Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A lot of the spousal is dependent on that persons work history and benefits. This is all a lot more easy if each spouse has considerable benefits. There are advantages to having lived and worked I'm high income areas. When to take SS can be a consideration because it will impact income streams at that point and how much if any more when all things combined is needed.
Oh, so that higher return rate on CDs with beneficiaries (POD's) would only be for those accounts transferred into a trust.
Well, in today's VERY LOW interest rate environment, parking hundreds of thousands /millions of dollars in MM/Savings/CD's doesn't make much sense.
But no you don't have to transfer these accounts into a formal "trust". You just add any potential beneficiaries as a POD to your bank account. Take some time to read those links from the FDIC as it's all outlined there and explained fairly well. I've found banks and financial institutions are NOT in the business of explaining things well and looking out for your best interests so you have to do it yourself. They aren't in the business of warning you of limiting your potential losses either.
I miss the days of the 5% to 6% money market accounts. Hopefully they return relatively soon (although the Fed has indicated we won't be seeing it for a while. )
Seems to be that there is a subtle and somewhat ethical distinction between 'shielding one's assets' by taking advantage of various tax or other legal loopholes ... and 'hiding one's assets' by pretending they do not exist.
Would you, for example, consider 'concealing' one's assets to protect them against a divorce settlement, lawsuit or legal attachment .... to be 'shielding' or 'hiding'? ... and/or to be ethical or unethical?
Similarly, 'hiding' one's assets so that one seems to lack the ability to pay for healthcare ... and thus, qualifies to have others pay for their healthcare --- is legal, but, seems just as unethical as anyone else taking advantage of loopholes to 'tap into the public dole' ... for which they would otherwise not be qualified.
...One unrelated matter: Another good way for those inclined to transfer money to their children is to remember that you can give a gift of up to $10,000 a year to a child without having to pay gift tax...
You're behind the times. The annual exemption is $14k/year now . Robyn
Like Mark said - the homestead laws vary from state to state (ours in Florida is *extremely* generous - which is why a lot of deadbeats move here to avoid their creditors). Another thing to keep in mind is who's entitled to keep the homestead exemption. Because a judgment is good for X years (IIRC - 20 in Florida). The homestead exemption lasts only for certain people entitled to claim it (again - IIRC - it's spouses - and minor dependent children in Florida - perhaps other people too). So spouses in Florida who are entitled to homestead exemptions (most of them) can pretty much shield their houses from creditors at least until they're dead. But they might run into trouble - if - for example - they had a judgment against them and wanted to take out something like a home equity loan or a new mortgage. Robyn
Every account you are allowed to designate beneficiaries for you should so you can avoid probate,
That is bad legal advice in general (although perhaps not as applied in certain states). Probate is a very useful tool. And not at all onerous or expensive in at least some states (including Florida). I can only speak of Florida because that's where I live and where I'm licensed to practice law. If you go through probate in Florida - you extinguish all potential claims to assets (like the one from the brother you didn't know you had ). Also - all claims from creditors (like the guy your parent rear-ended 3 years ago without telling you who now claims to have whiplash - as well as doctors and hospitals and funeral homes). Probate puts an end to everything in terms of the deceased. File closed.
And - at least here in Florida - it's fast. We probated my late FIL's estate in about 5 months (absolute minimum would be 3 months + 1 day because notice to creditors requires 3 months for making claims). And it's relatively cheap. There's no required (by statute) % of this that or the other thing for anyone (the Florida Bar has struck them down). Our court filing fees - plus hourly attorney fees - came to about $4k (and lawyer was billing $400/hour).
I realize there are other states with lots of ridiculous rules/costs that give certain people/entities a (sometimes ridiculous) % of this/that/the other thing. Which is just another reason why people with money prefer being Florida residents. I can tell you that the first thing we did after moving my late FIL here to a great SNF and stabilizing him after his stroke was changing his legal residence from NC to Florida (NC has a lot of stupid expensive onerous tax laws). Robyn
Not a sufficient reason to do it IMO - but a planning item to keep in mind when it might be useful/appropriate.
FWIW - I've done this is the last year or 2 with my father since I only do fixed income for him and have been stockpiling cash for when interest rates went up. Didn't feel like opening multiple high yield savings accounts - and cross-linking all of them - so I did the POD thing with the one account I have for him. Robyn
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
)
. Robyn
). Also - all claims from creditors (like the guy your parent rear-ended 3 years ago without telling you who now claims to have whiplash 
- as well as doctors and hospitals and funeral homes). Probate puts an end to everything in terms of the deceased. File closed.
