What steps can we take in order protect Mom's assets or prevent over taxing upon her death?

Question

She has a will and a trust.  She is 92 in nursing home. Daughter is power of attorney.

Douglas Tull · Answer

Not enough facts - you need to consult with an attorney (preferably an elder law attorney) to get the right direction.

James Frederick · Answer

Depending on circumstances, there may not be much. Your mother may not be able to do anything and the daughter, who could potentially act, is governed by fiduciary standards. Your best bet is to sit down with an estate planning attorney and review all of your facts and objectives. The attorney can recommend the best option.

Gerald Bagazinski · Answer

Consult with an elder law attorney. We can assist you with medicaid planning and estate planning.     If you have any questions, please contact me.

Victor Waid · Answer

There should be no tax owing federal if less than $5million, but could be some state income tax if the assets in the trust generated income. Obtain yourself a trust administration lawyer when your grandmother deceases, to advise the trustee on the administration of the trust. The power of attorney dies when grandmother dies. If she is receiving medical, then medical/medicare may have a lien upon the assets.

Dara J. Goldsmith · Answer

This is an exceptionally difficult and complex question. You should meet with an elder law attorney in your area.  It is easy to do more harm than good. Please consult with a qualified attorney before taking any actions.

Mark T. Peters · Answer

There is no estate tax in Idaho and the estate exemption for Federal taxes is $5,000,000.  If your grandmother has more than that, you need to talk with attorneys and accountants that specialize in large estates.

Edward Armstrong · Answer

Congress recently made permanent the exemptions to offset the estate tax, the gift tax and the generation skipping transfer taxes. If your mothers assets total less than $5 Million there won't be any federal estate tax. You might want to make sure that all of her assets are in her living trust or make sure that assets are held jointly with her children or are in a form that will "transfer on death" or "pay on death." This will reduce or eliminate the expenses associated with probate administration.

Christine James · Answer

Probably not a lot if she is 92, in a nursing home and has a POA. If she has capacity she may be able to do some sort of irrevocable instrument but it is doubtful. The good news is the estate tax exception is still 5.25M per person. Unless she is worth more than that, it is unlikely there will be tax liability.

John Brennan · Answer

You can engage, for your mother, and estate and trust attorney to review the present documents.  If she is still competent it is possible for her to change her will or trust, both to change in the distribution of her assets or to avoid adverse tax consequences. If she is not mentally competent, it is doubtful that there is anything that can be done at this point. You should see an attorney, provide the facts, and understand your and her situation.

Erven Nelson · Answer

You need to have the will and trust reviewed carefully in light of her assets and liabilities.  More estate planning may be necessary.

Norman Reitz · Answer

The trust can be made irrevocable.

Paul Waldron · Answer

Thank you for sharing your question. I can only comment on your case as far as the information you have provided and according to Utah law; as such, what I share here is cannot be used as legal advice for your particular situation but only legal information strictly limited to the facts you have shared.  If your mom's trust is fully funded with her assets, and her assets are under $1 million, it is unlikely there will be any tax upon her estate.  However, you have not provided whether or not she is receiving assistance from Medicaid, which may have a claim upon her trust assets depending on how long the trust has been in place.  I recommend that you consult with a qualified estate planning attorney.

Bernard H. Greenberg · Answer

Unless her assets exceed $5,240,000 there will be no federal estate taxes. If you are referring to medicaid issues you should immediately consult with an attorney specializing in elder law and medicaid issues.

Susan Wideman · Answer

If your concern is estate taxes, they do not apply until an estate exceeds 5.25 million dollars.  If you are talking about protection from Nursing home expenses, this is a complex subject for which you need to see an elder law attorney for specific advice.

Kathleen Delacy · Answer

Make sure all her assets are titled in the name of her trust.  Federal taxable exemption amount is $5M so if more than that, her power of attorney should start gifting.

Norman Green · Answer

No estate tax on death unless Mom's net worth is considerably over $5 million.

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What steps can we take in order protect Mom's assets or prevent over taxing upon her death?

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