Retirement Targets

[dmclone]

Where I work, they offer a lot of free workshops that are age dependent. A few years ago, I attended one that had to do with LTC options and learned a lot of valuable ideas. My biggest concern is that either me or my wife would have to go into LTC and it would drain our retirement savings. I took some high level notes but probably need to attend again now that it's been a few years.

1. Moneyguard NQ-Some kind of life insurance policy that has long term care. I don't remember the details but there was something about this product that I thought wouldn't be a good option for me.
2. CIDBAR wrapped into life insurance-Another one that didn't seem good to me.
3. Community spouse annuity (aka Medicaid Annuity)-This seemed like the best option to me. The Medicaid annuity provides a loophole to qualify one spouse for Medicaid while ensuring that the healthy spouse has a steady monthly income.

 

[BCClone]

My wife and I looked into long term care insurance last year before we retired. The cheapest we could find the premiums started at $500 a month, up to right at a $1000 a month. The cheaper plan last 10 years from the time you entered into assisted living. After running the numbers, we passed on the insurance and decided we would be better off putting $500 a month into a savings account to use down the road if we need too.
We are also in the process of setting up a trust to protect our assists in the future.

Can I ask what you are protecting your assets from?

 

[Cyched]

After being in the memory assisted facility I want to have the option for euthanasia

It's a mental and physical prison. I'd rather have a path with dignity and not go through what I saw.

Pillow over the head is quick and cost effective

 

[TitanClone]

After being in the memory assisted facility I want to have the option for euthanasia

It's a mental and physical prison. I'd rather have a path with dignity and not go through what I saw.

Couldn't agree more. Have a grandma dealing with dementia and as much as I want her to be around, if I got to the point she's at I'd want to be gone. When I visit for even just an hour or so the same conversation is repeated 5 times. She's still at home but likely should have been in a memory assisted facility years ago, that's another story.

 

[SEIOWA CLONE]

Can I ask what you are protecting your assets from?

Just trying to make it easier to pass everything to our children on our passing. I am currently dealing with the passing of my mother in July, lawyer fees with that will top of $9000 and it completely crazy how long everything takes. We currently are in 4 months of being able to nothing making sure that any claims against her estate are processed.

So, our kids were saying we needed to update our will and just make the process somewhat easier for them, we spoke to our lawyer a couple of weeks ago, cost of drawing up a new will was a couple hundred dollars, but she said a lot of people are doing trusts now, because it will be cheaper after you pass. According to her, most lawyers charge a percentage of your estate around 8 or 9%, which when we figured it out, it was going to be a lot cheaper for us to pay the couple grand now and have everything moved into the trust, then have our kids pay out the lawyer fees when we pass.
On our deaths, everything will immediately be transferred to our three children, without all the red tape of a will. At least that is the hope and what our lawyer is telling us.

 

[BCClone]

Just trying to make it easier to pass everything to our children on our passing. I am currently dealing with the passing of my mother in July, lawyer fees with that will top of $9000 and it completely crazy how long everything takes. We currently are in 4 months of being able to nothing making sure that any claims against her estate are processed.

So, our kids were saying we needed to update our will and just make the process somewhat easier for them, we spoke to our lawyer a couple of weeks ago, cost of drawing up a new will was a couple hundred dollars, but she said a lot of people are doing trusts now, because it will be cheaper after you pass. According to her, most lawyers charge a percentage of your estate around 8 or 9%, which when we figured it out, it was going to be a lot cheaper for us to pay the couple grand now and have everything moved into the trust, then have our kids pay out the lawyer fees when we pass.
On our deaths, everything will immediately be transferred to our three children, without all the red tape of a will. At least that is the hope and what our lawyer is telling us.

Most people do trusts so when they go into the care centers, they can’t have any assets touched and then go on Medicaid and that is why the care centers are so expensive.

 

[Mr.G.Spot]

Most people do trusts so when they go into the care centers, they can’t have any assets touched and then go on Medicaid and that is why the care centers are so expensive.

