Found an issue on this page? Let us know and we will look into it as soon as possible.
My mom has 13,000 in a savings. It is in her name and it is in my name.
Anonymous8 views3 answers
This money was originally a TSA. They were going to split it three ways to my two brothers and myself over 10 years ago when my dad passed. I told the TSA company that it is supposed to go to my mom. They interpreted the contract differently than I did. I had my brothers and myself sign the money over to my mom in case she needed it. My mom is not doing well. About 8 years ago, one of my brothers convinced her to take a loan out on her house for 60 thousand and loan it to him. My mother did not know this would cause her to have a new house payment. The TSA money was put in a savings in my mom's name and my name. She would qualify for assistance if the money was not in her account. The bank said I should move it to another acct in my name only. Please advise.
It is not likely the money can be taken out of the TSA without tax consequences. Speak with a financial advisor to determine what can be done to help your mother.
I must agree with Attorney James.
It also appears that you are getting poor advice from the Bank. While the sum of $13,000 is not huge, there is no reason to create additional income taxes by surrendering the funds. Moving the money into an account in your name only will surely generate income taxation.
Seek expert financial counsel.
Rosser Jackson Pettit IVEstate Planning AttorneySan Diego, CA ·
Unfortunately banks often give bad advice when it comes to estate planning matters. I assume your real question is how to get your mother to qualify for public benefits. There are two types of public benefits, entitlement benefits and needs based benefits. I believe you are concerned about needs based benefits, such as Medi-Cal. When applying for Medi-Cal and other needs based benefits one of the questions that is asked is if your mother has transferred any money or property for less then fair market value within a certain number of years. If she has, then she may have to wait to receive benefits. Her real options are; spending down the money, or establishing a special needs trust (SNT). However, establishing an SNT for $13,000 is probably not worth it. I strongly advise you to consult an elder law / public benefits attorney. Often local bar associations have programs that provide you with advice on these matters at no cost.
