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Old 03-29-2015, 06:32 AM
 
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I think there's an 'in between' to this question. Having a cache of money assures better care should you need it when/if you can't take care of yourself. When I lived in Florida I used to see elderly, nearly incapacitated and in wheel chairs, out to dinner with their nurse companion. See if one of your beloved heirs will swing by once a week to take you out to dinner at your favorite restaurant!
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Old 03-29-2015, 06:50 AM
 
Location: Tucson
446 posts, read 571,791 times
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I think that in this day and age you cannot count on having anything left over at the end to leave to anyone. My grandmother ended up spending my dad's inheritance in a long term care facility (she lived until 96) and my own parents are spending all their money on assisted living. There are no guarantees that there will be anything left at the end for anyone and no one should count on this unless you are a multi millionaire.
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Old 03-29-2015, 07:09 AM
 
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there certainly could be ways of leaving assets if you have anything worth passing on using the laws that were put in place to allow for it.

if the states din't want it to be that way they could easily change the laws allowing different methods to be used .

but even so , in many states estate attorneys are negotiating fees for nursing homes that fit within varied budgets.

it generally plays out the hardest hit are those that don't want to spend a dime seeing an estate attorney to try to protect things. that goes for middle class and the wealthy.
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Old 03-29-2015, 07:45 AM
 
Location: the Permian Basin
4,196 posts, read 3,085,457 times
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Quote:
Originally Posted by kauailover View Post
I hear a lot of people make plans ahead of time to leave their loved one's a nice inheritance. But I am in the camp of folks who like the idea of living it up in my retirement years even to the point of one day considering a reverse mortgage.

Maybe this is being stingy or maybe it's a desire for the loved one's to learn to be self sufficient. What's your thoughts on this?

One's retirement should be enjoyed and fulfilling, done responsibly.

If your heirs will use an inheritance responsibly and in a way that honors your memory, consider setting aside a certain amount for them to inherit, them give and spend the rest of your wealth as you choose. If they will not, then you should not leave anything to them. But, you may wish to leave something to your grandchildren, in the form of a trust, to be used for their college education.

Please avoid a reverse mortgage - if you need that much income aside from your retirement investments and/or pension, just sell your house.

There are lots of reasons to avoid a reverse mortgage, but one that most people don't consider is this: if you move out of your home for more than a year, the loan becomes due, and your income stops.


The Ugly Truth of Reverse Mortgages - daveramsey.com

The Worst Way to Fund Your Retirement - daveramsey.com
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Old 03-29-2015, 07:46 AM
 
Location: the Permian Basin
4,196 posts, read 3,085,457 times
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Quote:
Originally Posted by RobertaWa View Post
I think that in this day and age you cannot count on having anything left over at the end to leave to anyone. My grandmother ended up spending my dad's inheritance in a long term care facility (she lived until 96) and my own parents are spending all their money on assisted living. There are no guarantees that there will be anything left at the end for anyone and no one should count on this unless you are a multi millionaire.
These are examples of why older folks need to have a Long-Term Care Insurance policy in force.
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Old 03-29-2015, 07:50 AM
 
71,626 posts, read 71,751,865 times
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or at least some plan for dealing with it. most can't afford actual policy's but there are other means from linked benefit policies that are combination emergency money / long term care money and life insurance if not used for long term care to legal strategy's.
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Old 03-29-2015, 07:53 AM
 
71,626 posts, read 71,751,865 times
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Quote:
Originally Posted by Slowpoke_TX View Post
One's retirement should be enjoyed and fulfilling, done responsibly.

If your heirs will use an inheritance responsibly and in a way that honors your memory, consider setting aside a certain amount for them to inherit, them give and spend the rest of your wealth as you choose. If they will not, then you should not leave anything to them. But, you may wish to leave something to your grandchildren, in the form of a trust, to be used for their college education.

Please avoid a reverse mortgage - if you need that much income aside from your retirement investments and/or pension, just sell your house.

There are lots of reasons to avoid a reverse mortgage, but one that most people don't consider is this: if you move out of your home for more than a year, the loan becomes due, and your income stops.


The Ugly Truth of Reverse Mortgages - daveramsey.com

The Worst Way to Fund Your Retirement - daveramsey.com
many times you need to relocate. not being able to drive and having no public transportation system where you are can be a huge problem and you may not be able to stay put.


another problem is the majority of reverse mortgage receivers are now taking lump sum.

that reverse compounding interest can be killer.

even here in long island with the typical home worth more than 500k it can be quite painful.

On a $250,000 lump-sum in ten years the balance will climb to $465,841. Assuming 3% home price appreciation, that would leave about $72,000 in equity based on a home's $537,566 value. In 20 years, the loan balance would reach $868,031, exceeding the home's $722,444 value.

having to relocate can be a real issue . don't forget eventually many who live out of state want to move closer to kids and family if they need care.

there are just so many negatives to using your home as a piggy bank that we all could make a never ending list as life plays out. many who took these loans just have not reached the point where their location has been a problem health wise or family wise yet..
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Old 03-29-2015, 09:31 AM
 
Location: California
378 posts, read 361,323 times
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Thanks for your great responses!

I haven't studied up on reverse mortgages and I appreciate the info on pro's vs con's. The bankers always come out ahead in the end. I am re-thinking that option!

I have seen families get divided over wealth years before the beneficiaries of a estate ever comes due. It is the ugliest thing to witness, people fighting over what they think they should get when someone passes.

I am all for having a exit plan and it is the responsible thing to do. I have a simple will but plan on doing a trust eventually. What it leaves to whom is yet to be determined!
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Old 03-29-2015, 09:33 AM
 
Location: Anchored in Phoenix
1,942 posts, read 3,920,903 times
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I think you should spend and enjoy. In my case, for decades I have worked out and stayed reasonably away from obesity. And I tried eating right. But in my 50s, no kids, I am now on three prescriptions and I overreacted to one. The condition it's for will make me disabled in the long run if I do not use the prescription, and I don't know if there is a substitute without more severe potential side effects. No matter what you do, how great you are with nutrition, things can go wrong.

For me, I have saved up a lot of money but am working on deciding what to spend it on. I don't have expensive tastes other than wine.
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Old 03-29-2015, 09:40 AM
 
238 posts, read 544,573 times
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Our heirs can equally split 3 ways what's left. (We are a blended family so it's not as easy/clear cut and there were things that both DH and I each had to come to terms with). I definitely was not open to leaving a financial legacy while we did without in our later years. He had to perish that thought. I received some monies from my mother; I'm passing it onto only my blood child. I have savings bonds I started collecting since child was born, blood child will inherit those since she is either the owner or beneficiary. What DH and I decided to do was essentially earmark our primary residence as their inheritance to be sold and cashed in after our deaths. Everything else in our portfolio is ours to keep and spend as we wish. We/I will spend it wisely. Happy wife, happy life at this stage of our lives.
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