Irrevocable Safe Harbor Or Not?
My father, in his late 80s, is considering marrying a lady who is not in the best physical health. I own property with him together, what implications are there when you place property into a safe harbor trust?
Social Security Tips, When Should I Withdraw?
My wife and I both are going to be eligible turning 62 this year, and she didn’t work near as much as I did, so her benefits are much reduced. I understand she can draw 50% of what my Social Security is. She turns 62 sooner than I do and will begin drawing from hers, and I would like to wait until I’m a little older to start drawing. Can she convert to 50% of my social security when I start drawing mine?
Yes. Right now she will not be able to take 50% of your social security. She gets 50% of your social security when you turn retirement age. She can collect 50% of her social security right away. When you decide to draw yours, she can switch over to the higher social security under your name.
If you wait all the way until 71, you will get a much higher check.
If you start the process of taking social security at age 62, and you take that money religiously and put it into a bank account as if you do not have it. At age 66, you can take that money plus interest, keep your interest, and give the money back to social security. This will increase your benefits as if you never took the money out in the first place. The problem with this course is that if you are working, it may become a little complicated.
Timeline for Executors?
My father passed away and I am the executor of the estate. I now have everything reduced to cash. My dad had some losses in his long-term brokerage account and the longer we leave the money in there, the more we will be recovering. How much time do I have to distribute everything and pull the money from the brokerage account?
Legally you are required to close the estate as swiftly as possible. By being the executor, you're an officer of the court. That means you are supposed to follow the rules the way they are written. They require the executor to act as swiftly as possible to allow the beneficiaries can get all the money. There is no time-line per se. I would guide my client in this particular situation would be to get all the children to agree and file the report to the court stating your reason for withholding the distribution of the funds.
Transfer My Title Now?
My husband died and I have two adult married daughters. I was wondering if they could be put on the house title with me now. If I suddenly need a nursing home or something, the state couldn't take my home. Or should I turn the title over to them now, and how long of a period do I have until they cannot come after the home, though I may have to give up the reduced property taxes.
If protecting the assets from uncovered long-term care costs is the primary motive, you cannot add their name and hope it is protected, you must give up the ownership of the home. I am always suspect of that because what happens if they are sued or have a divorce? It must be done very carefully. If you do not need long-term care assistance for the next 5 years, transferring the house out may trigger a 5 year penalty period in which you will not qualify for Medicaid assistance. You should check your other assets as well, because they may trigger other 5 year penalties if not handled at the same time. Once the children receive the assets, they may wish to place it in a safe harbor trust. This way if the kids are sued or get a divorce, at least your house assets may not come into play for their creditors.
