Suppose a spouse is about to enter a nursing home and spousal resources are $800,000.00 in cash. A potential plan would be to transfer the $800,000.00 to a reliable child. Such child would use the funds on the transferor who enters the nursing home.
The will of the child would be a discretionary trust amongst the remaining parent, the child and other children. If the transferor enters a nursing home within five years, the portion of the $800,000.00 are spent until 60 months after the transfer. If the transferor goes into a nursing home after five years, any remaining monies are saved for the family. The transferee child would use any excess monies on the second parent if such parent enters a nursing home. If the second parent does not enter a nursing home, and then passes away, the child can distribute the monies to him/herself and the remaining children.
If the transferee predeceases the second parent, the funds would go to a testamentary trust. If a child or the remaining parent then enters the nursing home, a kick-out to the other relatives would not be a transfer (see Post 85).
Disclaimer: This article does not constitute legal advice and each person may have unique facts for which legal consultation may be necessary.
© June 2011, Post 150
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
We look forward to your comments and encourage you to comment often.