End of Life Estate Planning

Sadly we brought my Father-in-Law home from the hospital on Sunday to begin in-home hospice care. Doctors are estimating 2 weeks. **** cancer.

Anyhow, I’d like to get some advice or perspective on how to help manage his estate. We have Power-of-attorney and a living will established.

He has two daughters and two granddaughters.

The house has about a $60k mortgage on it and is worth (my guess) about $125k. He has approximately $62k in savings. I’m not sure of any life insurance policies at this point. He has an older truck and a newer motorcycle (both with a lien). Probably not more than a couple thousand in equity between the two.

My wife and her sister have hatched a plan to “gift” the house to the oldest granddaughter. She would get a mortgage for $60k and effectively buy the house. I’m guessing the IRS will have some interest in this given the value of the home. I’d think someone will have to cover Capitol gains.

I’m thinking the entire estate should be moved into a trust where the two granddaughters are the beneficiaries and both daughters are trustees.

Or can we gift the granddaughters directly from the Grandfathers estate (bypassing children). Are there caps on this or pitfalls? One granddaughter is 24. The other granddaughter, my daughter, is 13.

Any input on how to proceed would be greatly appreciated.

You should be talking to an attorney who specializes in estate planning. It is likely that laws vary from state to state.

Seek the advice of an attorney. If you have legal insurance, you may be able to establish a trust at no cost, and they typically start at around $5k. Time is not on your side, sorry for the dilemma which you’re facing.

CobraBob said:

You should be talking to an attorney who specializes in estate planning. It is likely that laws vary from state to state.

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This. Is he capable of making his wishes known?

All the best to you OP. In home hospice takes courage most don't have.

Seek an elder law attorney in his state ASAP.

Get as many referrals as you can to feel comfortable before proceeding.

We're fortunate enough to have an excellent, local, elder law attorney that's got my family and relatives in a safe place.

Guys, thank you very much. We are getting referrals now.

Yes, ha can still make his wishes known. For much longer? Who knows.

This is probably not the place to get advice if he only has 2 weeks left of life. Attorney time, ASAP.

Attorney. Don’t ask this question here.

Side note: sorry you and your family is going through this. Cancer it truly awful.


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JPKII said:

Guys, thank you very much. We are getting referrals now.

Yes, ha can still make his wishes known. For much longer? Who knows.

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Make a list of all assets and liabilities. Ask how he wishes to dispose of the property. That will be a good head start for the attorney to draft a will.

A lawyer is a good idea if the executor of the will is thinking of not following exactly the expressed wishes of the deceased.

The last thing you need is to somehow set up a future family rift. Imagine the side that keeps the house putting it up for sale a week after everything is settled. They get half...or double what the executor estimated. One side or the other may now be upset.

This sounds like a fairly simple situation. Uncomplicated assets and few beneficiaries. Consider how the cost of legal advice or services like setting up trusts will offset any tax savings you are hoping to find. Selling assets, paying off debts and splitting net proceeds as per will is clean and transparent.

If the dollar numbers of either course of action are close strongly consider the action that will least risk future family harmony.

I wish you and your family strength as you go through this sad and difficult time.

Estate planning is not a DIY project. In my experience most of the DIY plans end up costing the family more to hire someone like me to fix the issues as best we can. However often things are so messed up by not understanding the ramifications of making legal moves that we can't achieve everything that was intended.

We (attorneys) make more money in fees on the DIY project fix after the fact than it would have cost to do it right the first time.

I'm glad that you decided to get some referrals. Make sure it is someone who spends the majority of their practice on estate planning matters. Those who dabble in it cause almost as many issues as the DIY people.

lOOKnGO said:

All the best to you OP. In home hospice takes courage most don't have.

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Perhaps his last selfish act.

Get moving. You do not want the house to end up in probate.

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Unfortunately going thru this now, my grandfather passed away. One family member is literally trying to take things out of the house. Its sad.

COBRA97SVT said:

Unfortunately going thru this now, my grandfather passed away. One family member is literally trying to take things out of the house. Its sad.

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Unfortunately this happens all the time. RIP