Also, tmk, it would have to be an irrevocable (vs revocable) trust and it would have to be created at least 180 days prior to Medicaid looking at your assets to be qualified for government aid.

These are big decisions on the type of trust. Once it goes irrevocable, unless you build in back doors, that money is gone. For example, if you can borrow from a irrevocable trust, the government, in all likelihood, will say to borrow from it before medicaid kicks in.

 

[SEIOWA CLONE]

Most people do trusts so when they go into the care centers, they can’t have any assets touched and then go on Medicaid and that is why the care centers are so expensive.

That was not our intention, but if that is the case, should we have to go into a care center in the future, I would guess that would be an added perk. Like I said before, we are setting up the trust for ease for our children and saving money down the road after our passing.

 

[CycloneSpinning]

Just trying to make it easier to pass everything to our children on our passing. I am currently dealing with the passing of my mother in July, lawyer fees with that will top of $9000 and it completely crazy how long everything takes. We currently are in 4 months of being able to nothing making sure that any claims against her estate are processed.

So, our kids were saying we needed to update our will and just make the process somewhat easier for them, we spoke to our lawyer a couple of weeks ago, cost of drawing up a new will was a couple hundred dollars, but she said a lot of people are doing trusts now, because it will be cheaper after you pass. According to her, most lawyers charge a percentage of your estate around 8 or 9%, which when we figured it out, it was going to be a lot cheaper for us to pay the couple grand now and have everything moved into the trust, then have our kids pay out the lawyer fees when we pass.
On our deaths, everything will immediately be transferred to our three children, without all the red tape of a will. At least that is the hope and what our lawyer is telling us.

I’ve heard this a number of times…and my wife’s parents essentially said the exact same thing. I’ll tell you that we would prefer they not stress so much about it. Your mom just passed, which is stressful enough without you having to re-work your financial plans. If you identified major holes, by all means fix those (when you’re ready). Otherwise I say enjoy life while you’re living it and let your kids enjoy being with you while you’re alive…and then have to do what you did for your mom when you die.

 

[Mr.G.Spot]

That was not our intention, but if that is the case, should we have to go into a care center in the future, I would guess that would be an added perk. Like I said before, we are setting up the trust for ease for our children and saving money down the road after our passing.

I am not sure the legal reasons for a trust, irrevocable or revocable, to make it easier to pass to the children. With a simple will, you can eliminate probate which is usually the hindrance to settling an estate.

 

[BCClone]

Also, tmk, it would have to be an irrevocable (vs revocable) trust and it would have to be created at least 180 days prior to Medicaid looking at your assets to be qualified for government aid.

These are big decisions on the type of trust. Once it goes irrevocable, unless you build in back doors, that money is gone. For example, if you can borrow from an irrevocable trust, the government, in all likelihood, will say to borrow from it before medicaid kicks in.

Yes, irrevocable. But it has to be 5 years, otherwise they can unwind it. It falls under gift rules (5 year look back) if the beneficiaries aren’t paying to gain what’s there.

 

[qwerty]

That was not our intention, but if that is the case, should we have to go into a care center in the future, I would guess that would be an added perk. Like I said before, we are setting up the trust for ease for our children and saving money down the road after our passing.

But then what if you never die? Bill Snyder has been around for a couple hundred years . . . .

 

[fsanford]

I am not sure the legal reasons for a trust, irrevocable or revocable, to make it easier to pass to the children. With a simple will, you can eliminate probate which is usually the hindrance to settling an estate.

Or people contesting a will. Does not sound like it in this case. But for some you would be surprised who can come out of the woodwork with their hand out.

My father's wife did a trust because he had a daughter who never called or visited for 35 years. When he passed she and her lawyer showed up and got shut down.

