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justmeinsd

Should my mom put my name on her house, car or put it in a Living Trust with me as a Trustee?

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Hello, CB friends,

 

Long time no post. I hope all is well with you folks and that your credit issues are manageable and your general finances are improving.

 

My husband of 23 years still wants a divorce, although he's been saying that for a long time and hasn't actually filed. I'm honestly not sure how this will work out. I'm not going to fight him on it, but I'm not going to file, either.

 

I am currently in Florida visiting my mother whose husband of 46 years passed away a couple of weeks ago. He'd been sick for a really long time and he was in hospice, so while sad, it was more a relief than anything else, and he's left her with two paid-off houses and about $400,000 in combined back accounts and IRAs, a paid-for car, and Social Security income of about $1500 a month. She'll be okay financially.

 

Here's the question: We've spent the last couple of days getting all of the household accounts into her name only. The car insurance and house insurance, too. Those were easy. She's also made me a Paid-on-Death beneficiary of her bank accounts and one of the IRAs. The other IRA goes to my brother. Also pretty easy.

 

Next, though, she wants to put my name on the house and the car so that if something happens to her, I can just take possession. If she does, will these count as assets of mine? Will there be tax implications? Will it be considered an inheritance, and so not considered in the possible divorce settlement?

 

I'm way open to suggestions, and we're visiting her lawyer in the morning. I just want to get my head around this so I can ask intelligent questions.

 

Thanks, all.

 

Just Me in SD

Edited by justmeinsd

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:wave:

 

is the main goal to not add assets until the divorce is finalized?

 

IME trust questions are very specific to one's situation so I recommend talking to a good trust atty, or perhaps a few of them to find one you feel comfortable with.

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My maternal grandparents put their assets (ie home) in a living trust and made Mom the trustee. Basically so in case one of them would ever need to go into a nursing home, the nursing home couldn't attach liens to the home.

 

Agree with Hege (SHOCK!!) - find a good trusts attorney that can set everything up correctly.

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You will need to investigate this but most states don't allow divorcing spouses the right of half of the inheritance if it is kept separate from the joint accounts. Secondly an attorney can do a trust...... but with an estate under like 5 million there shouldn't be federal taxes. You might come out cheaper probating the will instead of doing the fancy stuff but most people do go ahead anyway and get a trust because if your mom goes into a nursing home the look back rules vary from 5-7 years.

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