Talking finances with older parents

[frugal-one]

Iris and TV Rodriguez, I have to ask. Would having my name on the financial instruments exempt me from any inheritance tax? My Dad is obsessed about this and I've wondered if creating joint accounts when one of them goes would be a simple solution that also facilitates disbursal of funds upon final liquidation of the estate.

PODs (Paid on Death) and TOD (transfer on death) will alleviate probate. Also, in some states a home can have TOD (transfer on death) also. It is treated the same as if the person received an insurance policy. In our case we only have one child so we did this. The only other thing is to have a will that indicates that he is able to pay the bills after we are gone.

IL... My son is very frugal (more than I am sometimes). I don't think he is "greedy" only that he thinks we should pay for everything since we are "loaded". I think this mentality would expand if he knew our net worth. Not that it is much ... but to him it would seem like a fortune. He thinks we should be candid about money with him but because of this attitude we are very leery of saying anything. I have told him there may not be any inheritance since we have many years left (hopefully) and if we get sick that may be it. A conundrum.

[iris lilies]

Kib, my mother didn't have enough money to throw us into inheritance tax.

ANM, $300,000 IS a lot of money and I suppose could be life changing especially if one is in debt and uses it to get out. I guess I meant that for trading up in houses and that kind of mindset, it would be gone within 5 years.

[razz]

Be careful about being on joint signatures on saving accounts or other assets, according to a banking friend. If one of the cosigning parties has a legal financial liability triggered for whatever reason, half the $$$ amount on the joint instruments would be considered assets and can be seized to settle the liability.

[Florence]

I am 67 and my husband is 68. I have made sure that our daughter (only child) knows where our wills are and where our financial accounts are.

[frugal-one]

I am 67 and my husband is 68. I have made sure that our daughter (only child) knows where our wills are and where our financial accounts are.

I have done the same but have not elaborated on dollar value.