<p>I’m on disability with income under 25k. My 94 year old dad wants to know how to leave me (and my son) a potential inheritance of approx. $150k. I currently have no pension… no assets. no car, no house. Any ideas? I live in California.</p>
<p>If you are able to file a 1040A or a 1040EZ, or if you or your son are receiving federal means-tested benefits (like food stamps, SSI, etc), or if you are considered a dislocated worker … your assets are ignored in the EFC formula if your AGI is less than $50,000.</p>
<p>It is possible that the inheritance might change your tax filing situation or your ability to receive federal means-tested benefits, though … which would mean you would need to report the assets.</p>
<p>Does anyone know a good tax accountant/lawyer who could advise my dad of the best way to deal with this? As far as I know he has set up annuities for me that spread most of the inheritance over 5 years, soooo I don’t think it will change my filing status. However, would like to get some expert advice. Any ideas</p>
<p>Asking faceless people in an online forum for a tax accountant recommendation may not be the best way to find one. You might try your local better business bureau or a recommendation from your local bank/credit union.</p>
<p>I agree with ErinsDad to check with a professional in your area, and perhaps your pastor in the church may have a CPA/accountant member of the congregation willing to help with advice for free if you cannot afford a consultation. You can also call/email the IRS help sites for clarification. Is it good you are exploring how to handle it before it occurs. Good luck.</p>
<p>Absolutely get a good tax accountant…If your dad is still living and is giving it to you now–its not inheritance.
If he has the $ in an IRA–perhaps in your state–you can get a roll over IRA to accept the funds without touching it.
Lots to consider. Good luck</p>
<p>Note: I am an attorney by background, but am not currently practicing.</p>
<p>In my view, having had much experience with inheritance issues in my family, what your father needs is not a tax accountant but a Certified Elder Law Attorney, which he can find through the following website (leave the name sections blank but fill in the location to get a list): [Finding</a> a CELA](<a href=“http://www.nelf.org/findcela.asp]Finding”>http://www.nelf.org/findcela.asp)</p>
<p>He needs an attorney (if he doesn’t already have one) because both an attorney and an accountant can give tax advice, but a tax accountant cannot prepare legal documents for him. A qualified elder law attorney should be able to advise him as to whether making a gift outright, leaving an inheritance or some combination of the two is the best path for him.</p>
<p>As kelsmom says…your assets may get ignored…depending on how you file taxes, etc.</p>
<p>But…if you don’t qualify to have assets ignored…</p>
<p>If the money is left directly to you, it would be better. Children’s assets are a greater problem for financial aid. You, your child, and your dad can have a private understanding that XX dollars is to be used for education. </p>
<p>Money in your son’s name will have a higher expectation to be put towards college.</p>
<p>A lot will depend on when you actually inherit the money. </p>
<p>If you inherit it long before your son goes to college then you can put some into protected retirement account, pay off some debts, maybe buy a primary resident, buy a dependable car, and/or leave an amount (below protected parent amount) in your own account. </p>
<p>About 5-6% of the amount that is not protected (either by retirement acct or protected assets amount) will be considered available for education.</p>
<p>Maybe your dad could give you some money soon to put in a protected retirement account or to purchase a home or purchase a good dependable car. That would eliminate that money from FA consideration. </p>
<p>Is your dad’s money in property/assets/stock (like a home that would need to be sold) or cash/savings?</p>
<p>(People, what is the protected asset amount for a single parent? About $40k? more? less? )</p>
<p>If the father is 94, the OP must be around 60, plus or minus.</p>
<p>For a single parent at that age, asset protection ranges from around $20K (50 years old) to around $30K (65 and older).</p>