My Mom has become concerned to make sure the probate court doesn't get involved when she passes. She set everything up so that when my Dad recently passed, probate didn't get a chunk of the estate..because there was no estate. Now she is determined to do this again.
The bank, and investment firm have no problem putting my name on the accounts with hers. As JT WROS. But, the credit union says they cannot do this by law.
But, the credit union has the best rate on CDs. No where else even comes close to those great rates. Mom is determined to figure out how to keep those CDs and keep the investment away from probate. Her answer is to transfer them into my name now.
I completely understand all the issues surrounding the possible future use of Medicaid. Since I would not consider the money mine to use...except if I ever have to use it to pay a NH on her behalf.
My concern is that ... God forbid something happen to me, this could really backfire.
I looked at the creation of a trust. Between the lawyers fees, and the ongoing cost of filing etc for trustee...within a couple years it ends up costing as much as probate court would have anyway.
Colorado court system doesn't make any of this easy.
Has anyone else tried to deal with this situation?
The credit union only wants a totten trust. This is totally unfriendly.
We are going to look at just moving the money to her other brokerage account, and setting up WROS.
As for the taxes....yeah..the gift tax is invoked above $14,000 per year. Which makes me wonder about the 5.3 million lifetime. HUH? How do you reconcile that. At a limit of $14,000 per year. You would have to live 378 years to give that much away...to one person...or. Give that much per year to 38 people every year for 10 years.....etc.
Anyway. Still looks like it is not doable with an uncooperative credit union.
So...back to brokerage. Looks like the rules are that it is only considered a gift if I ever use any part of it for my own benefit. Which I will not do. It is not the point of doing it.