A Cautionary Tale About Legalities, Saving For The Future, and Insurance

A friend of mine told me a sad story yesterday. Her parents are going to have to move in with her sister who lives in a different state. I assumed that the reason was because the parents had become frail or because they wanted to be nearer to their grandkids. But, no. The reason the parents have to move is much more complex and serves as a warning to the rest of us to make sure our affairs are handled according to the law and that we save something for the future.

My friend’s parents live on land that has been in the family for generations. However, they do not own the piece on which they live. The grandfather owns the land and pays all of the taxes. He has allowed his children and now

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3 Responses to A Cautionary Tale About Legalities, Saving For The Future, and Insurance

  1. Snowy Heron says:

    Wow, talk about being unprepared! I would have to guess that the parents lived either a very lavish lifestyle, without paying rent or putting money aside for retirement, or they were underemployed for their adult years, living a very low stress (but also low productivity) life style. Either way, they have the lifestyle now that they prepared for! Makes me feel better about having to deal with workaday stress and careful financial habits.

  2. larabelle says:

    I have to agree with Snowy Heron. Why did these people live their lives in such a unprepared manner? What a poor example to their children and grandchildren. I think it is just another sad example of “you reap what you sow”.

  3. Lauren Cohen says:

    It truly does seem they are rather unprepared. Aside from flood insurance they had other insurance options available to them that could have been of great benefit during these times. They had the option years ago of taking out a life insurance policy out on the grandfather. If they made themselves the owner and the grandfather the insured they would receive that money tax free in the event of his passing. And by the facts of this article that would most likely be sooner than later. The death benefit they would receive now on the grandfather would have provided them with the funds to continue to pay the taxes on the land and be able to live there. Also could have allowed them the necessary funds to rebuild on that land, now that their home was wrecked by a flood. Now that the grandfather is old and in poor health it is likely they will not be able to afford much more than a no medical burial policy if anything at all. Planning for future not only affects you but affects all your loved ones around you. What I took from this article is be proactive with your own future. If you depend on other’s for survival….you simply won’t survive.

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