[Notsosloopy]

I'm now the trustee of my mother's trust and accounts as she entered assisted living. This is a daunting responsibility & my hope is she'll have enough $ for her care; I expect her live another 10 years with needs full care the last few years.

She has accounts in Morgan Stanley, but not enough be with the branch and advisor I like, so it's all virtual and no management fees. When her home sale closes, I will then have enough funds for the branch and advisor at Morgan Stanley to help me. I feel he is a fiduciary that has stressed to me strongly my duty to my mother, not myself or my siblings.

She has accounts at Ameriprise being managed at 1.5%. I am planning on transferring those accounts to Morgan Stanley to the advisor and branch I like. However I'm so nervous to make a mistake and don't know if it's prudent to have all accounts at Morgan Stanley.

Since my mother's fixed income from her Guarsnteed Minimum Income Benefit (AXA Equitable which my dad purchased right before he died at the beginning of the recession, end of 2005) My dad feared losing his accounts further to the recession and having enough fir my mom, so he the bulk of his investment was the annuities)
Now my mother's income isn't enough for AL and care going forward so I need to pull monies from accounts to pay the deficit. She has two LTC policies that can help in the future when she goes into nursing care.

I apologize if this is too much info, im so new to this and as I said it's daunting. Many of you are savvy and experienced and I would like your thoughts on Ameriprise and Morgan Stanley, and this plan to move everything to Morgan Stanley.

The advisor goal is to "ladder" her investments so that I'll have access to the cash as I need it to pay her AL care and needs, over and above her income, but also earning more than inflation, as things considered. He believes there will be enough to last ten years, even with long term nursing care in the future.

TIA

[kingofbeer]

Originally Posted by Notsosloopy

I'm now the trustee of my mother's trust and accounts as she entered assisted living. This is a daunting responsibility & my hope is she'll have enough $ for her care; I expect her live another 10 years with needs full care the last few years.

She has accounts in Morgan Stanley, but not enough be with the branch and advisor I like, so it's all virtual and no management fees. When her home sale closes, I will then have enough funds for the branch and advisor at Morgan Stanley to help me. I feel he is a fiduciary that has stressed to me strongly my duty to my mother, not myself or my siblings.

She has accounts at Ameriprise being managed at 1.5%. I am planning on transferring those accounts to Morgan Stanley to the advisor and branch I like. However I'm so nervous to make a mistake and don't know if it's prudent to have all accounts at Morgan Stanley.

Since my mother's fixed income from her Guarsnteed Minimum Income Benefit (AXA Equitable which my dad purchased right before he died at the beginning of the recession, end of 2005) My dad feared losing his accounts further to the recession and having enough fir my mom, so he the bulk of his investment was the annuities)
Now my mother's income isn't enough for AL and care going forward so I need to pull monies from accounts to pay the deficit. She has two LTC policies that can help in the future when she goes into nursing care.

I apologize if this is too much info, im so new to this and as I said it's daunting. Many of you are savvy and experienced and I would like your thoughts on Ameriprise and Morgan Stanley, and this plan to move everything to Morgan Stanley.

The advisor goal is to "ladder" her investments so that I'll have access to the cash as I need it to pay her AL care and needs, over and above her income, but also earning more than inflation, as things considered. He believes there will be enough to last ten years, even with long term nursing care in the future.

TIA

Please contact an elder law attorney. You need to protect these assets before she enters into a nursing home.

[retiredguy123]

I don't know much about Ameriprise or Morgan Stanley, but I would prefer to use a lower cost brokerage firm, like Fidelity or Vanguard. I have never paid an assets under management (AUM) fee, but, if you do, don't pay the fee on all of her assets, just the money that is being actively managed. Fidelity will do that.

If she has any funds in a Traditional IRA or 401K, ask the assisted living facility what percentage of the assisted living cost is tax deductible. It is probably more than 50 percent. If she moves to a nursing home, it will be 100 percent deductible. Using the tax deferred assets first can yield a sizable medical tax deduction.

[Robbb]

Originally Posted by retiredguy123

I don't know much about Ameriprise or Morgan Stanley, but I would prefer to use a lower cost brokerage firm, like Fidelity or Vanguard. I have never paid an assets under management (AUM) fee, but, if you do, don't pay the fee on all of her assets, just the money that is being actively managed. Fidelity will do that.

If she has any funds in a Traditional IRA or 401K, ask the assisted living facility what percentage of the assisted living cost is tax deductible. It is probably more than 50 percent. If she moves to a nursing home, it will be 100 percent deductible. Using the tax deferred assets first can yield a sizable medical tax deduction.

Understandably you need help. Vanguard will do this for .3% the 1.5% you are being charged is criminal.

[villagetinker]

Originally Posted by Notsosloopy

I'm now the trustee of my mother's trust and accounts as she entered assisted living. This is a daunting responsibility & my hope is she'll have enough $ for her care; I expect her live another 10 years with needs full care the last few years.

