What to do with assests to benefit/protect disabled son.

[trishyj]

What is the name of your state? LA

My parents just became legally separated and have just split their stock. My mothers's stock is currently worth over 1 million dollars. She does not plan to ever cash the stock. She plans to live on the dividends. She is in her 70's and has a mentally disabled adult son.
What should she plan to do with the stocks so that it is always available to her son. He is on disability for mental illness and collects ssi. Would all of his benefits end if he owned a million dollars worth of stock? Should it be put in his name or a trust?

Not sure where to begin with her assests-stocks and cash. She has three other kids. I am the closest to her and want to help her get organized. I know we need an attorney, but am just tying to get an idea of what to expect.
Thank you!

 

[colourfastt]

What is the name of your state? LA

My parents just became legally separated and have just split their stock. My mothers's stock is currently worth over 1 million dollars. She does not plan to ever cash the stock. She plans to live on the dividends. She is in her 70's and has a mentally disabled adult son.
What should she plan to do with the stocks so that it is always available to her son. He is on disability for mental illness and collects ssi. Would all of his benefits end if he owned a million dollars worth of stock? Should it be put in his name or a trust?

Not sure where to begin with her assests-stocks and cash. She has three other kids. I am the closest to her and want to help her get organized. I know we need an attorney, but am just tying to get an idea of what to expect.
Thank you!

In this case, LA has forced heirship. The disabled child will automatically received by law what's called a forced portion.

What she needs to do is visit with either an attorney or notary in LA who is very familiar with estate planning issues, especially when forced heirship is involved. Only use the notary if your mother knows what she wants to do, as a notary cannot give legal advice. Otherwise, schedule an appointment with an attorney.

 

[trishyj]

Did I mention....

she is still legally married to my dad in MD. Does that mean at her death (if he is still alive) that all of her assests will go to him. Can she will it to go where she wants to. He is unstable (in my opinion) and blowing money dating women overseas. While I have let go of what he does with him money, I am concerned about him receiving my mom's money and not using it responsibly for my brother.
Thanks!

 

[colourfastt]

she is still legally married to my dad in MD. Does that mean at her death (if he is still alive) that all of her assests will go to him. Can she will it to go where she wants to. He is unstable (in my opinion) and blowing money dating women overseas. While I have let go of what he does with him money, I am concerned about him receiving my mom's money and not using it responsibly for my brother.
Thanks!

You really need an attorney to sort this out because you're going to have a conflict of laws, and add to that Louisiana's community property statutes and the forced heirship in the Civil Code and the Code of Civil Procedure.

 

[lwpat]

Her husband will be able to claim a share of her estate. Likewise she will be able to claim part of his. What you need for the son is a "special needs" trust and she should consult immediately with an elder care attorney. The laws have recently changed with the DRA of 2005 so check the NAELA website for a list of attorneys in your area.