Trust vs POA

[alaskanseminole]

My in-laws aren't in the best of health; MIL is in an independent living cottage (needs to be in assisted living) and FIL has dementia and is in a TX State Veterans home.

My MIL has a medical and fiduciary POA for my FIL, but it's only a VA form which doesn't do squat outside of the VA. She has one checking account and two savings account, two of which are joint with her incapacitated husband. I'm listed as joint account owner on one account and need to get on the other two. To prevent a TL;DR post, I am the executor of their wills and both my wife and her sister want me to control their parents finances up either/both deaths. The biggest issue is if my MIL passes first, my FIL will have steady income (around $5k per month) until his death with zero outgoing.

A financial POA will get me on all their bank accounts. My question is, is that good enough or should I help them establish a trust now with me as a the trustee?

 

[StormHawk42]

Depending on the severity, if your FIL has dementia, it’ll be hard to establish a trust or any other estate planning docs. Not sure I would advise a Trust because then you have to go through the effort to ensure all the assets get properly re-titled and all beneficiary forms get re-designated. And the Trustee only has authority over Trust assets so it can be limited if assets aren’t titled properly.

If he has enough capacity to nominate you as a co-POA with your MIL and give you both access to all his stuff, that’s what I would advise.

But if he doesn’t have enough capacity for anything, you’re looking at a conservatorship.

 

[alaskanseminole]

Depending on the severity, if your FIL has dementia, it’ll be hard to establish a trust or any other estate planning docs. Not sure I would advise a Trust because then you have to go through the effort to ensure all the assets get properly re-titled and all beneficiary forms get re-designated.

If he has enough capacity to nominate you as a co-POA with your MIL and give you both access to all his stuff, that’s what I would advise.

But if he doesn’t have enough capacity for anything, you’re looking at a conservatorship.

Yes, he's in the early stages. We just need to get a mobile notary because he's unable to travel outside the veterans home (he's tied to a catheter--result from prostate cancer, not dementia).

 

[StormHawk42]

Yes, he's in the early stages. We just need to get a mobile notary because he's unable to travel outside the veterans home (he's tied to a catheter--result from prostate cancer, not dementia).

In that case, I’d get an attorney and ask them to draw up comprehensive financial POA’s nominating you and your MIL as co-POA’s (assuming you two will get along) and have your FIL sign. Maybe he/she suggests differently but I don’t think a trust makes much sense at this point.

 

[goldmom]

There are some basic things you can get from asking on here but you’d better get advice from someone who knows Texas law, assuming that’s where your family is located.
Otherwise you may not get the applicable information.

 

[alaskanseminole]

In that case, I’d get an attorney and ask them to draw up comprehensive financial POA’s nominating you and your MIL as co-POA’s (assuming you two will get along) and have your FIL sign. Maybe he/she suggests differently but I don’t think a trust makes much sense at this point.

That's where I was leaning...I have great relationship with my in-laws. They pretty much rely on me to do everything already and expect those responsibilities to increase.

 

[alaskanseminole]

There are some basic things you can get from asking on here but you’d better get advice from someone who knows Texas law, assuming that’s where your family is located.
Otherwise you may not get the applicable information.

Yes. I'm talking with an estate paralegal from Stanley Bernstein Law Firm, LLC. This is more of a "what have others done" type thread.

 

[SeaPA]

It also depends on the makeup of their assets. Do they own real estate? Vehicles? Or is it mostly liquid-type assets (cash, investment accounts, retirement accounts, life insurance)...i.e. things that can be transferred to heirs through declaration of beneficiaries or titling as POD/TOD/JTWROS.
But at a minimum there should be a durable financial POA (so you or someone can handle financial affairs if they become incapacitated), health directives if they don't want to be kept alive artificially (durable health care POA/living will), and a will.

 

[alaskanseminole]

It also depends on the makeup of their assets. Do they own real estate? Vehicles? Or is it mostly liquid-type assets (cash, investment accounts, retirement accounts, life insurance)...i.e. things that can be transferred to heirs through declaration of beneficiaries or titling as POD/TOD/JTWROS.
But at a minimum there should be a durable financial POA (so you or someone can handle financial affairs if they become incapacitated), health directives if they don't want to be kept alive artificially (durable health care POA/living will), and a will.

Other than my MIL's car, zero assets. Banking accounts and some investments.