Hi - Throwaway because of personal info. My parents are in their mid 80s and are worth around $20m. They are considering distributing $1m to each of 3 siblings who are in our 50s. 2 of us could really use financial help for various reasons. Sibling 1 started a business and has lots of start up costs. Sibling 2 bought a home near their parents to help them with their health problems (dementia and mobility issues), and hasn't been able to sell their house across the country yet due to adult children who currently live in the house that needs to be sold. I know that is a timing issue. However, the new house is in a high cost area so it is $250k more than they can sell their home for plus there will be moving expenses and realtor fees when they sell. Sibling 3 is already retired, wealthy, and doesn't really want a $1m distribution. They don't need it.
My dad has dementia and has no idea he has $20m any more. He is unnecessarily concerned with having enough money to live and to support my mom after he is gone. My mom has power of attorney and can make this decision. She is willing to make the distribution but I want to make sure we aren't missing something. I understand my parents will need to file a gift tax return. Is there anything else I'm missing? Is this a terrible idea?
It would take so much financial pressure off of sibling 1 and 2's minds to get the distribution of funds now rather than waiting to get a larger chunk when both parents pass. Sibling 2 and spouse are moving exclusively to help their parents. And sibling 1 has young children and has the added burden of a newly diagnosed health issue. (I won't get into it but it's a big, scary deal.) So it seems like an early distribution from our parents' assets, may make good sense in this situation. What do you all think? Trying not to be greedy or do anything that would hurt our parents. We love and appreciate them so much! Thanks for any advice you can give me!
Submitted September 20, 2023 at 05:08PM by throwaway_tmi_864 https://ift.tt/ECsUxTu
