Don't be a 14 year old kid that takes your aunt's '77 Lincoln convertible that how the hell were you supposed to know she loved more than life itself apparently for a drive without permission and put it in a ditch trying to make a corner too fast because you had no idea how hard that ****ing boat was to turn. That way you won't have to hear about how you are being cut out of her will for the next god damn week.
There's some inheritance advice for you.

Generally this isn't the case with government pensions, which these are. What you're talking about sounds alot more like annuities.

What would happen in two situations, assuming you can't do what you're suggesting (which I'm pretty positive is the case).

Assumptions: $250K in assets and $3,300/month in pension/SS, etc. income.

1. she goes into a nursing home with no planning. Assume $10K/month. She is responsible for the entire $10K per month and will get no medicare/medicaid/state help until she spends all her assets down to near zero (in Mass. the amount is $2,000 or less), then Medicaid kicks in. So every month you would pay $3,300 of her income, plus almost $7K of her assets, meaning the entire $250K is spent down in 36 months. After that, the government pays for the nursing home, and takes the entire $3,300/month to offset that.

If she owns a home, the government would likely put a lien on it as well. They don't usually force a sale, but they will have a lien based on the amount they pay.


2. Proper estate planning would probably involve re-titling the house (if any) to a trust and/or the kids, and moving the liquid assets into a trust as well. She is the beneficiary of the trust, but it specifies that the principal (the res) cannot be touched. After she dies, the beneficiaries are the heirs. There is a look-back period of some time (several years at least). Once the look-back period is exhausted, then the transfer of assets to the kids/trust cannot be touched by the government. Congrats, you have made her legally poor enough for the government to pay the entire amount of the nursing home.


NOTE: LEGAL ADVICE ON CHIEFSPLANET IS FREE FOR A REASON, AND WORTH WHAT YOU PAID FOR IT.

I agree with this guy that said that guy knows what he is talking about. We missed the boat on this with my Grandma in South Dakota a couple years back. She had given us all a little bit of money and they came after it. I had saved it so it was not a bid deal to me. To some of the poors in the family they had issues. I think one even did a payday loan to pay back.

Good stuff guys. Thank you. Getting an attorney.

Big key here -- not all attorneys are made equal. Make sure you get one that has experience with estate planning / elder law.

Some guy that does slip and falls, that lady that helped your buddy out with his divorce, or that other guy that does real estate closings, ain't going to be able to help you.

Here, two minutes on Google, based on your location:

http://www.northlandelderlaw.com/

http://www.fulkersonelderlaw.com/

http://smithelderbusinesslaw.com/about-us/


Now is also the time to find out if she has a will, etc. If she does, how old is it? It might need to be redone depending on whether there have been changes in circumstances.

Word for the wise: with this shit it's pay now or pay later, but if you **** it up, you will most assuredly pay ALOT MORE later...

Good. You're going to need one when you spend it all on hookers and blow.

Like others have said, pretty much the only reason to gift money from an estate is to get below the $5M exemption so you don't have to pay estate tax OR to eliminate any assets to get Medicaid to cover rest home.