Mother is ill, need advice

[dsmilansky]

What is the name of your state (only U.S. law)? California

My mom suffers from severe bi-polar disorder as well as other physical difficulties that limit her ability to care for herself. At this point, my two brothers and I are fully aware that we will be taking care of her for the rest of her life (financially and physically). Recently, my parents - they are divorced - sold a piece of property in a foreign country and are splitting the profits. Since my mom currently lives with my grandparents and has no tangible need for the money, we have deemed it appropriate to establish a secure account or trust, which we want to access when we need to take care of her in the future. I should also mention that my mom has accrued a sizable amount of debt, but since she has no use for good credit, we do not see it fit that she pay it off. What is the best option for us to secure the money she received and prevent it from being taxed?

Thank you in advance.

 

[Kiawah]

Take the money, and pay off her debt.....so I don't have to pay for the debt in higher rates and taxes.

 

[dsmilansky]

Kiawah,

You will then have to pay for the government to take care of my mother via social support systems because we will not be able to financially support her. We are not going to pay the debt - it is highly inflated by interest from the credit companies.

 

[candg918]

Negotiate a settlement with the credit card companies.

 

[curb1]

Do what is morally and financially responsible and pay off the debt.

 

[tranquility]

google "fraudulent transfer" or "fraudulent conveyance" to find out why the plan is not possible.

 

[dsmilansky]

Ok, presuming that we pay off the debt, how can we protect the remaining money out of her reach to care for her in the future?