Question About Bankruptcy and $$ in the Bank

[Judique]

i know, its killing me!! i want to know! lol

there were so many different opinions in the thread - now i want to know who is RIGHT!

No one can be right until Life plays itself out.

The OP's mother may never make it to a nursing home.

The son may not ever file bankruptcy.

My question for all the experts: Is it possible to reverse this situation and keep the money (that was not meant for the sons use) from going to the bankrupcy court if bankrupcy is filed? Is there actually a legal way out of this?

 

[Uncle Remus]

No one can be right until Life plays itself out.

The OP's mother may never make it to a nursing home.

The son may not ever file bankruptcy.

My question for all the experts: Is it possible to reverse this situation and keep the money (that was not meant for the sons use) from going to the bankrupcy court if bankrupcy is filed? Is there actually a legal way out of this?

Sure, the OP could write a check for all the cash 'n keep the money in a jar buried in the back yard.

 

[maxiesmom]

No one can be right until Life plays itself out.

The OP's mother may never make it to a nursing home.

The son may not ever file bankruptcy.

My question for all the experts: Is it possible to reverse this situation and keep the money (that was not meant for the sons use) from going to the bankrupcy court if bankrupcy is filed? Is there actually a legal way out of this?

I highly doubt it. I know when my parents declared bankrupcy a few years ago, every single asset had to be listed. They were even asked if the dogs were pure-breads or not, as if they were they had to be listed as an asset! My family all lives in Michigan too so the laws would be the same as the ones the OP is running into.

 

[Acklander]

I highly doubt it. I know when my parents declared bankrupcy a few years ago, every single asset had to be listed. They were even asked if the dogs were pure-breads or not, as if they were they had to be listed as an asset! My family all lives in Michigan too so the laws would be the same as the ones the OP is running into.

This is my guess as well. He won't be allowed to file bankruptcy. I don't know what his financial situation is, but I suspect the bouncing around of the financial funds has left him without options.

 

[Judique]

This is my guess as well. He won't be allowed to file bankruptcy. I don't know what his financial situation is, but I suspect the bouncing around of the financial funds has left him without options.

I was hoping someone that has experience in the legal field would chime in.

We often get: I'm a CPA, or I'm an attorney or I work in the insurance field.

I find this quite interesting as I tied one of my real estate possessions (not my home and not to avoid paying for nursing homes or such) to one of children by putting their name on it with mine some time back. It's never been an issue.....yet.

 

[Pea-n-Me]

I was hoping someone that has experience in the legal field would chime in.

We often get: I'm a CPA, or I'm an attorney or I work in the insurance field.

I find this quite interesting as I tied one of my real estate possessions (not my home and not to avoid paying for nursing homes or such) to one of children by putting their name on it with mine some time back. It's never been an issue.....yet.

This won't give you an exact answer but it might give you a place to start some research. I probably don't have to say it's best to consult an attorney for exact answers (but even they're scratching their heads at some of the complexities of the laws these days).

https://docs.google.com/viewer?a=v&...ufSVZk&sig=AHIEtbQ0fmTEzx3kSF0S9eKisHsmafpN-g

http://www.ultratrust.com/medicaid-estate-planning.html

 

[Judique]

This won't give you an exact answer but it might give you a place to start some research. I probably don't have to say it's best to consult an attorney for exact answers (but even they're scratching their heads at some of the complexities of the laws these days).

https://docs.google.com/viewer?a=v&...ufSVZk&sig=AHIEtbQ0fmTEzx3kSF0S9eKisHsmafpN-g

http://www.ultratrust.com/medicaid-estate-planning.html

Thanks!

 

[SoPoSox]

As an estate planning/probate attorney, these posts have been painful to read - the general underlying issue of putting money in someone's name "for simplicity's" sake; the misinformation out there about estate and gift taxes; and recognizing the money that will be spent to unwind this whole thing! The federal estate tax system remains in flux and each state has essentially gone off on its own. Many general practitioners are no longer doing taxable estate planning as it is simply too complicated. If you take anything from these posts it should be this - call an attorney! Trust me, it will be a lot less expensive to do it right at the front end than to have to "fix" it (if that is even possible) on the back end. I have worked with many clients who were convinced they could do it on their own, only to find themselves in a difficult spot. It is no fun fixing problems that could have been easily avoided.

For the best estate planning attorneys in the country, go to actec.org (the American College of Trusts and Estates Attorneys - this is an invitation only organization for the best of the best estate planning attorneys in the country - and, no, I am NOT a member).

