in a short note that her Attorney is advising to reduce her liquid assets (like the two IRA accounts) before passing away, otherwise the State of Michigan will seize it.

I have three sisters, so that means my mother is giving away $24,000 a month.

Here's the twist:

I called my older sister a week ago and she said, "Mom isn't eligible for Medicaid because of her income, so as her Power of Attorney, I advised her to reduce her income and bank account balance."

I replies, "Why are you talking about Medicaid? Mom isn't eligible for Medicaid. She already has Medicare, plus Medical and Dental insurance, plus two IRA incomes and Social Security. I suggest you read the Medicare 2017 handbook. Hospice care is covered in Medicare Part "A" which is free."

Conclusion:

I believe my sister is giving out wrong advice and my mother believes every word. I live in Florida and the rest of my family lives in Michigan, so there is nothing I can do. I'm depositing the checks, but if my mother ever needs the money, it's in the mail."

What are your thoughts?

Having gone through this with my own mother within the past year, a lot of it has to do with your mother's health and her ultimate living situation.

While Medicare does cover hospice care for terminally ill patients with a life expectancy of six months or less, Medicare does NOT cover long-term nursing home care. Medicaid DOES cover long-term nursing home care, but Medicaid is a program for the indigent. Strict income and asset limitations apply. If nursing home care is contemplated for your mother, this might be what your sister is thinking about in spending down her assets. Obviously, the size of your mother's estate factors into how quickly this can practically be accomplished.

But there is more. Medicaid has a five-year "look back" period regarding gifts such as your mother is giving to you and your sister. That means within a five-year period prior to the date your mother would enter a nursing home AND apply for Medicaid, all financial gifts to you and your siblings would be counted against your mother's recoverable assets and would substantially delay the actual start date for Medicaid benefits. Furthermore, your mother must be IN an administratively designated Medicaid bed within the nursing home BEFORE she can even apply for Medicaid benefits. Not all nursing homes have Medicaid beds, and of those that do, the percentage of designated Medicaid beds varies widely. Suffice it to say, there is heavy demand for those beds.

If you're not contemplating nursing home care for your mother, then the whole Medicaid discussion is probably pointless and there is no reason to attempt to qualify for Medicaid. But if that is a possibility, Medicaid is the only government program I am aware of that covers long-term nursing home costs. It's either that or you pay for it out of your own pocket to the tune of $7,000 - $9,000 per month. Or private long-term care insurance which your mother isn't going to be able to buy at her age.

If your mother's estate is at all sizeable and you are seriously contemplating nursing home care for her, I strongly advise you talking to an attorney specializing in "elder care" which is a euphemism for Medicaid qualification and estate preservation.

If a nursing home is not contemplated, then a standard estate lawyer should be able to handle the tax implications on the estate which your mother leaves to her heirs.

But, yeah, you need some kind of lawyer pronto.

 

[doowdniw]

The cynic in me thinks that by accepting her gifts, you will have a harder time asserting lack of capacity, should it become necessary. But that's just me being cynical.

 

[Inverter]

Sounds like your sister is giving out advice that best benefits your sister.

That's what I'm thinking, but it's not out of greed. It's ignorance.

 

[Inverter]

Having gone through this with my own mother within the past year, a lot of it has to do with your mother's health and her ultimate living situation.

While Medicare does cover hospice care for terminally ill patients with a life expectancy of six months or less, Medicare does NOT cover long-term nursing home care. Medicaid DOES cover long-term nursing home care, but Medicaid is a program for the indigent. Strict income and asset limitations apply. If nursing home care is contemplated for your mother, this might be what your sister is thinking about in spending down her assets. Obviously, the size of your mother's estate factors into how quickly this can practically be accomplished.

But there is more. Medicaid has a five-year "look back" period regarding gifts such as your mother is giving to you and your sister. That means within a five-year period prior to the date your mother would enter a nursing home AND apply for Medicaid, all financial gifts to you and your siblings would be counted against your mother's recoverable assets and would substantially delay the actual start date for Medicaid benefits. Furthermore, your mother must be IN an administratively designated Medicaid bed within the nursing home BEFORE she can even apply for Medicaid benefits. Not all nursing homes have Medicaid beds, and of those that do, the percentage of designated Medicaid beds varies widely. Suffice it to say, there is heavy demand for those beds.