She has accounts in Morgan Stanley, but not enough be with the branch and advisor I like, so it's all virtual and no management fees. When her home sale closes, I will then have enough funds for the branch and advisor at Morgan Stanley to help me. I feel he is a fiduciary that has stressed to me strongly my duty to my mother, not myself or my siblings.

She has accounts at Ameriprise being managed at 1.5%. I am planning on transferring those accounts to Morgan Stanley to the advisor and branch I like. However I'm so nervous to make a mistake and don't know if it's prudent to have all accounts at Morgan Stanley.

Since my mother's fixed income from her Guarsnteed Minimum Income Benefit (AXA Equitable which my dad purchased right before he died at the beginning of the recession, end of 2005) My dad feared losing his accounts further to the recession and having enough fir my mom, so he the bulk of his investment was the annuities)
Now my mother's income isn't enough for AL and care going forward so I need to pull monies from accounts to pay the deficit. She has two LTC policies that can help in the future when she goes into nursing care.

I apologize if this is too much info, im so new to this and as I said it's daunting. Many of you are savvy and experienced and I would like your thoughts on Ameriprise and Morgan Stanley, and this plan to move everything to Morgan Stanley.

The advisor goal is to "ladder" her investments so that I'll have access to the cash as I need it to pay her AL care and needs, over and above her income, but also earning more than inflation, as things considered. He believes there will be enough to last ten years, even with long term nursing care in the future.

TIA

I sent you a PM.

[Notsosloopy]

Originally Posted by kingofbeer

Please contact an elder law attorney. You need to protect these assets before she enters into a nursing home.

Thank you. I have done so, and the attorney explained the plan to take before she enters nursing home care. As long as the laws don't change, and I will consult our elder care attorney with check ups going forward. This attorney has been very helpful.

[Notsosloopy]

Originally Posted by retiredguy123

I don't know much about Ameriprise or Morgan Stanley, but I would prefer to use a lower cost brokerage firm, like Fidelity or Vanguard. I have never paid an assets under management (AUM) fee, but, if you do, don't pay the fee on all of her assets, just the money that is being actively managed. Fidelity will do that.

If she has any funds in a Traditional IRA or 401K, ask the assisted living facility what percentage of the assisted living cost is tax deductible. It is probably more than 50 percent. If she moves to a nursing home, it will be 100 percent deductible. Using the tax deferred assets first can yield a sizable medical tax deduction.

Thank you. I didn't know that at all about tax deductible for Assisted living expenses. She only has one smal traditional IRA left, I will look into how to use that first.

[Notsosloopy]

Originally Posted by Robbb

Understandably you need help. Vanguard will do this for .3% the 1.5% you are being charged is criminal.

Wow I had no idea. Thank you! I'm so glad I asked. I hope i can find someone there that I feel I can trust.

[CoachKandSportsguy]

Tax Deductibility of Assisted Living | Senior Living Residences

just a guideline, but I deduct about 60% as my mom has alzheimers/dementia with a medical diagnosis. . and I used her IRA to pay for her first two years +. Now she pays no taxes, but I am paying with assets as the interest is not enough. The monthly fee started in the $8K range, now she is in the $13K range as rates go up between 5-7 percent per year, and this was the cheapest facility in the area, close to me and good facilities.

If you think she is going to live 10 years, you will need at least $1.5M today and invest it with low risk bonds / very small portion in preferred common shares with high dividends. . and pay for as much of the monthly fee with dividends to maintain assets for as long as possible.

good luck

[Notsosloopy]

Originally Posted by CoachKandSportsguy

Tax Deductibility of Assisted Living | Senior Living Residences

just a guideline, but I deduct about 60% as my mom has alzheimers/dementia with a medical diagnosis. . and I used her IRA to pay for her first two years +. Now she pays no taxes, but I am paying with assets as the interest is not enough. The monthly fee started in the $8K range, now she is in the $13K range as rates go up between 5-7 percent per year, and this was the cheapest facility in the area, close to me and good facilities.

If you think she is going to live 10 years, you will need at least $1.5M today and invest it with low risk bonds / very small portion in preferred common shares with high dividends. . and pay for as much of the monthly fee with dividends to maintain assets for as long as possible.

good luck

Thank you so much. This topic of assisted living/ltc inflation being upwards of 13% a year has me very nervous.

Thank you for the advice about the "low risk bonds / very small portion in preferred common shares with high dividends. . and pay for as much of the monthly fee with dividends to maintain assets for as long as possible." I was thinking this, but I have zero experience in picking these types of instruments. Thank you. I feel like I need all the luck, and all the wisdom, and all the faith there is to do this.

[manaboutown]

Morgan Stanley Fined $15 Million by SEC Over Adviser Theft

[kingofbeer]

Originally Posted by kingofbeer

Please contact an elder law attorney. You need to protect these assets before she enters into a nursing home.

This is the most important thing to do. The financial advisors want you to keep the money under their umbrella. This is in their best interest. Elder law attorney will tell you what you need to do. The ultimate goal is when one enters a nursing home, you apply for medicaid. Medicaid has a five year look back period. Remember, you never know when she will require a nursing home. I have been through this with my mother. If you don't plan, the estate will lose hundreds of thousands of dollars.