 

[SEIOWA CLONE]

I’ve heard this a number of times…and my wife’s parents essentially said the exact same thing. I’ll tell you that we would prefer they not stress so much about it. Your mom just passed, which is stressful enough without you having to re-work your financial plans. If you identified major holes, by all means fix those (when you’re ready). Otherwise I say enjoy life while you’re living it and let your kids enjoy being with you while you’re alive…and then have to do what you did for your mom when you die.

Thanks, but since I am going through all of this with my mom, we decided not to make our children have to do the same with us. Our goal originally was just to redo our wills which were 30 years old and were written when our children where small. Now they are grown, married and have children of their own, so it should be updated. When we spoke to our lawyer, she said that many people including her parents have moved to a trust for their estate, the main reason is cost after your death. Drawing up a new will would have cost us a couple hundred dollars, but she stated many lawyers today will charge a percent of the estate if there is just a will, which in my mother's case is costing us $9,000, ours would be well over double that. So, we figured it's a lot cheaper to spend the $2,000 now, then have our kids pay out the much larger number in the future. If having a trust shields our assists from nursing homes in the future, I can live with that also.

 

[BCClone]

Thanks, but since I am going through all of this with my mom, we decided not to make our children have to do the same with us. Our goal originally was just to redo our wills which were 30 years old and were written when our children where small. Now they are grown, married and have children of their own, so it should be updated. When we spoke to our lawyer, she said that many people including her parents have moved to a trust for their estate, the main reason is cost after your death. Drawing up a new will would have cost us a couple hundred dollars, but she stated many lawyers today will charge a percent of the estate if there is just a will, which in my mother's case is costing us $9,000, ours would be well over double that. So, we figured it's a lot cheaper to spend the $2,000 now, then have our kids pay out the much larger number in the future. If having a trust shields our assists from nursing homes in the future, I can live with that also.

With wills, search a little and find one who charges by the hour. I did and instead of the 2% cost the final number was around 0.33%. The county will be a mandatory 0.2% so I took the attorney portion from 1.8 to 0.13 by finding an hourly one and doing a chunk of the legwork myself.

 

[rpcyclone2013]

I am not sure the legal reasons for a trust, irrevocable or revocable, to make it easier to pass to the children. With a simple will, you can eliminate probate which is usually the hindrance to settling an estate.

I don't think that's true. Cyclone Fanatic's advertiser Hope Wood states this on her website. The reason to create a trust is to avoid probate. If your estate is high enough, it will save money. My lawyer friend says anything that goes through probate, they charge 2% of the value. So, if you have 1 million go through probate, that's 20,000 that the lawyer takes.
https://www.hopewoodjd.com/answers-... estate: A will does,value of the real estate.

 

[BCClone]

I don't think that's true. Cyclone Fanatic's advertiser Hope Wood states this on her website. The reason to create a trust is to avoid probate. If your estate is high enough, it will save money. My lawyer friend says anything that goes through probate, they charge 2% of the value. So, if you have 1 million go through probate, that's 20,000 that the lawyer takes.
https://www.hopewoodjd.com/answers-on-probate#:~:text=Real estate: A will does,value of the real estate.

.2%. You got the decimal in the wrong spot.

 

[rpcyclone2013]

.2%. You got the decimal in the wrong spot.

No, it's 2%. See the Regular Estate section in this Hope Wood link: https://www.hopewoodjd.com/problem-solver/how-much-does-a-probate-attorney-cost

 

[BCClone]

No, it's 2%. See the Regular Estate section in this Hope Wood link: https://www.hopewoodjd.com/problem-solver/how-much-does-a-probate-attorney-cost

The attorney can charge 2%. In that 2% they will handle the probate cost (which is the check I had to write to the county for my mom a couple years ago) of 0.2%.

If she says the probate judge charges 2%……….well, keep looking I would say.

 

[rpcyclone2013]

The attorney can charge 2%. In that 2% they will handle the probate cost (which is the check I had to write to the county for my mom a couple years ago) of 0.2%.

If she says the probate judge charges 2%……….well, keep looking I would say.

Got it. I was talking only about the lawyer fees, not the probate cost you were referring to.