Best of luck MIGrandma.

 

[sookie]

the op has been around, hope she returns and updates.

 

[Janepod]

Here is why you don't do something for simplicity's sake:

My grandmother bought a second home at the Jersey Shore in the 1950s. Tiny place in Brick - if you know the area, you know that we are not talking Spring Lake or Mantoloking. She (widow) would use it in the summer with her sons (my dad and his brother.) As she got older, she lost interest and my dad and my uncle each bought their own beach houses, so she would visit there and let her cousins, nieces, nephews, etc. use it. About 10 years ago, one of her nieces was using it a lot (and to her credit, keeping it up, gardening, etc.) and asked to be added to the deed, supposedly because the cable company wouldn't let her order cable/internet for the house without her name being on the lease. RED FLAG. My lovely trusting grandmother added her to the deed, without telling her sons until much later.

Well, you can guess what happened: she moved in, moved her family in, moved her daughter's boyfriend in ... and won't leave. My grandmother died five years ago leaving the house (her share of it) to my dad and his brother. They want to sell it but the niece can't afford to buy them out. So basically everything is stuck and is a disaster. I don't know how they're going to settle it but it is causing so much bad blood on all sides.

DON'T DO THINGS FOR SIMPLICITY'S SAKE, EVEN WHEN IT'S FAMILY!!!

 

[mefordis]

Wow! My attorney is on there! FYI: for basic estate planning and trust setup, I believe we were charged $1800.

As an estate planning/probate attorney, these posts have been painful to read - the general underlying issue of putting money in someone's name "for simplicity's" sake; the misinformation out there about estate and gift taxes; and recognizing the money that will be spent to unwind this whole thing! The federal estate tax system remains in flux and each state has essentially gone off on its own. Many general practitioners are no longer doing taxable estate planning as it is simply too complicated. If you take anything from these posts it should be this - call an attorney! Trust me, it will be a lot less expensive to do it right at the front end than to have to "fix" it (if that is even possible) on the back end. I have worked with many clients who were convinced they could do it on their own, only to find themselves in a difficult spot. It is no fun fixing problems that could have been easily avoided.

For the best estate planning attorneys in the country, go to actec.org (the American College of Trusts and Estates Attorneys - this is an invitation only organization for the best of the best estate planning attorneys in the country - and, no, I am NOT a member).

Best of luck MIGrandma.

 

[runwad]

As an estate planning/probate attorney, these posts have been painful to read - the general underlying issue of putting money in someone's name "for simplicity's" sake; the misinformation out there about estate and gift taxes; and recognizing the money that will be spent to unwind this whole thing! The federal estate tax system remains in flux and each state has essentially gone off on its own. Many general practitioners are no longer doing taxable estate planning as it is simply too complicated. If you take anything from these posts it should be this - call an attorney! Trust me, it will be a lot less expensive to do it right at the front end than to have to "fix" it (if that is even possible) on the back end. I have worked with many clients who were convinced they could do it on their own, only to find themselves in a difficult spot. It is no fun fixing problems that could have been easily avoided.

For the best estate planning attorneys in the country, go to actec.org (the American College of Trusts and Estates Attorneys - this is an invitation only organization for the best of the best estate planning attorneys in the country - and, no, I am NOT a member).

Best of luck MIGrandma.

At what age should you do a trust? DH and I are in our mid 40's, I know it's costly and worry about doing it too young then having to pay to have it updated? Or is my logic faulty? Thanks

 

[*pixie*dust*]

At what age should you do a trust? DH and I are in our mid 40's, I know it's costly and worry about doing it too young then having to pay to have it updated? Or is my logic faulty? Thanks

I have had one since my son arrived. 40s is definately NOT too young. A trust not only sets up who will get your property when you pass, it also establishes medical directives, guardianship for minor children, power of attorney and many other things (depending on your needs).

 

[DizBelle]

Curious - what's the latest on this?

 

[Janepod]

My husband and I recently did this. Each of us had 3 sets of documents - will, living will (medical proxy, etc.) and guardianship of minor child. We were each charged $300 - so, $600 total for our family to be covered in any event.

We are in Fairfield County in a very expensive town. I imagine prices go down the further you get from here and NYC.

It is absolutely worth doing and has given us incredible peace of mind. If anything happened to us, a power struggle between his family and mine (regarding our son) will be avoided. (Pretty much!)

 

[*pixie*dust*]

OP, were you able to get some advice and resolution?

 

[sookie]

I'm pretty sure that the op is just ignoring us now.