Ok have a quick question for everyone. My parents are getting SSI and they are worried about losing their home and not being able to pass it down to their children. I realize they should have maybe taken it of their name before getting SSI but it’s to late for that. Is there any kind of trust or any thing they can do to help protect what they worked so hard to get. Thanks in advance and have a great day.
Well. actually yes there is it is called a title holding land trust which are revocable and beneficiary directed. There are 30 acutal benefits to using these type trusts in your investing. I can forward them to you if you email me.
Why are your parents worried about losing their home…??
This would be a very good solution for you since these trusts only hold real estate or real estate related assets only.
You can set up what is called a living trust and make that entity a beneficiary of your land trust which will provide very prudent asset protection for you.
As to passing the property down to your children you just make your children a beneficiary in the land trust and you will want to make the first heir or survivior your co-beneficiary or remainder agent in the trust.
These trusts provide asset protection and estate planning as well as avoiding probate.
If I can assist further my contact info is on my posting.
what you asking is actually a pretty complex question. When you say “protecting you parents assets” I assume that you are concerned about them as they get older and run into high medical bills that eat up their assets.
If so, then one thing to consider is long-term care insurance. While it is not cheap (couple of grand per year), if thye ever have to use it, the payback time is under 1 year. BTW, nursing home/skilled care can easily run >$50k/yr.
While using trusts will help to avoid probate issue and possible some estate taxes, it does not deal with the core issue of how well cared for/comfort do you want for your parents. Yes, the gov’t will pick up the tab if you have no assets, but I can tell you from experience that the level they will pay for is the bottom of the barrel (shared room in nursing home that is smaller than a college dorm room). Things like having your own telephone is not included and not paid for under gov’t benefits.
My grandmother spent 9 1/2 years in a nursing home and was completely broke the last few years she was alive. Things like “saving the house for the kids” really become a mute point when you are talking about the care and comfort of your family members.
Yes, planning is important, but just transfering the house into a trust is just a small part of estate and long-term care planning.
This is simple. The parents should place the property in a NARS land trust and make the children beneficiaries. When they pass there is no probate and the children automatically have the property.