1. Free Legal Help, Legal Forms and Lawyers. TheLaw.com has been providing free legal assistance online since 1995. Our most popular destinations for legal help are below. It only takes a minute to join our legal community!

    Dismiss Notice

Protecting an inheritence

Discussion in 'Other Family Law Matters' started by bearcats, Sep 21, 2019.

  1. bearcats

    bearcats Law Topic Starter New Member

    Messages:
    5
    Likes Received:
    0
    Trophy Points:
    1
    Jurisdiction:
    New Hampshire
    I am disabled and am only able to survive because I get social security. However, that is nowhere near enough to live on alone. I also get a rent subsidy, based upon my income and disablity. This comes from the state I live in. Since I want to retain this subsidy, I can't/won't mention the state.
    My parents just died, both leaving behind money and land.
    When this is sold off, I want to protect this money from taxes and I want to prevent this influx of money from disqualifying me from my rent subsidy.
    I have nothing in the bank. I live hand-to-mouth, so there is no way I could afford a lawyer.
    Is there any type of legal device, such as a trust, that I could set up to protect the money that will be coming? My parents died in New Hampshire. I live elsewhere.
     
  2. justblue

    justblue Well-Known Member

    Messages:
    734
    Likes Received:
    312
    Trophy Points:
    63

    How much money are you talking about?
     
  3. bearcats

    bearcats Law Topic Starter New Member

    Messages:
    5
    Likes Received:
    0
    Trophy Points:
    1
    I do not know for certain. My guess is around $400 thousand.
     
  4. flyingron

    flyingron Active Member

    Messages:
    332
    Likes Received:
    131
    Trophy Points:
    43
    It possibly would have been better to have the inheritance put in a third-part special needs trust for you, but you can still form a first-party special needs trust for the inheritance that will put it out of immediate reach and preserve your existing benefits Of course, medicaid will have claim to it when you die. You should consult an attorney.
     
  5. bearcats

    bearcats Law Topic Starter New Member

    Messages:
    5
    Likes Received:
    0
    Trophy Points:
    1
    Thank you. I am sorry that I was not clear. I subsist on a very small social security disabilty pension. There is no way I could afford an attorney, and free clinics don't handle thise type of issues. Note that the estate has not been settled yet.
     
  6. army judge

    army judge Super Moderator

    Messages:
    30,604
    Likes Received:
    4,245
    Trophy Points:
    113

    Once a lawyer learns about the potential $400K, he or she will represent you and help protect your money.

    Interview a few lawyers and hire one.

    Don't entertain for one second any free advice about your money, otherwise you WILL get scammed.
     
  7. flyingron

    flyingron Active Member

    Messages:
    332
    Likes Received:
    131
    Trophy Points:
    43
    You can use some of the money to pay the attorney to set up the trust.
     
  8. Zigner

    Zigner Well-Known Member

    Messages:
    1,015
    Likes Received:
    546
    Trophy Points:
    113

    Why in the world can't you simply use the money to support yourself?
     
  9. flyingron

    flyingron Active Member

    Messages:
    332
    Likes Received:
    131
    Trophy Points:
    43
    He could, but it may not be advantageous in for him to do so.
     
  10. Zigner

    Zigner Well-Known Member

    Messages:
    1,015
    Likes Received:
    546
    Trophy Points:
    113

    Right - it's better (for him) to stay on the dole.
     
  11. adjusterjack

    adjusterjack Super Moderator

    Messages:
    6,752
    Likes Received:
    1,506
    Trophy Points:
    113

    It's not the "dole." Social Security DISABILITY Income is not needs based and therefor assets (like a $400,000 inheritance) are not at issue or at risk. EARNED INCOME may reduce SSDI benefits but not an influx of assets.

    I just went through all this stuff with my sister who qualified for SSDI because cancer disabled her and prevented her from working.

    If it's SSDI then the inheritance should have no effect.

    If it's SSI (Supplemental Security Income) then, yes, you may have to use that inheritance to support yourself until you can again qualify for SSI.
     
  12. zddoodah

    zddoodah Well-Known Member

    Messages:
    3,000
    Likes Received:
    609
    Trophy Points:
    113

    Ummm...huh? Putting aside the fact that your post is tagged as relating to New Hampshire, what would make you think that mentioning your state might jeopardize your subsidy?

    What taxes? The estate might have to pay some property and other taxes, but you shouldn't have any taxes since neither the federal government nor the State of New Hampshire has an inheritance tax (and NH doesn't have an estate tax, and the federal estate tax threshold is extremely high).

    Why? If you're looking at receiving $400,000, there's no way on Earth that you should still be receiving a rent subsidy. Pay your own way.

    The OP's concern is not the SSDI income. Rather, it's that the inheritance may impact the "rent subsidy, based upon [his/her] income and disablity [sic]," which "comes from the state" in which the OP lives.
     
  13. justblue

    justblue Well-Known Member

    Messages:
    734
    Likes Received:
    312
    Trophy Points:
    63

    According to OP's other thread, he state he lives in D.C.
     
  14. flyingron

    flyingron Active Member

    Messages:
    332
    Likes Received:
    131
    Trophy Points:
    43
    My son has severe disabilities, only one leg, and has had pancreas and kidney transplants. If I gave him $400,000, he'd burn through that in a very short period of time just on his anti-rejection drugs. By carefully funding things (he lives in a condo I provide and the rest is handled by special needs trust), he can get a little better quality of life.
     
  15. army judge

    army judge Super Moderator

    Messages:
    30,604
    Likes Received:
    4,245
    Trophy Points:
    113

    I created a special needs trust for our son when he became a quadriplegic, while also succumbing to noxious brain damage as a result of one of his many surgeries back in 2001.

    I sued the drunk driver, his insurance company, the hospital and anesthesiologist for their part of the tragedy on behalf of his two daughters, my wife, his estate.

    Our judgments totaled well into seven, lovely figures.

    A special needs trust is the way to care for those who suffer from severe illnesses or trauma, and ensure they are cared for long after the loved ones and caregivers have passed on.

    My wife became his court appointed conservator, and also administered his special needs trusts, which was held by a large bank.

    Upon his death, his special needs trust went to our two grands, and they were able to use theirs to fund their college education (under my wife's watchful eye and the bank's oversight).

    Sadly, Jon passed away in 2011.
     
  16. adjusterjack

    adjusterjack Super Moderator

    Messages:
    6,752
    Likes Received:
    1,506
    Trophy Points:
    113

    Then I agree. A $400,000 windfall would disqualify him from the rent subsidy, as it should.
     

Share This Page