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re: Consolidating estate of parents in declining health
Posted on 5/7/13 at 8:17 am to MSTiger33
Posted on 5/7/13 at 8:17 am to MSTiger33
quote:I'm not entirely sure. MIL is a custom jeweler who works (worked) out of a workshop in the home. Lots of inventory (~$150-250K), but no building to vacate.
How is the business owned? Do your parents complete a Schedule C for your mom's business on their taxes?
2
Posted on 5/7/13 at 8:26 am to GarmischTiger
liquidating the business assets will be difficult. Basically need to account for every single thing that is owned under that "company".
Also make sure that your wife has power of attorney over all accounts to do with the business and the personal financials. Make sure once the mom dies the estate is succeeded to the father. Then once he passes he succeeds it to your wife as executor of the estate. Usually the estate will have an account that will take all remaining funds and settle outstanding debts from it. Whatever is left, that's what you guys take home. Uncle Sam will get his piece next tax season.
Also make sure that your wife has power of attorney over all accounts to do with the business and the personal financials. Make sure once the mom dies the estate is succeeded to the father. Then once he passes he succeeds it to your wife as executor of the estate. Usually the estate will have an account that will take all remaining funds and settle outstanding debts from it. Whatever is left, that's what you guys take home. Uncle Sam will get his piece next tax season.
Posted on 5/7/13 at 8:30 am to GarmischTiger
Check your parents latest tax returns. More than likely there should be a Schedule C for the business. If you liquidate the business then the accountant will account for any gain/loss on Schedule C for the next tax return.
In regards to your father, since his health is poor there is really no point to gifting his assets to qualify him for medicaid since most states have a five year look back period. Medical care is expensive and can eat up a person's assets fairly quickly.
Does your mom have a will and/or trust right now? If so, how are the assets owned (e.g. Jointly)? Is there any life insurance? If so, is there a life insurance trust?
In regards to your father, since his health is poor there is really no point to gifting his assets to qualify him for medicaid since most states have a five year look back period. Medical care is expensive and can eat up a person's assets fairly quickly.
Does your mom have a will and/or trust right now? If so, how are the assets owned (e.g. Jointly)? Is there any life insurance? If so, is there a life insurance trust?
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