Elderly relative hiding $$ in the freezer

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I agree with PPs that suggest that she start using the cash for daily expenses and not worry about the mortgage. If she really really wants to start paying down the mortgage, then she gives OP $5K or so at a time and OP sends a check to mortgage company and spends the cash.

But about the tax angle: if she really piled up this amount over a period of 20 years, that's $5K/year? Is her income even high enough for $5k/year to matter? Even so--bottom line--don't borrow trouble by doing big cash transactions. And OP, I'd use the phrase "asking for trouble" with her as you review her options.

Personally, I don't believe it's provable that she evaded taxes.And the amount is super small accumulated over many years, so IRS won't care much anyways.

She could have just taken money from her bank accounts (some people don't like keeping cash in banks, particular elderly or those who lost savings in developing countries bank collapses). And she kept the cash in the freezer. That was very typical in my former USSR country to cash your legal salary and hide savings at similar places at home. Under the mattress, cement into floor, in the toilet tank etc.

That is extremely unusual behavior among documented Americans who aren't engaged in shady activities.

Disagree. There are absolutely cultural Americans who engage in this type of behavior. Some due to age (older, maybe were children at or parents who went through Depression. Some is a ethnic distrust of institutions. I’m work with employee benefits and regularly hear of people who don’t participate in benefits 401k programs because of distrust of institutions or the stock market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:She's this fussy and she has a VARIABLE RATE mortgage? I'm not buying this.

Somebody might have assisted her with mortgage processing, I helped my elderly mom to get a car loan. It's all online nowadays. If she's so cash based, she probably doesn't use credit cards much for her daily expenses, so mortgage would be her only obligation.

I think OP should help with methods described above (just don't put her SSN on any transactions and keep them low under 10k).

Why would someone have assisted her in getting a variable rate mortgage when it was crystal-clear that rates would be rising? Still not buying it.

High interest rates don't stay long: 7/1 ARM is cheaper vs 30 years fixed. If someone expected to repay the mortgage in less than 7 years and knew about cash resources it's not unusual. So is unusual for elderly people to have cash instead of keeping money in banks. SS and Medicaid benefits eligibility is one explanation

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:She's this fussy and she has a VARIABLE RATE mortgage? I'm not buying this.

Somebody might have assisted her with mortgage processing, I helped my elderly mom to get a car loan. It's all online nowadays. If she's so cash based, she probably doesn't use credit cards much for her daily expenses, so mortgage would be her only obligation.

I think OP should help with methods described above (just don't put her SSN on any transactions and keep them low under 10k).

Why would someone have assisted her in getting a variable rate mortgage when it was crystal-clear that rates would be rising? Still not buying it.

High interest rates don't stay long: 7/1 ARM is cheaper vs 30 years fixed. If someone expected to repay the mortgage in less than 7 years and knew about cash resources it's not unusual. So is unusual for elderly people to have cash instead of keeping money in banks. SS and Medicaid benefits eligibility is one explanation

Pardon, I meant to stay not unusual. And 100K is not a mafia type cash

[Anonymous]

'extremely unusual'? maybe not common, but not extremely unusual.
a lot of people, those who can afford to, probably keep a lot of cash at home, 'just in case' of some
world calamity

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:She's this fussy and she has a VARIABLE RATE mortgage? I'm not buying this.

Somebody might have assisted her with mortgage processing, I helped my elderly mom to get a car loan. It's all online nowadays. If she's so cash based, she probably doesn't use credit cards much for her daily expenses, so mortgage would be her only obligation.

I think OP should help with methods described above (just don't put her SSN on any transactions and keep them low under 10k).

Why would someone have assisted her in getting a variable rate mortgage when it was crystal-clear that rates would be rising? Still not buying it.

High interest rates don't stay long: 7/1 ARM is cheaper vs 30 years fixed. If someone expected to repay the mortgage in less than 7 years and knew about cash resources it's not unusual. So is unusual for elderly people to have cash instead of keeping money in banks. SS and Medicaid benefits eligibility is one explanation

The OP is pretty clear that the cash resources were not known about. If you don't think $100k in the freezer is unusual for elderly people in the US, you are living in a different country than I am.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I agree with PPs that suggest that she start using the cash for daily expenses and not worry about the mortgage. If she really really wants to start paying down the mortgage, then she gives OP $5K or so at a time and OP sends a check to mortgage company and spends the cash.

But about the tax angle: if she really piled up this amount over a period of 20 years, that's $5K/year? Is her income even high enough for $5k/year to matter? Even so--bottom line--don't borrow trouble by doing big cash transactions. And OP, I'd use the phrase "asking for trouble" with her as you review her options.

Personally, I don't believe it's provable that she evaded taxes.And the amount is super small accumulated over many years, so IRS won't care much anyways.

She could have just taken money from her bank accounts (some people don't like keeping cash in banks, particular elderly or those who lost savings in developing countries bank collapses). And she kept the cash in the freezer. That was very typical in my former USSR country to cash your legal salary and hide savings at similar places at home. Under the mattress, cement into floor, in the toilet tank etc.

That is extremely unusual behavior among documented Americans who aren't engaged in shady activities.

Disagree. There are absolutely cultural Americans who engage in this type of behavior. Some due to age (older, maybe were children at or parents who went through Depression. Some is a ethnic distrust of institutions. I’m work with employee benefits and regularly hear of people who don’t participate in benefits 401k programs because of distrust of institutions or the stock market.

Yeah, but for some, like my neighbor, it is because they are hiding money. I have a neighbor who stole money from a charter school, was caught, had to pay some money back but apparently hid cash. They are endlessly updating their house even though the spouse that works and has their own business has no customers. They don't have money from family and spouses job is a sham. Everyone knows this and isn't impressed. They manage to burn a lot of money through constant expensive house updates. Lots of cash transactions there.

[Anonymous]

One of my friends just realized that her mother is doing something similar. What a pain in the a@@. I don't think it is as much money but this crazy.

[Anonymous]

My grandparents, who lived through the depression, did this. And then my mom unexpectedly started hiding money like this when she was older as well, repeating patterns she learned when she was a child not to trust banks.

[Anonymous]

I say good for her and her profitable side hustle!

[Anonymous]

I say everyone keeps more cash than people imagine. The older generation is pretty bad about this.