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Sold the Family Homestead
Old 03-09-2007, 05:16 PM   #1
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Sold the Family Homestead

I was originally going to post this in "Other" but decided that this new area is more appropriate. Moderators -- feel free to move it.

The forum has been well informed on the continuing saga of me, DW and her parents who did not have the decency of my parents by just dying. We had a great triumph this week that I'd like to share in the form of good news and as a modern version of a "morality play."

My in-laws' "country home" purchased in 1952 (a scant year before DW was born) was sold this month. When we took over their finances last year I was "shocked and appalled" at how little a BGen and VP of a steel company had managed to accumulate in his lifetime. Most drunken sailors would do better -- ask Nords. Fortunately, their property happened to be in what has become an extremely fashionable part of Houston. Their house is a teardown but the property is very desirable.

We closed this week and turned their balance sheet into liquid assets. They easily have enough cash to survive the next 10 year which isn't likely since they are 86. My MIL has Parkinson's/Dementia/Broken Hip and is in constant pain. Even PETA would be outraged if someone had a dog in her condition and didn't put it to sleep. My FIL has Alzheimer's but is still able to do "many things" on his own. He is in assisted living since even whe DW was trying to stay with him she started to crack up.

We had some problems with the closing despite a solid POA. We managed to work through the issues and closing was only delayed a week. At times it looked like it wouldn't happen at all unless "they" were there to sign at closing. :P They would have never sold their home.

There were issues when FIL was informed of the sale. God knows why DW and a "helpful" neighbor found it necessary but he was. Through well crafted fiblets, they were resolved. Alzheimer's patients are volitile but ultimately calm, happy people. Few die of heart problems.

Word to the still heathy -- get the POA in place, look at how assets can be easily controlled when you can't control them and remember you are a mortal. My FIL only got the first one in place after several years of pressure.

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Re: Sold the Family Homestead
Old 03-09-2007, 05:56 PM   #2
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Re: Sold the Family Homestead

Well it sounds like you have some good news but still have your hands full.

Good Luck
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Re: Sold the Family Homestead
Old 03-10-2007, 04:19 PM   #3
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Re: Sold the Family Homestead

I'm glad the home sale got done, 2B. No one wants to be in your shoes but I suspect that most of us will be one way or another.

Quote:
Originally Posted by 2B
When we took over their finances last year I was "shocked and appalled" at how little a BGen and VP of a steel company had managed to accumulate in his lifetime.
Under the 2007 pay tables a retired O-7's military pension would be $92,591/year with a CPI COLA. They would've had to shell out $460/year for healthcare insurance. Anecdotally from older shipmates, military pensions & COLAs of the last couple decades have kept up with today's pensions. But people can research the old pay tables here.

However that COLA pension should have absorbed most of the shock of inflation. I wonder what they were spending it on... this doesn't bode very well for Guyton's "no go" years and the 6.2% SWR claims. Or maybe, like my PILs, their retirement portfolio was invested way too conservatively to survive inflation.

Quote:
Originally Posted by 2B
Most drunken sailors would do better -- ask Nords.
Well, it wasn't for lack of trying!
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Re: Sold the Family Homestead
Old 03-10-2007, 05:14 PM   #4
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Re: Sold the Family Homestead

Quote:
Originally Posted by 2B
Most drunken sailors would do better -- ask Nords.
I need to stop getting up at 3am. I read this and the first thing that came to mind was Nords in a skimpy little dress leaning on a lightpost calling out "hey sailor!"
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Re: Sold the Family Homestead
Old 03-11-2007, 06:15 AM   #5
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Re: Sold the Family Homestead

Quote:
Originally Posted by 2B
Word to the still heathy -- get the POA in place, look at how assets can be easily controlled when you can't control them and remember you are a mortal. My FIL only got the first one in place after several years of pressure.
I couldn't agree more. If you do not want to wind up in court to get guardianship... get a POA for Health and Finanace. Not to mention that if you go through the courts, you will need to submit accounting records to the court. This is a real hassle.

Hang in there and remember your DW is probably caught in the middle. Dealing with a chronic illness with a family member is extremely stressful.
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Re: Sold the Family Homestead
Old 03-11-2007, 02:59 PM   #6
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Re: Sold the Family Homestead

man, i only had half that to deal with and it almost crushed me. you are doing a great job 2b. good for you.
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Re: Sold the Family Homestead
Old 03-11-2007, 03:11 PM   #7
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Re: Sold the Family Homestead

Quote:
Originally Posted by Nords
I'm glad the home sale got done, 2B. No one wants to be in your shoes but I suspect that most of us will be one way or another.
Under the 2007 pay tables a retired O-7's military pension would be $92,591/year with a CPI COLA. They would've had to shell out $460/year for healthcare insurance. Anecdotally from older shipmates, military pensions & COLAs of the last couple decades have kept up with today's pensions. But people can research the old pay tables here.

However that COLA pension should have absorbed most of the shock of inflation. I wonder what they were spending it on... this doesn't bode very well for Guyton's "no go" years and the 6.2% SWR claims. Or maybe, like my PILs, their retirement portfolio was invested way too conservatively to survive inflation.
Well, it wasn't for lack of trying!
He retired in the late 70's from the reserves. The "star" was bestowed a few months before retirement so it was clearly a going away present. His military pension isn't anywhere near $92K but it is COLA'd. Even with SS everything comes to about $45K/yr. The company he was with changed hands several times before he was forced out at 67 in the mid-80's. He has a non-COLA's pension from this job but it's now almost nothing. Their USFHP heathcare from the DOD is a big savings. The drug copays are almost nothing for anything they get. They have no doctor or hospital copays.

I appears from his financial records that he received substantial lump sums during the last decade of his working career. They spent freely. His investments favored CD's and annuities. He had small amounts of a tax free bond fund and an international bond fund -- and I mean small. They were both load funds. His equity portion consisted entirely of his last employers stock and there wasn't all that much value there either. It has paid trivial dividends and performed like the S&P although not always in sync.

If it wan't for their house, DW and I would be moving them to a much less desireable facility.

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Re: Sold the Family Homestead
Old 03-11-2007, 03:13 PM   #8
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Re: Sold the Family Homestead

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Originally Posted by lazygood4nothinbum
man, i only had half that to deal with and it almost crushed me. you are doing a great job 2b. good for you.
Thanks for the compliment lazy but you took the hands on approach. There's no way we would have survived with just my FIL's Alzheimers'. They are a long way from being out of mind but they are almost always out of site.
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