If you're not contemplating nursing home care for your mother, then the whole Medicaid discussion is probably pointless and there is no reason to attempt to qualify for Medicaid. But if that is a possibility, Medicaid is the only government program I am aware of that covers long-term nursing home costs. It's either that or you pay for it out of your own pocket to the tune of $7,000 - $9,000 per month. Or private long-term care insurance which your mother isn't going to be able to buy at her age.

If your mother's estate is at all sizeable and you are seriously contemplating nursing home care for her, I strongly advise you talking to an attorney specializing in "elder care" which is a euphemism for Medicaid qualification and estate preservation.

If a nursing home is not contemplated, then a standard estate lawyer should be able to handle the tax implications on the estate which your mother leaves to her heirs.

But, yeah, you need some kind of lawyer pronto.

http://i.imgur.com/uY2hUrg.gif

Thanks Hogan, that's the advice I was looking for. You are the man...

 

[4est_4est_Gump]

See a lawyer.

and a tax accountant

Much better options than getting advise on a porn board.

 

[4est_4est_Gump]

Having gone through this with my own mother within the past year, a lot of it has to do with your mother's health and her ultimate living situation.

While Medicare does cover hospice care for terminally ill patients with a life expectancy of six months or less, Medicare does NOT cover long-term nursing home care. Medicaid DOES cover long-term nursing home care, but Medicaid is a program for the indigent. Strict income and asset limitations apply. If nursing home care is contemplated for your mother, this might be what your sister is thinking about in spending down her assets. Obviously, the size of your mother's estate factors into how quickly this can practically be accomplished.

But there is more. Medicaid has a five-year "look back" period regarding gifts such as your mother is giving to you and your sister. That means within a five-year period prior to the date your mother would enter a nursing home AND apply for Medicaid, all financial gifts to you and your siblings would be counted against your mother's recoverable assets and would substantially delay the actual start date for Medicaid benefits. Furthermore, your mother must be IN an administratively designated Medicaid bed within the nursing home BEFORE she can even apply for Medicaid benefits. Not all nursing homes have Medicaid beds, and of those that do, the percentage of designated Medicaid beds varies widely. Suffice it to say, there is heavy demand for those beds.

If you're not contemplating nursing home care for your mother, then the whole Medicaid discussion is probably pointless and there is no reason to attempt to qualify for Medicaid. But if that is a possibility, Medicaid is the only government program I am aware of that covers long-term nursing home costs. It's either that or you pay for it out of your own pocket to the tune of $7,000 - $9,000 per month. Or private long-term care insurance which your mother isn't going to be able to buy at her age.

If your mother's estate is at all sizeable and you are seriously contemplating nursing home care for her, I strongly advise you talking to an attorney specializing in "elder care" which is a euphemism for Medicaid qualification and estate preservation.

If a nursing home is not contemplated, then a standard estate lawyer should be able to handle the tax implications on the estate which your mother leaves to her heirs.

But, yeah, you need some kind of lawyer pronto.

Why do you do this and undermine all of our efforts to law-shame?

​

 

[Colonel Hogan]

Why do you do this and undermine all of our efforts to law-shame?

​

Just a natural killjoy, I guess.

https://media2.giphy.com/media/tpwwhv1BLd31e/200.gif#5

 

[RoryN]

Much better options than getting advise on a porn board.

Getting what?

 

[thør]

I'd say it's benefiting all the kids.

I'd be concerned about taxes if she keeps this up.

I think it's 14 grand in a year she can give you before everyone needs to declare

That's about right.

 

[Colonel Hogan]

I'd say it's benefiting all the kids.

I'd be concerned about taxes if she keeps this up.

I think it's 14 grand in a year she can give you before everyone needs to declare

Yeah, I missed this one earlier. There is both an annual tax-free gift exclusion and a lifetime tax-free exclusion which currently is in excess of $5 million. But obviously "most" of us would be more likely to be bitten by the annual gift limitation than by the lifetime one.