‘Our adult daughter is the beneficiary of our life insurance, power of attorney on all bank and investment accounts and joint tenant of our real estate.’ (Photo subjects are models.) – Getty Images/iStockphoto
My husband and I own a business, two houses and a commercial building on three parcels of real estate, about 56 acres. We have no debt – the real estate was paid off long ago, the business always pays on terms and we have a lot of money for retirement.
I am 80 and my wife is 72 years old. Our adult daughter is the beneficiary of our life insurance, has power of attorney in all of our bank and investment accounts, and is a joint tenant of our real estate. We have long term care insurance for my husband, but for various reasons, not for myself.
We are in good health. Indeed, we are better off than our 30-year-old workforce. There are no other family members we want to give money to and no organizations we want to support. We have communicated our wishes in advance – our daughter will have everything.
It’s always a bad idea for parents to add children to their assets during their lifetime, even if it’s a simple mistake. – Example of MarketWatch
You’ve done a lot to clear the way forward – but you’ve made one big mistake.
First, the bad news: It’s always a bad idea for parents to add children to their lives, even if it’s a simple mistake. In addition to giving away the title while your daughter is still alive, she loses the “step in basis.” Instead, you can release the land through a death transfer deed to avoid the judgment.
Unlike child-held assets, child-inherited assets are transferred by “Act on the basis” This means that capital gains are based on the current value of the property rather than the original purchase price. So if your daughter stays on the books of your assets, she won’t get this significant tax benefit on your share.
As I told this reader earlier this year, you can leave your assets to your daughter by naming them in a will or revocable trust, or through a will. If she inherits the property through one of these methods, she will get the rank based on the rank. It is more important to get this matter sorted out now than if you have a will or not.
Now for the good news. They have created a financial power of attorney. I believe you did this with the help of a lawyer. As a colleague of MarketWatch Beth Pinker suggestedit’s complicated. “You can read.”Prosecutor’s Diary. You may also want to reassess your investment portfolio from time to time, keeping in mind your good health.
You don’t mention anything superior. Health Care GuideIf you can’t make those decisions yourself, or if you want to take action, let your doctor know. You may want to list your wife as your health care proxy to make those decisions, and vice versa. Serious medical issues can put a strain on a marriage. As this couple found out.
as well as, Make sure you have a replacement For your wife on both the POA and health care directive. Review retirement savings benefits and survivorship benefits for your spouse, and examine the definitions of home care and assisted living care, plus schedule daily and monthly benefits in your long-term care policies.
Invest wisely in long-term care (LTC) insurance. (It sounds like you haven’t taken out shared policies.) But having an LTC policy can help ease the financial burden up front. Nursing-home care costs can vary significantly by type of care, state, and facility (depending on the situation).Up to 125,000 dollars per year).
There’s no harm in having a license, especially if you have non-tax-exempt assets such as automobiles or other assets tucked away in a safe deposit box. If you have a daughter, the intestacy rules will ensure that your estate passes to her regardless. In the meantime, talk to your attorney about your real estate holdings.
