re: 80 years old - 100k

quote:

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She could do her own kind of reverse mortgage too by selling her home to her kids in exchange for a note and the kids could pay her $300 a month against the note. When she dies they can sell the house.

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I see this as good advice. Because unless she has some sort of (really good) long term care insurance, a nursing home stay of less than 18 months will blow through her cash like a knife through butter... and then her house will be next. I believe the first 100 days or so would be covered by Medicare, assuming a doctor would sign her into rehab for that period.

But for wealth preservation, do what I.B. said and then pray that she has at least five years before she has any sort of long term care needs. Sell the house to the kids using a lifetime estate. Someone else can speak to the type of trust that might be used to protect the cash. When dealing with long term care, that can get (legally) tricky.