December 9Dec 9 We have finally convinced my father to set up a will or trust for him and my stepmother. Both are 80 yrs old. The only assets they have is a paid for house valued around $500k. They live off their monthly SS checks. The biggest issue we are facing is my stepmother has Alzheimer’s and she is about 5 yrs post diagnosis. We fear that my father will die first and we want to be in a position where we can sell house and use the proceeds to place my stepmother in memory care. Dad won’t do it while he is alive and to be fair I don’t know if he even could afford a room. any advice on the type of trust we should consider? Lady Bird or other? Advice in how to set it up with my mother still living but deep into Alzheimer’s? We is me and my stepsister. We are on the same page. I know things can change but she can’t take care of her mother. we have contacted an estate attorney and are scheduling a meeting. I’m just looking for pitfalls to avoid. thanks
December 9Dec 9 Might not be on topic, but we did the Transfer Upon Death Deed here in Texas, and it saved a ton of frustration! Was easy, filed form with the county, when she died, filed noticed of death at the very same window at the county. They magically combined them together. i.e. No Probate!
December 9Dec 9 Paging @hornian to the Burnt Orange courtesy phone... a Mister "Horn - Ian" tothe Burnt Orange courtesy phone.
December 9Dec 9 I don’t think you need a trust - they’re expensive and I don’t think you need that. FYI -we just went through this. POA for mom now would be nice. When dad dies, put her on a home, sell the house, put money in her acct to pay the bills, split it when she dies. If nothing is contested should be easy.
December 9Dec 9 The TOD deed is generally a good idea. But will she be competent sign a contract to sell the house if he dies first? If the only asset is a house I guess a trust is OK but I am not a fan of it otherwise, because you don't get a step up in basis the same way. For instance, valuable land in wife's family. Set up a trust. Upon death of H, trust became irrevocable. H's half share basis set at X. W dies later after significant appreciation of land, W's basis set at Y. Better without a trust. H dies. W takes the step up. W dies, heirs take the step up of the whole, established at W's death. Not half at H's death and half at W's death. Plus the trust accounting. Pain in the ass. TOD your properties. Set your beneficiaries for your bank accounts at TOD is easy to do and change. Set your beneficiaries for your investment accounts, easy to do online and change. Leave a will for the personal effects.
December 9Dec 9 9 minutes ago, Handcruser said: I don’t think you need a trust - they’re expensive and I don’t think you need that. FYI -we just went through this. POA for mom now would be nice. When dad dies, put her on a home, sell the house, put money in her acct to pay the bills, split it when she dies. If nothing is contested should be easy. and to add, she has to be competent to sign the POAs, there are general, financial, for health care, etc. You need to be having these convos with the attorney.
December 10Dec 10 Lots of good info in here. I'd say at least PM @hornian to gauge his thoughts. He's good at this stuff and a pretty good human
December 10Dec 10 Finding a way to deal with the real estate is worthwhile, because it is a "titled asset" that doesn't have many real good workarounds. It's a hassle to deal with and may create a less-than-ideal title for subsequent sale. TOD/POD is as simple as any. Doing something similar is worthwhile for any bank accounts or IRAs, even if relatively small in amount. Other than that, you don't really need anything else. Competence is something of an issue with anything stepmother has to sign, but it is particularly acute with a power of attorney. Assuming there is anyone (heirs other greedy sumbitches) to contest anything.
December 12Dec 12 @bobcat1995 Would Dad and Stepmom have problems with selling their house now and moving into a rental? I get that people want to remain in their "home" but there's something to be said about downsizing and having a landlord to take care of all houston maintenance and problems. Having $500K in the bank + monthly SS is not a bad financial step. It gives you many options.
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