Once I became a mom, I found myself reflecting back on my childhood and upbringing. I was one of the fortunate ones to be raised by both parents and grow up in a loving home.
I remember having sleepovers with my cousins. I remember our weekend trips to Fedco in Cerritos and then having a Western Bacon Cheeseburger afterwards with my family at Carl's Jr. across the street. I remember closing my bedroom door the moment I came home from high school so that I could talk on the phone to my friends that I just saw at school an hour before.
I also remember when my grandmother passed away. I remember when my aunt had a stroke and (to this day) has very little control of her left side. I remember crying when I saw my dad writhing in pain from kidney stones on new year's eve.
As a parent now, time seems to be going by much faster as I watch my own child grow right before my eyes. My husband swears that he can tell that our son grew overnight at times. And when I look at my little boy, I want nothing more than the absolute best for him.
I also see how important my parents are in my son's life too. And I also see how much more fragile my parents are becoming.
Age is something we can't fight. I can feel it in my own achy bones now. While I'm not necessarily afraid of getting older at the moment, I do worry that, if something were to happen to me, what would become of the rest of my family? Who's going to care for my child, pay the bills, and deal with any debt that I may have at that time?
Fortunately my parents are very well-prepared about things like that. They have their affairs taken care of. I knew early on in my adult life about how to protect myself.
But I've also met a lot of families where that's not the case. Nowadays I hear a lot about how many of our own parents are not prepared for 'the worst.' I know it's a morbid discussion, but I know of people who had to deal with the death of a parent and end up losing the family home or business because the legal paperwork wasn't set up. And on top of that, you get taxed by Uncle Sam.
When it comes to real estate, things can get pretty complicated if one or more of the owners passes away. There are legal issues to deal with. There are property tax issues to deal with. Whether you decide to keep or sell the family home, the discussion is much different from that of a young couple wanting to upgrade to a bigger home.
There's also a very emotional component to it too. It's not easy for you to clean out the home of a loved one who has passed on. Rehabbing the home to make it more appealing to buyers can be tough too, since it means changing the home that you were so used to seeing. Those dark, lacy drapes that your mom made herself may have to go. The purple flowered wallpaper may have to come down. That outdated chandelier may need to be replaced.
So what should you do to protect yourself and your family?
Speaking from my own experience only, I would consider talking with an attorney who can help you create a living trust and pour-over will. I would consider talking with a financial planner and/or a life insurance agent who can help preserve your assets. And if real property is involved, the collaboration of an attorney, Realtor, and financial advisor would help bring you greater peace of mind.
For more information on this topic, feel free to contact me.
(Please note that I am NOT an attorney or actively practicing in giving tax advice. Such info noted above is based on my own personal experience and opinions and NOT to be considered legal or tax advice.)
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