[USER]

I would like to approach my dad about planning ahead. He is 72 and in good health. My sibling and I are the only heirs and are in our 30s. (Sibling rents a luxury apartment and I am a homeowner.)

Parents are divorced 15+ years and my dad kept the house we grew up in.

My dad has made mention of maybe thinking about some kind of estate plan, but doesn’t know where to start.

The house was built in the 1980s and is an ever-increasing desireable location outside of the city.

The house itself is relatively average, having had minimal updates but good general upkeep over the years.

In other words it looks cosmetically outdated for the most part, but the roof is pretty new, windows are all new, and it’s in excellent condition.

In a LCOL area, the house was built in 1985 for $82,000 but similar homes are selling there for at least $350,000 now.

My dad has refinanced several times, most recently in 2020. He still has a mortgage and always will as long as he’s there.

He doesn’t want to “downsize” as long as his health and mobility allow, because he’d pay double or more for a lesser quality home. He can easily maintain the property now.

So barring any kind of major health event, I expect him to remain in his house for awhile. He is not wealthy, but also is reasonably smart about money and I believe only has the mortgage and a car loan. I don’t think he has other unsecured debt.

If something were to happen to him, I want to ensure legally my sibling and I have some kind of rights to the house. Would this be a revocable trust?

I noticed recently his neighbors put their house in a family trust.

There is also the possibility that in the future either myself or my sibling would want to live in the house. I really like my house I already own, but my dad’s house is in a great location.

I don’t know my sibling’s long-term plans or desire to live in the home, but I think sibling would prefer to move elsewhere.

In that case one of us would need to buy out the other if we inherited the house.

[Carolyn]

I would highly recommend you try to move him into an assisted living or a CLLC community so he can spend some time doing some leisurely activities with people with common interests and help decide where all of the estate belongings are gonna go while he can still make decisions.

It’s not fun when they’re unable to make decisions due to a life event, but they still are not going to pass for some time.

Then you end up putting him in a nursing home.

[Bill]

Your dad should at minimum have a will and also double check that his ex wife isn’t still listed as beneficiary on any retirement or banking accounts.

If he doesn’t create a will, every state has laws that dictate how the estate will be split.

[Karen]

Your dad is ONLY 72 and this is his property and home, and these are his decisions to make. Period.

Maybe you can work on your own estate planning and talk about it casually with your dad but nothing he owns is owed to you or guaranteed to be yours in the future.

Your dad may need to sell the house to pay for his care in 10 years.

Be a good daughter now, but don’t spend your time worrying about assets that are not in your name.

If your dad hasn’t addressed his assets by age 80, then ask if he wants you to get him the names of a few good estate lawyers.

[Sonya]

My husband and I recently went through estate planning, and we did not need to do a trust in order to leave our assets to our children (though that is an option, but it wasn’t necessary for our situation).

Instead, our Wills stipulate that our 2 children will get 50% each of everything that we own.

If you pass without a Will, then your assets will be distributed according to your state’s intestacy laws.

This usually means assets go to the closest relatives in this order: spouse, children, parents, siblings, etc.

I’d suggest talking to an estate attorney to figure out what makes the most sense for your dad’s situation, but a simple Will seems sufficient IMO.

Best of luck!

[Kerri]

Is there a plan in place to pay for long term care or take care of him if he ends up needing it?

[Rebecca]

Just FYI: nobody has heirs until they die. Does your father have a will? That is probably more important than a trust.

Many people who put their house in a trust do so to protect it in case they need long-term care.

There is a 5 year look-back so it is something to do now if he wants to do it.

A trust also avoids probate, which can be laborious and expensive.

[Scott]

You are probably thinking of a Medicaid Asset Protection trust. Such things exist but the rules are very state specific.

Not an area for amateurs find an experienced elder care lawyer where Dad lives.

If there are assets to protect it is probably well worth a consult on the good bad and ugly. Kids and dad need eyes wide open.

If he needs LTC (take this the best way…I hope he does not) it would be useful to investigate what facilities in the area would qualify for admission directly on Medicaid.

I don’t think there is a one size fits all answer. However his options will be constrained.

In some areas Medicaid facilities are fine in others you would not send your worst enemy to one of them to live their final days.

[Lori]

Check your state laws, because he might want a revocable trust not just a will, to avoid probate.

He can specific 50/50 or whatever, and even specify that if one wants the house the other must buy them out at face value, or it would have to be sold and split.

Dad needs to think about all this. Get him a consultation with a trust attorney.

[Michelle]

This is entirely his decision. He needs to go sit with an estate lawyer.

The lawyer can explain his options so he can make a decision of his own.

He can always come to you & sibling with questions before he creates documents if he wants your opinions.

[Kathryn]

A Transfer on Death (TOD) will avoid the property going into probate should he still have it when he dies.

[Author]

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