Commented on a discussion 4/30/2009 at 4:29 pm
Raerod,
Yes, it would be wise to get an attorney. The attorney (in the same state as your parents) can help them establish a trust to help protect the assets. Additionally, the attorney c
...Read MoreRaerod,
Yes, it would be wise to get an attorney. The attorney (in the same state as your parents) can help them establish a trust to help protect the assets. Additionally, the attorney can help you establish the proper powers-of-attorney such that there are reasonable courses of action for the utilization of your parents money.
A potential list of problems could come up by your sibling putting the money into their child's account. First, if the child is a minor good luck getting the money out of the child's account -- who's going to pay their bills when this happens. Second, depending on how much money we are talking about it would be necessary for your parents to file a gift tax return to avoid the IRS requiring that your parents pay gift tax on moving the money to the child -- if we are talking about a decent amount of money your parents would be using up their lifetime exemption for gifts.
Finally, Raerod, the best suggestion might be to setup a family meeting with you, your parents and your sibling(s) to discuss what is going on and determine what the best course of action is for everybody involved. Your sibling may have the best intention at heart.
Good Luck!
Bryan Craig Wisda, CFP(r)