My dad is 90, mom is 86. Both are showing signs of dementia, but still able to live at home with help from me and my brother. About a year and a half ago, I took them to their bank to put money into one of their CDs. The banker suggested we put my name on their CDs, and parents agreed.
Now I’m wondering — if the time comes that one or both of them need nursing home care, and that depletes all their savings, would my name on the accounts somehow allow the nursing home to look at MY savings, before starting Medicaid? Or is there another reason this is a bad idea?
I have two brothers to share whatever is left of their estate when they’re gone, but I would never cheat them out of their share, and I’m pretty sure they trust me. So that’s not an issue.
On the other hand, is there a good reason to keep my name as a co-owner on the CDs?
Sadly, my husband and I learned the hard way not to trust the seeming good will of his brother. He had manipulated his parents over decades to give himself powers of attorney, decision-maker over their funds, and even their home. In a sense, he swindled my husband out of everything.
Better to be open with your siblings and work together with banker(s) and lawyer(s) to set up your parents' affairs.
You are NOT financially responsible for their care in a nursing home.
Contact an attorney.
I have a beneficiary named on my CDs.
However, if you have any questions, do ask an elder trust attorney.
Everyone has their own experience in these areas and everyone is a little different in many potential ways.
Gena / Touch Matters
Something I just learned. PNC bank in NC sends any POA or trust to their legal department before accepting them. This could slow down the process for a few days.
I don't see any issues with being a co-owner unless family issues arise. My CD's have my two children as beneficiaries listed, so there is that option as well.