Non-spousal joint tenancy of stock account?

[soupcxan]

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[Nords]

Have you checked into "Transfer On Death" (TOD)? It might avoid the creditor issue while keeping JTROS' benefits.

Speaking of the inevitable, another approach would be to give you the money outright (in gift increments, currently $11K/year). She probably knows that you'll spend the money on her if it's necessary.

 

[Martha]

Another problem with the joint account is that the son could get married, divorce, and the ex make a claim to money in the account.

I prefer Nords suggestion of a POD (payable on death) or TOD (transfer on death) account. Also, she should think about a power of attorney so someone can manage her money and pay her bills if something happens to disable her, because the POD account only gives the son rights to use the account if she dies. Another option is to transfer the account to a trust with her as trustee and the son as successor trustee.

Remember, I am not an estate planning lawyer.

Martha

 

[soupcxan]

Interesting ideas - thanks for the replies.

At what point does it make sense to spend a few thousand $ to hire an attorney to give advice on these matters?

 

[uncledrz]

Soup
Nords and Martha make a good point with the TOD or POD, if the institution accepts these designations.

Joint tenancy creates all sorts of problems -- creditors, divorce, loss of control and ownership.

Re: transfer to qualify for medicare. Medicare does not cover the nursing home costs, except for a limited period of skilled nursing home care in specific circumstances. Medicaid does, but there are a number of issues revolving around legality, morality of the divestiture on the one side, as well as the fact that nursing home care on the public dollar may not be the quality of care that is available on the private dollar.

My suggestion is to contact an estate planning attorney who specializes in elder law. The first meeting, to get answers to your specific questions, should not cost more than a few hundred dollars, and may well be gratis.

 

[Mountain_Mike]

I was a joint tenant on my dad's accounts, and it sure made things easier at the end. I was able to carry out all his financial transactions, and avoid probate (though a living trust).