Parents- Life Insurance

[gisvc]

What is the name of your state? Missouri

I am 31 years old and my parents both have life insurance. Of course they have it set up to where if my father passes then my mother is 1st and just the opposite. But I am 2nd on both of them. If something happens to both of them at once then of course everything they own comes to me. My son gets SSI and they ask questions like are you on any life insurance policies or anything else that might be of value. Do I have to answer this yes even though I am 2nd on this stuff? I dont really own them now but I believe alot of their other stuff is in my name of course along with theirs. What should I do?

Thanks
GISVC

 

[somarco]

Sounds like your parents are concerned about taking care of your son if something should happen to you, which begs the question.

What steps have you taken to address the needs of your son? Have you made adequate financial arrangements? Have you drafted a valid will naming a guardian? Have you established or considered a trust to manage assets for the care of your son? Do you have adequate disability coverage?

 

[gisvc]

I believe my parents are concerned about all of us. They dont want any of their stuff they have worked hard for to go to the state. I have a brother and sister also that will benefit from everything not just me.

As far as my son, his needs are well taken care of. I put back money all the time for him and his future. If something was to happen to me he would be well taken care of. I do have a living will that states what should happen to him if I wasnt able to take care of him. My family is very supportive of me and my decision concerning him. I have pre-funeral arragments and everything for him. I am not concerned about getting my parents money they are the one's that are worried about not lossing all their stuff. I explained to the Social Security that if it came down to either getting SSI or giving up what I have then I wasnt concerned about the SSI. Its just right now its really hard for me to work because so many doctors appointments and things. I am not saying I am rich by no means! As anybody would say any and everything helps when you have a special needs child. He doesnt have any medical problems (heart) but he has alot of ear problems. I do have private insurance on him.

So instead of saying No its really YES!! No body is ever really ready to have something happen to them but they could have a plan.

Besides I was only asking a question not wanting to go into detail about my fanancial life.

GISVC

 

[somarco]

Why do you think your parents assets would pass to the state? Is long term care a consideration in the future? If so, if they lack the ability to pay, Medicaid will kick in and cover their expenses. Upon their death the state would seek to recapture the cost of their care from their assets.

There are ways to avoid this by advance planning . . .

I living will does not designate a guardian for your son if you are incapacitated.

Sounds like you, and your parents need to have some serious talks with an elder care attorney and an estate planning attorney.