So, my father, 62 years old, retired last year. With his lump sum pension and some inheritance, he has about $1.2M. However, his spending habits are obscene, and he seems unable (not unwilling) to curb them. He understands that he needs to spend less, but just... Won't. At the rate he's going, he will be broke before 70. And maybe well before.
He has a financial advisor right now that I believe is charging him 1% a year. Not ideal but I've met the guy and am happy to just have someone speaking sense to him. However, my father has now casually floated the idea of getting me to manage (control?) his money multiple times, and I'm wondering how that might work.
Essentially, he wants to give up control of his money entirely and have me give him an allowance and take decision making out of his hands. Obviously this would be a massive strain on our relationship, but I don't see a better way to stop my father from impoverishing himself over the next 5 years or so. So if it's sacrificing our relationship for his stability into old age, I'll go for it.
Question is, how would this work? Can he just gift me everything in his accounts? It's well under the lifetime limit, but does this raise any flags for the IRS? The idea is for me to have control over the money and for him not to have access. And I would just distribute it as needed for necessities. Open to any structure that would allow something like this. Thanks in advance for any ideas.
Submitted November 04, 2023 at 07:42PM by i_followed_rivers https://ift.tt/8y5JItL
