Waiting on inheritance as a retirement plan. (pensions, marriage, respect)
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If an adult child has been a caregiver for at least 2 years prior to the parent going to a skilled nursing facility, I believe Medicaid will not take the house. This really has to be proven, however, and not be just a co-living situation.
If the house is deeded over to someone else at least 5 years before Medicaid is needed, that person then owns the house and Medicaid will not put a lien on it or demand its sale. Keep in mind, though, that a lawsuit, divorce or other situation involving the new owner (perhaps the adult child) could result in the loss of the home.
An elder lawyer really needs to be consulted as Medicaid can vary from state to state.
It's complicated and depends on state, but the bottom line is if the person is on medicaid, medicaid will recover assets from the estate upon death. If the person is not on medicaid, they will have to private pay for their care until all the money is gone and then probably sell the house to continue to pay for their care, until that money is gone. Unless the adult child is on the deed, the child gets nothing from the sale. And, of course, the medicaid 5 year look back period comes into play if adding someone to a deed.
An adult child, who is not a legal dependent of the NH patient, has no legal right to the house under medicaid recovery laws if the house is part of the probate estate.
My one piece of advice to anyone who is planning their future based on an inheritance.....plans change, things happen. Don't count on it!!!!
So two people I'm thinking about, they mostly just don't think about retirement at all. And when questioned, they say things like "I'll just move into my moms house when she dies" or "I'll probably die before then".
One of them really minds her health and I imagine will live a very long life, so I'm just baffled that she has this mentality. The other is pretty unhealthy and irresponsible in just about every way possible.
I know a couple of single people in their mid-40’s who have accumulated no assets and their retirement plan is to wait until their parents die and leaves them their assets/inheritance.
Have you ever heard of this or seen this?
Sure. One friend was riding on first husband's income and mother's promise of inheritance.
Forward to her age 45. Remarried to a lovely man who works for the Postal Service. Estranged from toxic mother. She had to hit the bricks and get a real job. They plan to retire to Pittsburgh for more affordable life than New England.
I was fortunate. My parents never had anything, never offered anything after age 18. I never heard of inheriting until I was well into adulthood. I did inquire about whether I could inherit my father's debts (answer, no).
I know a couple of single people in their mid-40’s who have accumulated no assets and their retirement plan is to wait until their parents die and leaves them their assets/inheritance.
Have you ever heard of this or seen this?
Yup. My aunts older son did just that. He married a woman who....to be blunt was ridden VERY hard and put away wet 15 years ago, they had a child and when his mother died (She held onto till 91!) he inherited the 8 houses she'd bought years ago...God only knows what his kid will be like...
So two people I'm thinking about, they mostly just don't think about retirement at all. And when questioned, they say things like "I'll just move into my moms house when she dies" or "I'll probably die before then".
One of them really minds her health and I imagine will live a very long life, so I'm just baffled that she has this mentality. The other is pretty unhealthy and irresponsible in just about every way possible.
I'd say its baffling but I've seen a large enough swath of the population that I'm not baffled by it, anymore than I'm baffled by 100 things people do that I wouldn't do, or enjoy that I don't enjoy.
My brother had that plan but we didn't inherit much after my mother died. He blew through it anyway and wound up homeless on a beach in Florida. I took the money and more than tripled it. That being said, it still wasn't enough to retire on.
I have an ex friend who made great money, yet, had nothing to show for it. She just inherited enough money to live comfortably the rest of her life. I predict that she will be broke in about three years. Some people do a lot with a little, and some people just never get it.
Unfortunately, there are plenty of dishonest people hovering around the elderly to try and get their piece - - including family, and often leading to elder neglect. Too much reliance on an inheritance, IMHO, potentially creates a real conflict of interest around care. If money is leftover after doing the right things for the individual, great.
I firmly think that anyone with money to leave should absolutely not just assume it goes to grown children. Set up a trust or in some way keep it from being the prize when goes downhill.
Abashed, I must admit I have always been glad my mother didn't have the proverbial pot to use. I might have been greedily tempted to not self-estrange and to treat her differently out of greed.
My 93-year-aunt has assets for her own help and care. She is determined that a greedy DIL not get anything. I pointed out that she cannot control what her son does with any inheritance, suggested that she set things up so the grandchildren would have a trust. As I pointed out, one son will buy guitars and the other will give it to his girlfriend. Reasonably enough, she just isn't getting it together in her failing health, and the assets (whatever is left) will go to her two sons for their own desires.
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