No. of Recommendations: 0
My girlfriend's parents are 60 and are now starting to think about long term care and estate planning.

They're not wealthy; they have a $200K house and maybe $50,000 in IRAs. While the laws are ever changing, we're not worried about inheritance taxes at this point. The issues are:

Qualifying for Medicaid someday- Should they give the house to their kids now, or put it in an irrevocable trust so they'll have the option of subsidized nursing home care in 20 years or so? The family is close and responsible, so letting the kids take ownership isn't an issue. But it does put the asset at risk if a child gets into financial trouble. I wonder what the chances are they'll even end up in a nursing home? My grandparents all lived in their houses till only a few days before they died. And I'd hate to see my parents in such an unpleasant place.

Estate Planning- Is a will enough, or is a living trust necessary? There are costs to probate, which the trust avoids, but then there are costs to the trust as well. Maybe the living trust is the answer to the Medicaid issue as well.

Any advice is welcome. Thanks.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.