My mom is 65 and her health has been slowly declining since my dad’s unexpected passing in 2016. She has a life insurance policy through her former employer which steadily declines in amount every five years of her life. The total amount to be paid would be about $32K, now that she’s 65 it’s down to $16K. It plateaus at $8K when she hits 70. That would cover her funeral and burial expenses because she will be buried with my dad at a local veterans cemetery and that is free to us since dad was a Vietnam Era Navy veteran. But what concerns me is what happens after she dies. We live with her in my family home which still has about a $70K mortgage attached to it. The house is also in pretty serious disrepair but my husband and I will be left with it to live in temporarily because neither of my sisters want it, they already have their own homes. Mom is also likely to have lingering medical debts because she continues to have additional medical problems crop up due to her renal disease. I am going to be the POA and Executor of her estate because we live with her, I am her primary caregiver and again neither of my sisters want the responsibility. My question is how do I go about getting additional insurance on my mom without appearing selfish or ghoulish like I’m waiting for mom to die which of course I’m not, but I don’t want to be left with a large amount of mom’s bills on top of our own that my husband and I can’t pay and I know I won’t get any monetary help from my sisters. I don’t want to lose the family home and I want my credit & finances protected but mom was never good with handling or managing insurance, money or bills (Dad did it all) so she has no idea what really is a good life Insurance plan that covers all expenses and debts. Oh and I forgot if she makes it to 85, her old employer’s life plan cuts off completely. It’ll be up to her to find a new one at that age. So I’m concerned on how to do this. I don’t have an extra $ to talk to a lawyer either. My brother in law is one but I feel like he is too close to this situation to be neutrally objective. Any suggestions on how to do this without upsetting anyone in the family???
I would start figuring out what you are going to do when your mom dies, because you will be mourning and the last thing you want is no plan.
Who pays the mortgage now? Mom.
You will not be POA. That ends at death. She chooses an executor for her will and if no will the courts will appoint an executor, there is no guarantee that will be you. Usually it is a willing able family member.
Someone mentioned that you could buy a life insurance policy on mom and you are the beneficiary, be careful, this makes it income to you and not inheritance, so fully taxable income. Depending on your husband's income this could put you in a higher tax bracket and paying off the mortgage isn't tax deductible only the interest is.
Couldn't be more complicated, huh. sounds like your plate is full. wishing you luck.
You need to get POA now before Mom gets incompetent to make her own decisions. If not done, then its guardianship and that is expensive.
Has Mom written a Will yet. Cannot be Executor if not a Will. Probate would have to assign u as an Administrator and the state determines who inherits.
Your husband was not responsible for his Dads bills. If the estate could not cover the bills, then the debtors don't get paid. The mortgage was not DHs responsibility. House gets sold or u stop making payments and the Mortgage company forecloses.
This happens in your circumstances. Mom should be able to get Medicare soon
Be aware that depending on what type of VA cemetary Dad is buried in not everything is free. Maybe Moms lot, maybe the plaque. But opening the grave u may need to pay for. My inlaws are in a National Commentary and we paid nothing. The County ones have some charges.