www.Bogleheads.org is a great place to ask this question.
SPIA annuities are the only way to go if you want to do an annuity. Make sure you actually understand the terms and how much of that money pays the insurance salesman's commission.
As POA for my mom, I sold her home and the equity she had from the sale went into a Trust. I made an appointment with an Elder Lawyer to have the Trust established and explained to me so that I know what rules to follow when pulling from the Trust to pay her bills. At that point she was in Assisted Living. She then advanced to memory care which is a lot more expensive. Once she burned through that money with her care, I once again visited the Elder Lawyer and he said she made too much to qualify for Medicaid, so we established a Miller Trust. I won't bore you with the details of that, but it is a pain in the butt to manage. I am constantly moving money around and paying for things out of her checking account at one bank and her Miller Trust at another, all while trying to follow the Medicaid rules so she doesn't get disqualified.
The bottom line is that your LO's situation medically and financially is always changing, and it is wise to look ahead a couple of steps to have a plan in place.
I'm not in the US so things may be different there but I was very pleased with the insurance based annuity I got for my mom, it paid a fixed amount every month and within days after her death the balance went directly to her heirs without having to go through probate. But please consult a certified financial planner or elder law attorney to go over all your options, especially keeping in mind the possible need for Medicaid in the future.
You are POA. If you don't know how to do this it is definitely time to see an elder law attorney and learn how to be POA because the keeping of good records and the management of money for taxes and etc is crucial. Your Mom's money pays for this expert help so do this at once.
Basically this is MOM'S money and it is crucial is goes into accounts or investments in MOM'S name with YOU as POA for check writing and so on. Crucial that you sign mom's name to all outgoing funds with your own name following it and addition of the words "as POA".
Do seek advice from a fiduciary or an attorney about how to operate legally as a POA. It is crucial you understand how to do your duty as it is a legal fiduciary duty held to the highest standards under the law. It is crucial to your mom's safety financially.
I asked this question to our financial advisor for momma when we sold her house before she went into assisted living. I was thinking about reinvesting and the financial advisor didn't seem to want to do that so I talked to my attorney and he advised purchasing a cd. Momma received $170,000.00 on her house after we paid off the remaining mortgage. I purchased a cd for $120,000.00 which earns almost $1,000.00 every three months and put $50,000.00 in her savings just in case I get sued from siblings and I need to hire an attorney to represent me. Thats another story.
www.Bogleheads.org is a great place to ask this question.
SPIA annuities are the only way to go if you want to do an annuity. Make sure you actually understand the terms and how much of that money pays the insurance salesman's commission.
The bottom line is that your LO's situation medically and financially is always changing, and it is wise to look ahead a couple of steps to have a plan in place.
Basically this is MOM'S money and it is crucial is goes into accounts or investments in MOM'S name with YOU as POA for check writing and so on. Crucial that you sign mom's name to all outgoing funds with your own name following it and addition of the words "as POA".
Do seek advice from a fiduciary or an attorney about how to operate legally as a POA. It is crucial you understand how to do your duty as it is a legal fiduciary duty held to the highest standards under the law. It is crucial to your mom's safety financially.