My mother-in law is fixing to inherit not much but around 12,000 to 15,000 from the?

Question

sale of a house that belong to her sister. There was no will, my mother-in-law was the closet living heir, but there are 3 nephews so it is going to split 4 ways with no problems. The only question I have is this money going into my mother-in-laws account and them taking away her some of her social security and health benefits. I have a lady that inhereited 100,0000 and they took everything aways from her until now it has dwindled down some and their giving her back $400 social security but she's still haveing to pay for her health insurance and meds until money is all gone. Is there a way my mother-in-law can give this money as a gift ot her son or can he get power of attorney over her and not let this money hurt her? She doesn't care she just doesn't want to loose her social because it would get all her medicine benefits messed up and cause her more harm than good.....HELP!

Answer 1

The most important facts are the programs she is under, and her age. Lacking those, the complications are such that a professional is needed. With those facts, the solution may be simple.

Answer 2

You didn't mention the age of your mother-in-law, as for Social Security, once you obtain a certain age, it doesn't matter how much you earn, it doesn't count toward your SS. Again, is the total amount going into your mother-in-laws account and the others withdrawing or receiving checks from her, this could also alter the amount. Although, most reputable law firms, will let you deposit the amount in their firms account and they will write a check the same day or at the same time as you give them the check for sale proceeds, thus they are accounting for the full amount of the sale, and dispursements to each equally or as set up in accordance with the agreement of the parties in this matter. As well, a bank will also receive the proceeds, and distribute in accordance with an agreement, such as deposit into a joint or an account set up temporarily for the sale only, they will in turn write cashiers checks to each party, thus the monies are not going fully into one account, for tax purposes, but only the sale proceeds each is receiving. These are all issues that need to be addressed. The age, total amount received, and distributed to the parties, how handled, when transferred, etc.

Answer 3

Call the Social Security office about this. I have never heard of anybody having their SS or Medicare changed due to sudden influx of money unless they are on disability (not retirement). There's a 1-800 number to call. It is TRUE that the money can affect disability payments, Medicare and Medicaid, but only if she is on disability. If she is on disability, she can spend the money down replacing her car and/or repairs to her own home since they don't take those into account when determining benefits. That's what my brother did (he's lifetime disabled) when he received $15,000 as part of a settlement for a home sale. You are allowed to own a home and a car, but everything else is an asset when things are calculated.

Social Security has a toll-free number that operates from 7 a.m. to 7 p.m., Monday through Friday: 1-800-772-1213.

Answer 4

Actually, it should not affect her in any way. The amount that she will be receiving is not enough to require it being reported to the government, unless the entire amount is being reported on a Schedule K form. For example, I recently inherited 58K, however it was not enough to where I even was taxed on it. The laws vary by state, but usually it has to be over 100K for the state to tax, and over 350K for the government to step in and tax. Seeing that relative is set to get appx 4K, she will get a check and that will be the end of it. Social Security will only know if she tells them, or if the entire amount is being reported on the Schedule K, which normally only occurs when it is interest income on stocks, and since yours is from real estate, you have nothing to worry about!

Answer 5

i recommend that you make an appointment with and speak to an estate tax law professional, particularly one that specializes in social security and medicare cases. it will be worth the fee, and sometimes the first time consult is free.

Answer 6

The things with the social security is that is based on income, i recommend her to rent it.

Answer 7

send it to me and ill say it was a gift then it wont effect her