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It may be Dad's money, but it's Mom's future too. As for keeping money at home - one of my neighbors, very elderly, fell and broke her hip and after rehab returned home to find her stash of $100,000 cleared out. She had been very careful to let no one know she had that kind of money, much less that it was hidden at home, but someone figured it out.
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NOW!! ANSWER IS NOW....Get POA and send mom and pops on vacation or a day outing. Make a weekly outing for them, they are getting bored. Make it fun for them. If you can.
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Thank you all so much! Many things to consider. I will let you know the next part of this ongoing saga. Blessings ;-)
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The POA i got my parents to initial and sign has been a great help to me. They checked the boxes agreeing to let me make decisions as soon as they start not having the answers.
Have used it several times. Sold a house, cleaned it out, hired someone to go through everything, She rescued many pictures from 4 generations of family.
If mom had any money to worry about, I would go see a lawyer for advice. She is gradually using up the last few thousands of savings and then we are. Looking at medicaid in the next year. Still researching what I need to do. Heard on the radio today that Obama tagged a 57% task on money people leave to their kids.
You gotta get help putting it in a sheltered account where the gov. Can't take it from your family!!
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Now the Republicans have taken the House and Senate, we all should worry what the government might do.
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I would check on the accuracy of a 57% inheritance tax. I do not believe that this is a fact. I would appreciate a citation beyond "the radio". IRS regs seem to state that for the 2014 tax year, only estates in excess of 5 million dollars are required to file. I'm not sure that pertains to any of us.
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Babalou, they are trying to drop that to 1 mill. In this day and age 1 mill is not really very much when you consider it is total assets.
For example a small farm is well over 1 million when you consider land, buildings and equipment. This is a agri grab by the gov. Can you imagine a son having to come up with $500,000.00 to keep the land that he has worked on since he was small.
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Igloo, yes gold prices have been driven down pegged against the dollar and is definitely not a "natural" occuring economic cycle. everything is manipulated in every market these days. Especially with the devaluation of our currency.
That said Im still pleased with the 418% that I have gotten from my investment and on average about 37% a year beats any other investment market. I love the fact that the gov cant inflate my gains away also.
The MyIRA plan that O is offering at 2.2% doesnt even keep up with real inflation and you lose about 7% value of actual PPI (purchasing power) a year with it. Inflation is just another way that they try to punish savers. Its not gold that changes value for the last 5000 years but currencies that change purchasing power.
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PayPal, I have not seen those reports of anyone trying to drop taxable estates to one million dollars, recently. Again, a citation would be helpful, as I would like to be informed, rather than panicked uneccessessarily.
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Sorry, autocorrect scrambled your name!
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The authority that Panapal quotes is a financial blog that is described by mainstream media outlets as rife with conspiracy theories. Check out your financial facts before making or changing investments. If a parent wants to make what seems like an unwise financial move, I would find out from them what they are basing that on. I would enlist the help of a fee for service financial advisor or eldercare attorney, preferably one your parent already knows and trusts to advise on investments or changes in financial plan.

Is this joint money? Is mom's names on all accounts? I presume nothing can be changed without her consent? Would they agree to splitting their funds so Dad can do whatever foolish thing he wishes with his funds, preserving mom's in conservative investments or however she wants her part of the money to be looked after?
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"That’s right – while the federal estate tax exemption was set at $5,000,000 and the estate tax rate was set at 35% for the 2010 and 2011 tax years, and the exemption increased to $5,120,000 for 2012, on January 1, 2013 the exemption and rate are scheduled to revert back to the numbers that were in effect in 2001/2002 - meaning, as mentioned above, a $1,000,000 estate tax exemption and 55% estate tax rate."
wills.about/od/understandingestatetaxes/a/futureoftax.htm
I dont think it is fair to Mr. Durden to claim his site is a "conspiracy theory" blog without giving an example of what you are basing your accusation on. A citation would be helpful.
I have not run across "theories" in any of his articles and miss the good old day when all these events were still theories.
The MSM has been a farce since exposed in the 50's with Operation Mockingbird. I highly recommend that you do some research so as not to mislead others till it is to late to update their planning.
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January 2013 is over. I don't believe that the exemption went back to 1 million dollars, did it?
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CNN - MONEY Search Zero Hedge. I've said my piece. Everyone is entitled to their own opinion; I don't need to say anymore on this subject.
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Please go back and reread my post.
"Babalou, they are trying to drop that to 1 mill. " (previous page)
I have not researched this topic further because it doesnt apply to us. We have all hard assets in a trust set up by an Elder Law firm. I recommend everyone do their own research based on their individual circumstances.
Thanks,
Pana
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Babalou Im not trying to be argumentative but do believe that knowledge is power. Since you brought up the MSM I would like to give an example of what is going on in France this morning.
