- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Consolidating estate of parents in declining health
Posted on 5/7/13 at 7:07 am
Posted on 5/7/13 at 7:07 am
Soliciting tips and input from folks who have traveled this path.
Back story: My wife’s mom is losing a battle with cancer and is not long for this world. Her dad’s health is poor, and he’ll likely end up living with us as he will not thrive on his own. My mother-in-law is a small business owner, so there’s inventory to liquidate. House needs upgrades prior to renting / selling. All money generated by consolidation will go to my father-in-law and his care, and then eventually to my wife and her brother.
My wife will do the heavy lifting on this, with minimal input from her brother. She’s savvy – money-smart and very organized – but has never done anything like this before. Are there certain procedural things she should be aware of? Should she set up a separate account for the money generated (from liquidation) and spent (home improvements) during this process? How tax liabilities from liquidation are best handled? What else am I not thinking of?
My concern is that everything be perceived as above board – which I’m certain it will be – by her brother who ultimately has a vested interest in the financial outcome of this process. The last thing we need is a petty rift in the family over money during a significant emotional stressor.
TIA
ETA: Thanks to admins for moving to MT and deleting asinine OT post
Back story: My wife’s mom is losing a battle with cancer and is not long for this world. Her dad’s health is poor, and he’ll likely end up living with us as he will not thrive on his own. My mother-in-law is a small business owner, so there’s inventory to liquidate. House needs upgrades prior to renting / selling. All money generated by consolidation will go to my father-in-law and his care, and then eventually to my wife and her brother.
My wife will do the heavy lifting on this, with minimal input from her brother. She’s savvy – money-smart and very organized – but has never done anything like this before. Are there certain procedural things she should be aware of? Should she set up a separate account for the money generated (from liquidation) and spent (home improvements) during this process? How tax liabilities from liquidation are best handled? What else am I not thinking of?
My concern is that everything be perceived as above board – which I’m certain it will be – by her brother who ultimately has a vested interest in the financial outcome of this process. The last thing we need is a petty rift in the family over money during a significant emotional stressor.
TIA
ETA: Thanks to admins for moving to MT and deleting asinine OT post
This post was edited on 5/7/13 at 10:58 am
Posted on 5/7/13 at 7:22 am to GarmischTiger
From experience and not talking out my butt on this.
1. If your wife can truly handle it, let her. No matter how long you have been married, despite what you may think, you are an "outsider" to other family members when $$$$ comes into play. My wife can't handle money and the rest of the family lives across the country. I went out of my way to take care of several small matters (closing credit accts, paying property taxes) and kept everyone informed of every step. Next thing you know, I am being accused of all kinds of crazy shite. Later on talked with others who encountered the same thing. Money and grief makes sane people crazy.
2. Keep immaculate records of everything. I did and it helped when I was accused.
3. Be ready for the tax man. The Gov has to get theirs one last time..
1. If your wife can truly handle it, let her. No matter how long you have been married, despite what you may think, you are an "outsider" to other family members when $$$$ comes into play. My wife can't handle money and the rest of the family lives across the country. I went out of my way to take care of several small matters (closing credit accts, paying property taxes) and kept everyone informed of every step. Next thing you know, I am being accused of all kinds of crazy shite. Later on talked with others who encountered the same thing. Money and grief makes sane people crazy.
2. Keep immaculate records of everything. I did and it helped when I was accused.
3. Be ready for the tax man. The Gov has to get theirs one last time..
Posted on 5/7/13 at 7:57 am to GarmischTiger
Make sure there's understanding on what your wife gets, as well as her brother. He'll let her do all the work, and expect more than his share.
Posted on 5/7/13 at 8:11 am to GarmischTiger
How is the business owned? Do your parents complete a Schedule C for your mom's business on their taxes?
Posted on 5/7/13 at 10:29 am to GarmischTiger
Your MIL needs to consult with an estate planning attorney. He will be able to help her arrange her affairs to prevent acrimony among family members, by spelling out your wife's role in administering her affairs, while making sure her estate is utilized in the manner she desires. If set up properly any estate tax tour MIL might owe can be deferred until your FIL passes away.
Do the same for your father to get the necessary documents allowing you to make decisions on his behalf.
Do the same for your father to get the necessary documents allowing you to make decisions on his behalf.
Posted on 5/7/13 at 10:40 am to GarmischTiger
In addition to all the other good advice submitted KEEP RECEIPTS FOR EVERYTHING.
Even essential items you pick up for them and reimburse. This adds up when the elderly can no longer keep up a checking account.
Even essential items you pick up for them and reimburse. This adds up when the elderly can no longer keep up a checking account.
Popular
Back to top
Follow TigerDroppings for LSU Football News