Can we protect assets my father received from his parents estate? He needs assisted living and just received the inheritance.

It’s your dad’s money. Why wouldn’t you want to make it available for his care if it’s needed? I am my parents’ POA and have been very careful with their money. Now that they are in assisted living, the money is available for their additional care. It’s not there for me to protect so I can get the money after they pass. Their money is starting to dwindle and now I’m looking into VA benefits. I’m here to take care of their finances, not to try and get a windfall from their hard work and prudent savings.

I fully understand why asking the tax payer to fund your father’s care is not fair, and also why letting it all go to care at this late stage is quite annoying.

The lawyer in me suggested that if your mother is alive, it might be possible to put the inheritance into a joint account, and then apply to partition his assets. That way half of it might last longer than the need for care. Or pass it on now, and see if he outlives the look-back period on gifts.

Regarding the system being unfair, here’s what I think is unfair. I saved and denied myself various luxuries so I could provide for my old age care. I worked all my life and still bring in earned income. I’ve taken care of four sick family members and one friend. Others who spent on fabulous vacations and clothes and cars and boats now don’t have enough money to pay for their own eldercare. They get Medicaid, which is financed by the US taxpayer. That’s me. Even though I’ve paid into the System all my working life (age 16 to now) I’ll never get my old age expenses paid by the government. So I’m paying for mine and theirs. Is this right?

Your dad has a regular source of income, doesn’t he? Like he has Social Security retirement income or maybe SS disability income? Some savings? No home? So this windfall is all extra $, that’s the situation? If so, I bet his $ outlives him, if it’s midsix figures that he’s inherited. Probability is the $ will outlive him, if he’s in assisted living.

Thats a real different situation to be in, as he needs to have some of this money so that he can easily draw from it for next 3-5 years but can have some invested but also have it set up to lessen taxes / liabilities for his estate for when he dies (and goes to you). Imho He needs an estate planning attorney who also has a financial advisor they work with. It’ll be a team project.

Important! if he hasn't actually gotten the $ yet, I’d contact the Executor or the CPA firm or probate attorney that’s handling the asset distribution to see if they can wait a bit to do this. Asap on this. Why? Well the new estate attorney for your dad may want the $ to go into a Trust. It would be a nice clean move paperwork wise to have it go directly from Estate to Trust. Waiting to do a distribution happens, or doing distribution in segments happens, it’s not an uncommon. So ask. But you & dad will need to get on finding an attorney asap.

Fwiw if you’re hoping that he can be eligible for LTC Medicaid, unless he’s in NY or CA that is not at all likely imho. Only those two have removed the rather draconian asset limits

Dad needs to talk to an Elder Law attorney. The rules on inheritance (including disclaiming it) are very State specific.

What a blessing for him to receive this money just in time to pay for assisted living! Excellent timing, that's how God works! What you're trying to protect it from?

With Parkinsons your Dad may need Medicaid within 5 yrs. Because of this, any investments done within that time may be considered frauding Medicaid. He can't even gift the money. You may want to talk to an Elder Lawyer well versed in Medicaid. (The 15k gifting that IRS allows a year...Medicaid doesn't)

This money should be used for his care not to "protect" for his kids to inherit. I know it doesn't seem fair but Medicaid comes out of taxes.