I have always lived with little money and never used a lawyer until my mom left me some money. I am 74 , my husband is 78 and not in good health. The first thing I did was make a 3rd party trust for my disabled son and a family trust for part of the proceeds of my house when I die for the rest of my children.I don't know if this trust was a good idea but since the inheritance wasn't too much, I did not know how else to provide for my disabled son. I have now received another inheritance from another family member and all this money is making me anxious! I put the second inheritance in a money market account and I was told that I have to pay quarterly taxes on all this money but no one has told me how. My tax lady is no help. I only lived on Social Security before and hadn't even had to pay taxes for many years. I would like to know how to manage all this money, pay taxes etc. in a regular manner but I'm not sure who to go to about it. My broker for my stocks and money market is not very helpful explaining things or getting me to the right person. My tax lady either; I suspect being my age and so clueless about money is unbelievable. I called a CPA but they said all they do is yearly taxes and couldn't help much. The guy who made up the trusts costs an arm and a leg per hour just for some silly questions I have. Does anyone have some ideas of who to go to for basic questions? And can you suggest any questions I should be asking?I'm not sure if this forum is the right place to be asking these questions; if it's not just ignore me and I'll find another way to deal. Is someone called a financial advisor who I should call?
So if he has done this, there is a junior or even 2 juniors to him. They may be who you want to speak with. It would also be good as you have someone younger to deal as your FA / broker for your special needs situation you are doing for a younger family member. It maybe would be an easier generational passing of an account to someone more a contemporary,
I contacted the County Disabilities Dept. Because of my nephews physical disabilities, he was accepted into a State program. He can live on his own with some financial overseeing I do. The State pays for 70% of his rent. He has a coordinator who oversees the rest of nephews life. He has an aide once a week who can take him to appts and shopping. Does light housekeeping and help him with bathing if he wants it. It has taken a lot of responsibility off of me. If some thing happens to me, he has his coordinator.
The CFP board (Certified Financial Planner) has a website you can engage a "fee only" planner as well who doesn't sell products. You will also want to be sure that any additional funds you have received that you want to go to your disabled son are directed to his trust that you set up.
Just my opinion but you may want to find a new financial advisor who as Alva mentioned acts as a fiduciary instead of just a broker who only buys and sells. If that person doesn't have a strong referral network and can't explain things...
Also I wouldn't worry too much about the quarterlies. There is a safe harbor and generally you can start paying your quarterlies if needed the following year. It's doesn't sounds like there were retirement assets inherited and the dividends from the stocks would have to be pretty substantial to put you into quarterly territory. But definitely seek qualified tax advice.
It's overwhelming but take it slow.. 💞
I so hope the trust for your son was a special needs irrevocable trust OKed by Medicaid. Otherwise it maybe considered useable income and your son will not be entitled to any help, like foodstamps, rent help, and Medicaid.
And to your question, yes my son's special needs irrevocable trust was made by extremely competent lawyers recommended by the disability group I have been in touch with since my son's birth. They not only made up the trust, but filled us in and helped us get started on self-direction for him. It has been extremely helpful and was the only thing I really wanted to do with my mom's money. I was always afraid he would be left with nothing. It somewhat relieves the uncertainty of the future.
You don't give us any idea what you have but if you don't want to PLAY with investments, you can put, say a million, away with federal protection in CD accounts and earn a tidy amount years. If you wish to you can put a "POD" on each of the four CDs and it belongs to that person on your death.
Money isn't a problem unless you get "taken" by someone who has all the answers on how you can double it. Greed can cause you to lose everything. And investing SAFELY (give your age and lack of knowledge) can self insure you for your lifetime.).
Speak to your banker. DO not inVEST through your bank and play with stocks would be my advice, because to do this you need some knowledge. But ask for their recommendation of a GOOD fiduciary-based Financial Advisor who can give you good options. Meanwhile keep that money safely stashed in CDs, and congratulations on your windfall which can self-insure you for your lifetimes.
Think of it this way. ANYTHING you do in life requires that you LEARN. If you are going to have children you have to LEARN things, right? Well, you now have money. So you have to learn things. But until you do it is crucial to keep it safe. I don't know who you are/were seeing for all these "Trusts". I hope someone good, trustworthy and reliable. If that's the case, ask that attorney about a good financial advisor.
The thing I tell people about money is: "Remember, if this promise of interest sounds too high, it IS. Walk away. If this promise of doubling your money sounds too good to be true it IS too good to be true. Walk away." There are Licensed Fiduciaries out there who manage money and are paid by the hour to do so, whose goal is to protect money, not to MAKE money. They are paid by the hour to consult and they work with the courts to protect the money of people who do not have family POAs. They are known to all Elder Law Attorneys in your area because they are appointed through the courts.
I received stocks from my mom when she died that she had for many years and have been very stable. I didn't change a thing. The money from the sale of my brother's home, I put in a money market account on the advice of the stockbroker who had my mother's stocks and now mine, so I could withdraw some money if I needed to.
My tax lady never told me how to pay quarterly taxes although with only my mom's stocks last year, we didn't have to pay anything to the IRS. But one of my brothers told me that if I am not paying taxes quarterly this year (I just got my brother's money,) that I will be charged a fine at tax time. I want to do this right. I am also worried about the trusts; I know Medicaid has a 5 year lookback but I don't know if I can even use some money for charities. That depresses me. The lawyer we used for the trusts came highly recommended by a disability organization but trust laws are so confusing. He also charges $375.00 an hour for questions which seems absolutely outrageous to me but maybe I just never had money before and I should suck it up. My husband has dementia and can't help at all with these decisions which seem to me overwhelming. I am not as quick as I used to be either. I never even had charge of any of the money before my husband retired, so I feel kind of foolish. I guess I will look for a different tax lady and call the disability lawyer despite the price! Will a good fiduciary based financial advisor be helpful at this point or is it too late since my money is already in stocks and a money market account? I also need to know how to be able to use a small amount of this money each year without going up in a tax bracket. Is the fiduciary who I would ask about that? Thanks so very much for your help from a very confused lady.
Despite your hopeful words, the inheritances will not even in the best of circumstances keep me self insured for the rest of our lifetimes.
They are a trustworthy group and will give you good advice