Posts: 41
Threads: 14
Joined: Jan 2008
Reputation:
0
good morning...
wow - I *really* appreciate all this information. this is very helpful - thank you.
two of my siblings have some serious issues and my family can be contentious with respect to drama in those areas... my mom can get caught up in things emotionally to where she shuts down and I think that if my Dad died, that is a likely reaction on her part. there is not a lot of money to speak of that I am aware of - if there is, I would be surprised. again, my main concern is just making sure that my parents needs are met and that there is as little drama as possible in the way of disputes - of course, there is a lot here outside of one's control, and that is understood.
regardless, all of the information here is information that I can use and look into. it gives me a place to start. timing is everything, as is the way this topic is conveyed...
thanks again for all the feedback!
shiva
Posts: 21,123
Threads: 7,559
Joined: May 2025
Reputation:
0
Chupa: taxes are being paid on a Trust but there are special circumstances where taxes are not doubled up. I didn't say no taxes were being paid on the Trust to me or my Trust to my kids.
I am not paying the taxes owed on my mother's Trust to the Federal Government either....and it is all quite legal.
Posts: 785
Threads: 187
Joined: Apr 2025
Reputation:
0
>I am not paying the taxes owed on my mother's Trust to the Federal Government either....and it is all quite legal
Can you explain this a little better? We are in a situtation where the inheritance tax on my mother's home is so high that we have to sell the house to pay the taxes. It's ironic that the values of homes in California have gone up so much that we can't afford to keep it.
Posts: 840
Threads: 102
Joined: May 2022
Reputation:
0
[quote loveshine]>I am not paying the taxes owed on my mother's Trust to the Federal Government either....and it is all quite legal
Can you explain this a little better? We are in a situtation where the inheritance tax on my mother's home is so high that we have to sell the house to pay the taxes. It's ironic that the values of homes in California have gone up so much that we can't afford to keep it.
I am curious too. If there are inheritance taxes owed how are you able to legally not pay them.
Also I really don't understand this sentence either.
taxes are being paid on a Trust but there are special circumstances where taxes are not doubled up
Could you clarify this a little bit.
Posts: 4,019
Threads: 29
Joined: Feb 2024
Reputation:
0
I don't do living trusts, and know little about them, but I have quite a bit of experience with the other issues raised, since I now practice elder law. There really are two separate questions, health care related and financially related.
For the health care issues, your parents should execute what is called an advance directive or durable power of attorney for health care (or maybe a living will) in your state. There are two aspects to an advance directive, the appointment of an agent to make medical decisions for you, and any medical instructions or preferences you may have. Your state's forms should be available online, and this should be pretty straightforward for most to do on their own.
The financial issues are much more complicated, particularly if you are thinking of a living trust, or a will, or avoidance of probate, and any tax implications. However, given your parents health status, the single most important consideration is the possibility that either of them will need nursing home level care (which can be provided in a nursing home, community or residential care home, or in their own home in many states) in the next 5 years. Nursing home level care can run 6000 a month or more and can continue for months or years (the average stay is a little over 2 years), so the cost is very high, and most need to go onto medicaid at some point. Medicaid law changed dramatically in Feb 2006 for the worst. Planning for possible long term care medicaid outweighs any other consideration at this point, so you need to have them consult with an attorney about that issue, as well as all the rest. A general or financial power of attorney would also be a good idea for them to do.
Posts: 1,880
Threads: 110
Joined: Jan 2025
Reputation:
0
The simplest and easiest things to have in a community property state is a community property agreement (notarized). It will transfer assets probate-free to the surviving spouse.
As for health care directives, that should be on the necessary list as well, for both parents. Maybe you could offer to take them to an attorney for estate planning...
Posts: 1,648
Threads: 281
Joined: May 2020
Reputation:
0
Use CAUTION with the living trust. My Father remarried after my mother's death. He and my new stepmother had almost and equal share of assets. Dad's intent was that assets would go to whomever out-lived the other, and upon the death of the second party, the remaining assets would be shared 50% to my step-mother's children and 50% to my Dad's children. Not much was involved other than a nice house. GUESS WHAT, after dad's death... the stepmother deeded the entire house over to her children several years before her death. Dad's children were left with nothing. When we contacted the attorney, he said the remaining trustee (stepmother in this case) has the legal right to change anything. In the case of second marriages, there needs to be something to prevent the one side from getting the shaft.
shiva