So, caring for my spouse; have my own health problems as well. He’s had cancer twice. Beat prostate cancer, now caught the early stage 1A lung cancer. We don’t have much resources, lived 15 years in south FL, where cost of living far outstripped our income. So, we are now senior citizens with health problems and limited income.
My youngest son just had major car wreck, only could afford liability insurance. He can’t work if he doesn’t have a car. Owes $4500 on the older, used vehicle. I could take savings and front him maybe $5 K, to get a used car, but he couldn’t pay me back, in payments, until he pays off the current note. Working poor. I get it. If I could afford to gift it to him, I would. But I cannot. We are struggling, looking at oxygen times two people, diabetes times two people, and a host of other medical problems. I need hip replacement.
So, in order to protect ourselves, if he has another year or so to pay off the totaled car, I might front him, interest free, enough money to get an older vehicle, so he can get to and from work. Working poor, he cannot get a loan. So coming to the Bank of Elderly Parents. I have no issue giving him money as a gift, if I had it to give. But I have to protect us financially. Who will take care of us? How to assist him, make it a formal financial agreement, that payments must begin in one year, after his current note is paid off. Ideas on how to set this up?
Thanks All! So sorry, this should be simple.
Loaning money to your son can very well lead to the end of the relationship.
1) when he does not, can not. or wil not pay you back.
2) when siblings need the same and you cannot be there for them.
I guess but I do not know that Medicaid might treat a formal loan agreement differently from a gift - would the repayments be treated as income, maybe? In any case, this certainly is a point you'll need clarified.
To whom does he owe the $4,500?
Does he need the car for his job, or just to get to and from work? If it's the first, maybe his employer can help; if it's the second, the Uber idea is a great piece of lateral thinking, or else he can turn to co-workers, public transport - bicycle??? - or move closer to his job (I don't think anyone was suggesting that *you* should move, were they?). What options is he actively looking at?
If I have any sense of irritation, it's because he's asking you for help when he must surely know you're not in a position to help. Okay, I'd better admit it: he also totalled a car he owed $4.5K on and since no other insured driver is paying the costs you have to ask - whose fault was that, then? First response must be relief that he didn't hurt himself, but from there...
In the end, this is his problem to solve and not yours. Being sympathetic and supportive does not make you *able* to rescue him from a fix he's got himself into.
I hope I don't sound harsh but human nature being what it is, it is all too easy to try to get other people to save us from ourselves. I know I have. Don't enable your son. Pay him the compliment of treating him as an adult, an equal.
www.elderlawanswers.com/is-money-owed-on-a-loan-an-asset-for-medicaid-purposes-16613
You can print a promissory notes from the internet. You should charge the applicable federal interest rate on the loan. (AFR) The rate is different based on the terms of the loan. Look up applicable federal rate on the IRS website. That way, it's clearly not a gift.
The payments have to be set up to be equal amounts and the term can't be longer than your expected life. Then those payments will be considered part of your income if you file for Medicaid. The payments can't be deferred, though. They would need to start when the loan started. Depending on your age and the interest rate, maybe they would be payments he can handle.
I don't know what would happen if your son didn't make the payments. Maybe someone with a law background will weigh in on that.
But it looks like there is a pathway for you to loan your son money if that's what you want to do.
Each county should have a Department of Aging that I encourage you to call and explore the resources available for you.
Has your husband applied for State disability? You can apply on line as you have access to a computer. With his cancer he may be eligible for this. Or even SSDI.
Or if you both worked and are 62 you can collect early Social Security (I believe it’s 71% of total benefits then you’d receive@ full retirement) & be eligible for Medicare. Do you both work?
Please explore your options. They are out there.
I would not lend that money to you son for sure.
I appreciate the whys and wherefore about possibly needing to apply for Medicaid at some point. And the stories of personal loans to offspring gone awry. Those are practical information I can use. A month of Uber or Lyft to get to work is another good idea. Will try to reach him to discuss further. For now, I’m down with a probable kidney infection. Doc didn’t call me back, so looks like ER is my only option.
