Need financial advice...inlaws came into some $$$

[KKB]

This is a very complicated subject and broad suggestions may cause more harm than good. You cant just "give away" the money without creating more problems. You really need to talk to someone you trust. Is there anyone you know who might use a financial planner that you would trust their opinion? Good luck to you.

Laws allow roughly $1M tax free (per person to any given person) in addition to the $20K/yr. limit. They simply need documentation.

 

[KKB]

It is a small enough amount of money that they should be able to manage it themselves, if only to purchase some CDs or a fund from Vanguard.

You could also post your question on http://www.bogleheads.org/ and you will get lots of experienced advice. I would do this before anything else. The last thing I would do is purchase any products from a bank or a financial planner as you will pay so much in fees and nothing is guaranteed.

It could easily be invested wisely to care for them for the rest of their lives--OR they could fritter it away, remarkably quickly.
It is VERY important that an attorney & financial planner be consulted to do this properly.
I think of my loser aunt who has frittered away tens of thousands over the years....
I think of the article on MSN last week about the family that inherited about $10M 10 year ago & are BROKE--fools spent $5M renovating a house!!? (and another $2.5M on other homes...lavish cars, vacations...$10M SOUNDS like a lot, but not when you spend like that!) These were smart educated people--HUH? Sad...
Sounds like you have your head on straight & your family wants to do the right thing. Get your good advice & good luck!

 

[jgates]

Don't just assume you can gift - states such as Wisconsin have long term requirements (5 years?) before gifting money is safe from nursing home, etc. So yes, contact an attorney that specializes in it. That same commission hounding planner here also keeps getting people to sign things in the hospital telling them it will protect them before they go into the nursing home the next day. It doesn't because of the time limitations the state has in place. Yet he gets a commission pushing that product on them. That's why I only deal with the one I trust - always compare.