Inheritance dilemma

[etwinchester]

Rental property doesn't have to be too much work & worry. You can always hire a rental management company. They do charge a fee but if her property would be a "hot rental", she'd still make PLENTY and it would be worth it.

 

[marthachick]

My plan is for the last check I ever write to bounce.

 

[barkley]

another thing to consider (and your mil should be looking at concerning her own current assets) is her medical coverage. you say she is receiving social security based on her deceased husband's disability (so i'm assuming she is now receiving survivor's benefits) and is probably in at least her early 60's. if this is the case she may be receiving or will receive her medical coverage under medicare.

should she have a catestrophic injury or illness that requires an extended nursing home stay (or uncovered medical treatment) there are huge limitations on what medicare will pay for-most people try NOT to be placed in "pure medicare" nursing facilities. in order for her to qualify for supplementary state medical care (in california we have medi-cal) she will have to pass an assett test. the assett tests look at both current and previously held monies (some states go back several years). so a cash gift that has been spent could still be counted against her and create ineligibility for medical assistance.

given her current situation (owning 2 properties) she would likely if put in the situation now would not qualify period (generaly only one property that the applicant intends to return to-even if that is physicaly impossible-is exempt).

i believe you mil needs to consult with an elder law attorney to stucture her current situation (many have financial advisors on staff who can help with budgets and the like). she may have placed herself in a situation (in buying the second house before the first sold) that given an medical emergency could result in her either having no access to needed medical coverage and requiring her to spend down her assetts-which in the case of recovery from a major medical issue may leave her with only the social security and whichever house she resides in.

i would also be concerned that in owning 2 homes, depending on how long she lets the one sit on the market how this will impact her tax wise (capital gains laws are impacted by residency in the structure). she may be holding out for a large offer that in waiting could be greatly reduced by the taxes she will face. so an elder law attorney who has some expertese in tax law may be advisable.

that said-i applaud the relative who actualy made provisions in their will for events in which a beneficiary had pre-deceased her. far too many people make a will and never take these issues into consideration leaving the family to "guess" their wishes.

 

[doubletrouble_vb]

A lot of you were pretty harsh with the DMIL. If it were me I'd actually be a bitconcerned. Is this financial flakiness a sign of medical problems? Aside from that in some areas a house worth $250,000 could be a very small house (I know cuz I sold one in 2004...it was a 2 bedroom house, 1200 sq ft.). If the other house hasn't sold in six months at $500,000 it isn't worth $500,000.

In any case I see that happily the DH made the decision which was the way it should have gone. His GM could have simply left her estate to charity so that there would be no $2 million to fight over for anyone..

 

[imsayin]

His GM could have simply left her estate to charity so that there would be no $2 million to fight over for anyone

I don't see it as a fight for the money. I see it as one person being greedy & irresponsible and expecting the other to cover for them. GM's will, IMO, was very fair to the MIL and all involved. MIL made a big mistake in counting on the $$ from GM. She obviously didn't know the terms of the will, and how could she know what the estate value would be in the end. GM could have lived in a nursing home for years, run up high medical bills, etc. and had very little left at her death.

 

[Cindi0511]

OP, it sounds like you have a great husband, and he's got a great wife. Congrats to both of you for thinking of each other in a stressful time such as this. Happy almost Valentine's Day to you both! Good luck with all your decisions.