Do you not find the timing of this a bit curious? Washington gets caught dropping weapons to ISIS for the second time (the first was claimed to be a mistake) and McCain is caught crossing the border illegally for a pow wow with them, Hollande announces that all sanctions should be dropped against Russia and 2 days later we have a terrorist attack based on another social media cartoon. The 18 year old they claimed was with them has stepped up and said I have wittnesses that I wasnt even near Paris at the time.
Im watching the news and they seem to think that we should believe that it takes 4 helicopters, 100 armored military vehicles and 2000 heavily armed men to secure 2 men?
Theatrics! This is why the French people are flying signs saying "Not afraid" Most understand that this is meant to instill fear and arent buying it any more.
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Pan, since Republicans are presently the majority lawmakers and therefore make the rules regarding taxes on estates, and perhaps you fear the government (the Republicans--by definition) will raise our taxes, perhaps you should vote Democratic to save all but the TOO RICH with estates that normal people don't worry about ever having because they will never have that kind of wealth.
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There is no difference in the two party bank controlled system. The proof is nothing changes when there is a regime change. Our current occupier, Pulitzer Peace Prize winner ran on the campaign promise to know out the neocon military war complex under Bush and now brags that he is good at killing people with drones.
80% of the people hit by washingtons drone strikes are civilians but yet they expect us to believe that the recent terror attacks in France are because of a cartoon. That new Common Core curriculum seems to be working just as planned. : /
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It sounds awful to think of estates worth "only" a million would be taxed, but the country is like 18 trillion in debt. Its gotta be paid back, somehow. I would love to have a family farm to inherit, even if you have to take out a loan to pay the tax. If youre an unfortunate non-land owner, you can't go out and buy that farm for a mere $500, 000. Farmland is precious and getting scarcer all the time, its doing better than gold.
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Charmin: Things have been volatile since 2008 but you may wish to acknowledge to your dad that there have always been fear mongers to add panic to our lives. Explain that he has been on this earth long enough to know and hasn't fallen prey to this hype before? It's usually when they stop telling us things are going to crash that they do.
Fear seems to become more real and threatening when we age and are more vulnerable. If you can empathize with his concerns and tackle the finances together (possibly with some trustworthy assistance) then his fears will be diminished. I would suggest not allowing him to watch FOX news as they are the ultimate fear mongers.
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We are getting too many politics in the answers now. It goes back to the basics....convince Dad to set up a one hr consult with an elder care attorney for some advice on setting up a trust, so that both parents are protected when one of them needs more medical/long term care of some kind. Attorney will help him and Mom if she's able to understand, that having a POA, Healthcare directives, living will and trust set up ahead of time is well worth the money spent to safe guard assets and assure YOU have a helper from their firm when it comes to going through down the road Medicaid, VA applications for further assistance.

That is where you start to safeguard assets. If he wants some money in gold, there are MANY legitimate advisors out there who are warning against banks (put the cash he needs immediate access to in a credit union) and who also recommend that 10 to 25% of investment assets be in gold in one way or another. Gold is also not looked as a way to make money, but as a way to protect assets and have tradable assets should everything fail. The world wide situation is NOT good...no matter the politics. And our government is NOT necessarily the sweet little wonderful organization that most average Americans think it is. All countries are in a downward spiral economically and all countries, including ours, are playing dirty games, trying to keep their countries above water. WE, in America, have more to lose because as soon as we lose the dollar as the recognized world currency, we can no longer print money freely to keep the numbers looking good. So from that perspective, our country is really a little more desperate than many of the others. And there IS a big push to force a change to which country control the world currency and a big push to drive the dollar down. It's all evil. It's all dirty. And it doesn't really matter the politics or 'sides' in this matter. Very few are trying to fix anything in a moral, ethical manner. You have to safe guard your own little part of the world where ever you are! And, for many of us, get a lot closer to GOD.
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Samara, families have worked hard to earn and save that $1M+, and this amount doesn't buy what it did years ago. Various kinds of taxes have been paid along the way. Even if we wanted to use it (which I don't) to pay down the $18T debt, I doubt we could even come close to doing so. If every man, woman, and child contributed to pay this debt, it would come to nearly $60K for each. Sorry, but with what I've diligently saved through hard work and sacrifice, and what I expect to inherit from my parents who also did likewise, I'll be able to live securely (not exorbitantly) in retirement. Having $1M or even $2M is not really being "rich" anymore. Therefore, I believe the $5M figure is a more suitable exemption point in this day and age.
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If you notice changes in your dad's cognitive functions, then he needs to see his physician. Keep a list of changes you see. As far as money goes, set him up with an elder law attorney, they will be able to discuss ways to 'protect' his assets. This may be a relief to him. On the other hand, if he has some dementia he may just be obsessed with money. My grandma thought she had something in her throat and wouldn't eat when she developed dementia; nothing wrong with her throat. I see people with dementia who fixate on something specific. Reassure your dad & continue to offer your support and assistance. When was his last checkup? If he hasn't been recently, he probably should go. You can contact the doctor ahead of time and let him/her know what symptoms you are seeing and express your concerns. Good luck
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