Reply to It's me - the DIL with the in-laws and drama around their cabin.

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[quote=Anonymous][quote=Anonymous]Unless the cabin can generate income to cover the HELOC this sounds like a really dumb plan. Has anyone talked with an estate planner or financial advisor? AL is so costly and MIL only has 400kish? [b]Someone needs to be considering Medicaid lookback and possibly selling now. [/b][i]What if MIL doesn’t die in 3-4 years? Sorry to be blunt or seem as if I’m wishing death on her, but these are things you have to consider. Who is going to pay for her AL and SNF if she lives 10 years?

The whole saga strains credulity with all the twists and turns about siblings getting a deal/not getting a deal. IDK. If you’re real you need to tell your husband no joint assets go into this asinine plan, and if there’s a better plan, and it involves your money you need a post-nuptial agreement immediately.[/quote]

Bingo!

Unless MiL is in such fabulous condition, $300-400K is not a lot of money for AL/memory care. If she burns through this money and cannot meet her ADLs, then she will need to apply for Medicaid. And Medicaid will force her to sell this asset. (Caveat: you are not forced to sell if a VERY depressed market as it was for one of my parents, but the moment the market is anywhere soluble, this asset will need to be sold.) It doesn't matter that it is "meant to be inherited by the children," it's an asset and it must be sold to defray the state costs.

Taking out the HELOC is simply postponing the financial reckoning here.

Whenever I read these types of posts, I am so grateful that my parents and my siblings were realistic about what needed to be done - heck, we had to sell one parent's portion of the family farm dating back decades. It wasn't easy, but it was the most financially responsible decision to make for all three siblings. I could've bought the land outright then given portions back to my siblings if it had been 4 years later, but it wasn't and I wasn't going to tie up our kids' college funds and our retirement on sentimentality.[/quote]

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