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Life Insurance Payout
Posted on 4/9/26 at 12:17 pm
Posted on 4/9/26 at 12:17 pm
Long story short, my mom passed away a few weeks ago after a long battle with cancer. My dad who now lives with me because of his own health issues was the beneficiary of her life insurance policy. After funeral expenses and clearing up the very few debts my mom had, he has just over 100k in cash remaining from the payout.. In addition to that he receives approximately 4k a month in VA and social security benefits. He's 76 and debt free other than a few bills that total around 500 dollars a month..
what is the best way to protect his money for him, so that it's there to cover any unexpected expenses, or care that might arise in his final years? Should I move it to a high yield savings account or into a money market account or should I take a different approach?
what is the best way to protect his money for him, so that it's there to cover any unexpected expenses, or care that might arise in his final years? Should I move it to a high yield savings account or into a money market account or should I take a different approach?
8
Posted on 4/9/26 at 12:55 pm to Blizzard of Chizz
How much do YOU want to manage it?
If not much, park it in a HYSA or keep buying CDs.
If not much, park it in a HYSA or keep buying CDs.
Posted on 4/9/26 at 1:04 pm to Blizzard of Chizz
Not to add on to the somberness of one passing away, but you said your dad has his own life issues. Are you thinking it's a short time window until his passing, or is it manageable where you think he still has a 10-15+ year window remaining.
Do you anticipate needing all $100K for him? Will what's left become yours at some point?
I would get with an advisor to map out whatever time frame you think he has left, respectfully, and manage the $100K accordingly. Put the amount that is for sure going to be needed into a HYSA or whatever other safe parking account is suggested and let it grow conservatively without risk of downside.
Then the remaining amount put into an index fund and let it ride for when it comes time you need it. You can handle market volatility and over time it will earn more than sitting in a HYSA or similar approach.
Do you anticipate needing all $100K for him? Will what's left become yours at some point?
I would get with an advisor to map out whatever time frame you think he has left, respectfully, and manage the $100K accordingly. Put the amount that is for sure going to be needed into a HYSA or whatever other safe parking account is suggested and let it grow conservatively without risk of downside.
Then the remaining amount put into an index fund and let it ride for when it comes time you need it. You can handle market volatility and over time it will earn more than sitting in a HYSA or similar approach.
Posted on 4/9/26 at 1:06 pm to Blizzard of Chizz
quote:
Should I move it to a high yield savings account or into a money market account
Would definitely do this in the interim.
You should consider keeping a reasonable amount in high yield savings type of accounts. investing the difference in an appropriate portfolio that balances your risk tolerance with a 5-10 year time horizon - or whatever is most appropriate for your dad’s situation. If he has multiple heirs consider their financial situation too.
Posted on 4/9/26 at 1:26 pm to Snoopy04
quote:
Not to add on to the somberness of one passing away, but you said your dad has his own life issues. Are you thinking it's a short time window until his passing, or is it manageable where you think he still has a 10-15+ year window remaining.
My dad has both MDS and Crohn’s disease. At his very worst he was down to 95lbs. Currently he’s back up to 115 and climbing with his appetite really improving and just overall better treatment. If you’d asked me at the first of the year I’d say it would be a miracle if he reached June, but now I’m much more optimistic. Certainly anything can change, but I’m thinking long term 5 to 10 years.
Posted on 4/9/26 at 1:35 pm to Snoopy04
quote:
Will what's left become yours at some point?
I have 3 brothers, so whatever remaining balance is left would be divided between us. Whatever I do, I have to do what’s best for him. I figure if I approach if from the standpoint of simply trying to maximizing the amount that we split after he passes, then I’m not acting in his best interest.
Posted on 4/9/26 at 2:18 pm to Blizzard of Chizz
go spend it on a whole term life insurance policy on him. name you as beneficiary. bypassing a lot of inheritance tax issues.
Posted on 4/9/26 at 2:30 pm to Blizzard of Chizz
Money Market, Treasuries, short term fixed annuity. Only three I can think are safe, short to shorter term, income producing.
Posted on 4/9/26 at 2:33 pm to Blizzard of Chizz
quote:
I figure if I approach if from the standpoint of simply trying to maximizing the amount that we split after he passes, then I’m not acting in his best interest.
I agree with that. I'd still get with an advisor if the situation is going to drill a hole in your brain. Otherwise, stick it in the HYSA or similar account for safe growth and reevaluate annually. You haven't given the impression you're needing this $100K to turn into $500K. Use it to keep your dad as healthy and happy as possible. Most people don't have life insurance benefits for these situations so you are already way ahead of the curve in that regard.
Posted on 4/9/26 at 2:49 pm to Blizzard of Chizz
When I was in a similar situation (my dad died suddenly and my mom had stage IV cancer), I put mom’s money in a HYSA and short term CDs.
Posted on 4/9/26 at 4:15 pm to Blizzard of Chizz
If dad lives with you, his 48k a year is probably good for his needs and to feed some to any savings he already has.
If he’s able, get him to have some fun with at least a part of the 100k. A trip with his four boys or something.
If he’s able, get him to have some fun with at least a part of the 100k. A trip with his four boys or something.
Posted on 4/9/26 at 7:05 pm to Sus-Scrofa
Update will ASAP if n needed
Posted on 4/9/26 at 8:22 pm to Blizzard of Chizz
Get power of attorney. Put all the money in a HYSA. He lives with you. His time is short. Make sure he enjoys the time he has left. Try to make the account read $1 the day he dies.
Posted on 4/10/26 at 6:50 am to Chad504boy
First, what is a “whole term” life insurance policy? Second, he won’t have any estate tax issues unless the government suddenly changes the law from $15 million+ per individual to something much lower.
Posted on 4/10/26 at 10:36 am to Chad504boy
quote:
go spend it on a whole term life insurance policy
A what now?
Edit: nevermind, I just realized it was you who said this.
This post was edited on 4/10/26 at 10:37 am
Posted on 4/10/26 at 10:40 am to TDsngumbo
i guess i didn't mean to say term.
Posted on 4/10/26 at 10:42 am to Chad504boy
I crack up and immediately know I'm not selling jack shite every time my prospective insured tells me they want "dat whole term". I roll my eyes and immediately start looking at my calendar to figure out what's next.
"I want dat whole term inshowance because I'm gon be startin a bidness and I wanna pay fo it wit dat".
Sure, buddy.
"I want dat whole term inshowance because I'm gon be startin a bidness and I wanna pay fo it wit dat".
Sure, buddy.
This post was edited on 4/10/26 at 10:48 am
Posted on 4/10/26 at 10:47 am to TDsngumbo
quote:
I crack up and immediately know I'm not selling jack shite every time my prospective insured tells me they want "dat whole term". I roll my eyes and immediately start looking at my calendar to figure out what's next.
just quote me thats full coverage man.
Posted on 4/10/26 at 10:48 am to Chad504boy
Foo cuvage, main! Jus quote da foo cuvage
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