how do I protect mom's assets from greedy siblings?
OKWhat is the name of your state?
I live in Oklahoma and have a question regarding care for my elderly, recently widowed mother. She had relyed on my father to make all financial decisions during his life and now she really has no concept of money or how to protect her assets. My sister and her husband are without regard for her financial or otherwise well being and have begged and borrowed a lot of money from them over the years. Now that she is without my father's guidance, I am very afraid that they will drain her of her assets and essentially leave her in poverty with the financial burden falling on me since I look out for her.
What types of legal protections can I employ to protect my mother from my sister and her own ignorance & apathy?
She is frustrated with the situation and speaks with me about how she doesn't like my sister & her husband asking for money, but always is persuaded or manipulated to give and then feels bad about it later. I say this to give you some frame of reference to her intent and desire to stop handing the funds over and willingess to let me help.
Get the money out of her hands. You and she should meet with a good financial planner who can set up her funds in age-appropriate investments that are locked in and pay out to her a calculated monthly amount. That way, when sis and hubby come around she can honestly anwer- "oh, I can't get to that without selling a bond, or cashing in an annuity". MY mom has a monthly income from her CDs, utilities and other more secure investments plus a required amount of IRA divestment that comes in each month, in addition to her SS. But she touches very little principal herself.
If your mother is truly willing to let you help and she has never managed the business aspects of life, talk with her about establishing you as her Power of Attorney to handle all 'business' from this point forward. Remember to include a medical power of attorney when you do this.
A lot of widows and widowers forget to modify their wills after the death of their spouses. Somtimes, that is not a problem; for others, it leaves an ineffective will that ends up in arguments and with the true wishes not carried out. This would be a good time for your mother to review and revise her will, with her attorney.
I have a friend who also suggested the possibiliy of a non-revocable trust? My mother already has a living trust but this friend suggested moving things into a non-revocable trust that would still name my sister and myself as beneficiaries, but would somehow let me help my mother mangage her finances while protecting them?
Thanks again! Any help or information on what I should do is appreciated.
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