Just wanted to jump in and tell you that I had my right hip replaced in 2017 and it was easier than I thought it would be, all the way around. As soon as I woke up, there was no pain (like there was beforehand); I was up & walking the same evening, and home the next day. The only 'physical therapy' prescribed was walking a few times a day, so I'd use my trusty little walker & stroll around my neighborhood 2x a day.I was able to go back to work 3 weeks later, but took off 4 weeks just 'because'.....LOL. In fact, I only had an epidural instead of general anesthesia, which is MUCH easier to wake up/recuperate from. I was given some Propofol to sleep during the procedure, which was elective,.....some people want to be awake for the surgery. Um, not me.......... I am going to need my left hip replaced at some point, and I have no hesitation whatsoever about scheduling it.
Best of luck with all that you're facing.
If you are seniors, do you have Medicare? They will pay 80% of the costs and you may be able to sign up with Medicaid to cover the rest. Speak to your Human Services Department.
The other poster is right, you can NOT gift or loan the money you have if you are trying to qualify for Medicaid (government sponsored low income health insurance on ability to pay.) They will be looking at how much money you have and what you've spent it on.
At this point in your life you MUST think about your needs. You have no one to bail YOU out. Then what?
I understand wanting to help your son.
How about paying for a month of Uber rides? That way, at least you feel like you've DONE something for him.
*Does he have any brothers, sisters, aunts, uncles, cousins, friends, coworkers, etc. he could ask for a personal loan?
*Can he get a cash advance at his job or on his credit card?
*Does he have anything of value he could sell (collections of stuff, gold necklaces)?
*Can he get another part time job or get more overtime at his current job?
*Can he move back home (with you) to save money? Or give up his apartment/house and just rent a room in someone else's house (for cheaper rent)?
*(Way out suggestion) Can he file for bankruptcy to clear his debts?
I'm sorry this is happening but everyone has to watch out for themselves. If you need money for medical issues, to ME, that trumps helping your son get a car.
Good luck to you all.
As stated below, your son can take Uber to & from work. The rates are affordable.
Does he have a good credit rating? If so he can apply for and get his own loan. I thought if you had a loan on a vehicle (like your son’s wrecked car with the note) you had to have collision insurance if it was bank owned but could be wrong.
It would be nice if you could loan him the money but you just can’t. Oxygen is expensive, as are diabetic supplies. And health care premiums, etc.
Let him find a way out. You and hubby may need that money sooner rather than later.
And, FYI, we made a move to a different state to drastically reduce our cost of living. Consciously planned. I don’t know how that information was gleaned, that we made a poor choice of locale. Not sure why somebody would say that to another here. The current locale has electric price per kilowatt hour at exactly 50% of what we were charged in south FL, where our jobs were. Water, sewer, rubbish are a little more than half what they were previous locale.
uber and lyft are every where. They are basically modern day taxis. They are privately owned vehicles, drivers pick and choose which calls to take. Obviously it’s not ideal but....your sons gotta do what he’s gotta do, even if it means paying for an Uber or riding a bike to work. Good luck to him.
It sounds like you did not think out your move to an expensive part of the country and how that would deplete your retirement faster than expected. You cannot afford to give you son any money at all.
Your son is an adult and it is his job to figure out what he needs to do to get a new car. If you bail him out now, there will be something else in a year and he will not have the money to start to pay you back.
He already showed a lack of responsibility by not having adequate insurance.
Your comments, intended to wound, were effective. Very hurtful. I hope the Mods see this post.
So..Do not loan or give him money. Even if you found 5K between the couch cushions you still can not afford to loan or give him money. You would need that found money for yourselves.
The other thing you should do is begin application for Medicaid for both you and your husband. This is one of the reasons not to give or loan any money. They will look at any money given or loaned and it may effect the application.
Another thing you can do is determine if either of you is eligible for Hospice. Hospice can help a lot with supplies, equipment and other help.
Are either of you Veterans? If so contact the VA to determine if they can help with a variety of things Supplies, equipment, medications....
Your job was to raise your children and send them out on their own. He needs to learn to figure things out on his own. The more you help the less vested he will be in digging his way out of the trouble he is in.
Stay strong, and if you have to, practice in front of a mirror and make that stern look that you used to use and say the word NO. Now you have to mean it so keep practicing!