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Dad's finances- just asking for thoughts .. things I have missed

April 12th, 2016 at 01:50 pm

HI all]

Just some questions here and throwing them to the group

Dad has approximately $632k
He is 76 and in a Memory Care center
Costs average $7100-$7200 a month. They increase every year (have not seen the first year increase)
He has no other real costs (misc here and there)
Netting his ss, medicare and this facility cost he has a negative cash flow of $6300 a month

I am the power of attorney for finances and medical

His funds are making less than 1% right now and I made the decision not to invest them at all so they just sit. I did this because I am not sure Dad has alot of time left (alzheimers) though he might.. unclear. Average stay where he is at is 2 years and the facility felt that was a good estimate. unclear.. he was declining steadily. recently seems plateaued?

All funds are in trust (3 kids as beneficiiary)
IRA has 3 kids as beneficiary

I take the RMD each year and then every so often replenish his normal checking account with $30k

Any suggestions for other things I should be doing with the money

Dad does not have long term care insurance

Posted in Musings | 4 Comments »

4 Responses to “Dad's finances- just asking for thoughts .. things I have missed”

  1. Carol Says:
    April 12th, 2016 at 08:49 pm 1460494190
    1460494190

    Maybe leave 2-3 years worth of expenses where the money is now and do the rest in a ladder of CDs. I don't think you can be riskier than that. (and I don't know that you will make enough to make it worth the hassle.)
    Alzheimer's is a progressive disease but his plateau may come from consistent food etc.etc.Some elders living alone don't take care of themselves.(imho)

  2. PatientSaver Says:
    April 13th, 2016 at 12:04 am 1460505874
    1460505874

    The funds being in a trust means they are protected for the heirs, is that correct?

    If the near term future is uncertain, I guess an online money market making about .90% would be appropriate.

    You could prepay the funeral costs now. It's a difficult thing to think about, but it's much easier if you can do it now, with a clear mind, than after your dad passes, under duress and not thinking clearly. There's a fair amount of details to be decided on for these things; things like an obituary, what will be printed on the monument, and other details that you will want to address in a thoughtful and caring manner, which is best done before death.

  3. Rachael777 Says:
    April 14th, 2016 at 10:32 pm 1460673142
    1460673142

    Thanks for the advice. Actually Dad wants to be cremated.. no funeral but never though of doing the obituary first. I DID think of CD ladders but at the time felt it was not worth it. Let me look into rates again. Money right now IS in a Money market at Fidelity earning very little. I could move it to Barclays or other higher value savings account but the money being in a trust makes it very cumbersome and some commpanies do not even set up trust accounts like that and if I pull it out of the trust it is messier after death.. currently all money in the trust just passes down no probate. Maybe I need to talk to elder law attorney ( have a friend who is one). and ask him about the impact of pulliing $ out of trust.

  4. PatientSaver Says:
    April 15th, 2016 at 11:00 am 1460718025
    1460718025

    Sorry, Rachael, I didn't mean to suggest you take the money out of the trust. I don't think you should do that becus as you said, it bypasses probate upon death. I assumed that if you moved the money, you would set up another trust account. I don't have any experience with trusts, but I know the trust will save you a lot of time and countless rounds of paperwork if you had to probate anything.

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