Well, I'm old. So, I would like to give my "kids" a few bucks. But if I do, I risk delays in any government help should I (shudder) need to go to a senior home.

Same deal with charity contributions. They look back 5 years.

But, I can pee my money away at a casino, rent hookers ( not sure why ), or basically do anything that wouldn't benefit anybody who could actually use it.

Hard to believe.

hj

 

My wife and I have explained to our family that after a lifetime of work, we've saved enough for our senior years to not be a burden on anyone. If we one day need special care, it will be paid for from our savings/investments and no family member will be responsible for the care of old people that aren't able feed or dress themselves. When both of us are gone, whatever is left will be distributed according to our will(s).

They fully understand and agree that being primarily responsible for their own lives now and probably getting an inheritance some years out is better than getting something now and being locked into baby sitting if either of us ever decline into that state.

 

I am gonna guess that staying at home, hiring it done and just keeping quiet is a good choice.
There are lots of Choices in life, mostly worser, not so smart, etc.

 

Maybe I wasn't clear. The government ( Medicaid ) will pay for me to go to a senior home ( which is a welfare program - nothing but) -- if don't have any money -- even if I foolishly pissed it all away. But they will penalize me if I gave some to a charity or a friend or relative.
I'm willing to pay my share, but the rules seem a little strange -- especially the one about charity.

hj

 

I think the situations or concerns you have can be adequately addressed by an attorney familiar with such issues. As with most laws lawyers always seem to find legal and "safe" ways to get around them.

 

I've reached the age where "life in prison" isn't nearly the deterrent that it once was. Sacrificing a few lawyers is beginning to look like a pretty damned fine legacy!

 

It's sad that it works out that way. Rules, laws, regulations have gone to far. It's your $$ & you've worked for it & paid your taxes, yet they still want to tell you what you can & can't do with it. Fill some Mason jars & give it to whomever you wish.

 

I hate to take the government's side on this, but I have to. Imagine have a million dollar 401(k) or IRA. If you need to spend your final years in a senior home that sum should pay for a facility for 10 years and still leave a 6 figure sum to your heirs. Most folks require less than 10 years before hospice comes in.

Those government rules are saying that you can't give your money away to the point of being destitute and expect the taxpayer to foot the bills that you were prepared to handle.

Find out what senior care costs in your area and hang onto at least 5 times that. (I'd hang onto more.) If you want to buy the kids a second honeymoon or down payment on a cabin in the mountain just make sure it comes out of the "excess".

 

Easy solution and one I've been doing for years. Buy gold bullion. The US government sees bullion and coins as a collectable item, not monetary. It's also somewhat untraceable if bought in amounts under $10,000. My plan is to use it to supplement my pension only as needed. It will not show as income. When I die, the kids get it free and clear. The house and land will be handled similarly through a trust. I will show no assets whatsoever if that time comes I need assisted living.

 

but!! lets say I squandered my million on loose women and booze now at the end I need care, we both paid taxes, you saved your money for your kids to inherit, so you have to pay your own bills to have care. I get a free ride because I wasn't as smart as you.
doesn't seem right

 

There's a LOT about our government, taxes, etc. that isn't fair. In my scenario there's something left for the kids. In yours, there's not. At least my approach leaves the opportunity that the kids get some of it AND I get my late-in-life care!

 

I fully agree with you, our plan is the same. All of our houses are paid off, all of our vehicles are paid off. our only debt is what we financed on our 2022 Grand design.
it just isn't right that my kids will be hit with massive inheritance taxes because we were smart in out finances and was looking to the future.

 

If you're talking about true inheritance taxes, those are at the state level and establishing resident in a state that doesn't have that tax could be in order.

Federal estate taxes are levied on estates more than about $12M. If you've accumulated that much wealth in a single lifetime you've done exceptionally well. Kudos!

 

We have the same issue here in CA, they even count the number of vehicle's you have. Tangible assets can and should be in a trust, and you become 1st trustee and you can name your kids in order (2 3 4 ect.) You pretty much make the rules and if written correctly , can keep it from the tax man and welfare. You can include most everything with addendums. Your home for example here in CA it keeps the property in prop 13 which keeps the property tax at the rate when purchased. Even when passed to the next trustee, also if sued the property is not in your assets therefore out or reach of the suite, you can include weapons also. many pro's and a few con's but that is for your mouthpiece to discuss. . You can mess up and they will try to suck you dry, a trust can not. A trust can be a very important tool in estate planning.

This is for Big Brother :-). Disclaimer: I am not an attorney or paid actor, Just a bum who wants to keep his stuff !! LOL

The govt. believes everyone will be on govt. chez (welfare) at some point, so they try to extract as much as they can out of us until then. With Me being retired and the majority of assets in trust I qualify for a govt. phone by income, I also qualify under program based (VA). No, I don't have one because it is not right to take a benefit when not needed just cus you can.
Good luck to you and you do have options not many but a few Mike/EZ

 

This I need to look into!