Helping Ederly Parents from a Distance: Lessons Learned

[Peasie]

It took me almost four years, but I've learned a lot about supporting an elderly parent who lives in Jamaica.

Some quick lessons learned:

1. Get all legal documents in place and in order. If your parent does not have a Will - get one done right away!
2. If the Will states that all properties will be left to surviving children - change it!
3. If your parent does not have a designated Power of Attorney in Jamaica - get one!
4. If your parent is willing and able - move them to gated apartment/condo community.
5. As much as possible, remove managing of cash and finances from your parents.

If you think this is worthy discussion, maybe we can share ideas here in this forum.

[kia027]

Very good info Peasie

for #2.. What should it change to? Specific children as opposed to the term 'surviving children'

[Peasie]

Very good info Peasie

for #2.. What should it change to? Specific children as opposed to the term 'surviving children'

No. You don't want to leave property to named individuals in Jamaica! It is the hardest and most complicated thing to get done \0/ and the surviving children will get stuck with some serious tax bills and fees, etc.

My recommendation is that the Will should state that [your parent] directs that, upon their death, all properties be sold at market value and the proceeds divided equally among the surviving children. This makes things so much easier.

[kia027]

No. You don't want to leave property to named individuals in Jamaica! It is the hardest and most complicated thing to get done \0/ and the surviving children will get stuck with some serious tax bills and fees, etc.

My recommendation is that the Will should state that [your parent] directs that all properties be sold at market value and the proceeds divided equally among the surviving children. This makes things so much easier.

ahh.. That does make things less complicated. Thank you for sharing

[MsExced]

Peasie you told me couple years ago about the property and I thank you. Finally convinced my dad this was the way to go.

[Peasie]

The hardest part is convincing your parents

[seemiyah]

this is a very good thread and something I am becoming increasingly worried about. I have a question on bank accounts if anyone know the answer. If you get put on your parents bank/investments accounts in JA do you have to file taxes on that in the US even though you not getting no money? They want to do that so I don't have to fight nobody when them dead, but I also fraid of IRS so I tell them just make the will!

[Gen]

that depends (IRS question)

do you ONLY have signature authority over the bank account, or do you have signature as well as a financial interest in the foreign bank accounts ???

did the value exceed 10K US at any point during the year ??

[seemiyah]

that depends (IRS question)

do you ONLY have signature authority over the bank account, or do you have signature as well as a financial interest in the foreign bank accounts ???

did the value exceed 10K US at any point during the year ??

I am not on anything because I don't know how it works. So explain me the difference please?

[Gen]

ohhh you are not on any of them yet.

generally in the past (and still today) US residents must report all earned income from worldwide sources. If you earn income outside the US, you must report it here.

and since recently they are enforcing the FBAR-(foreign bank account reporting)-if you have bank or investment accounts abroad you must report them here. you will eventually inherit the assets in the account or you have the ability with your signature to make changes in the account (including taking out the money)

Who Must File an FBAR

United States persons are required to file an FBAR if:

1. the United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
2. the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

[Gen]

sorry bout the confusion, either way you still have to report it. I worded it that way because some people come with story about how them only have "signature authority" on the account and it does not belong to them.

either way it belongs to that individual.

[MsExced]

Not confusing gen that's how it was explained to me

[My Looh]

Family needs to really sit down and have a serious discussion on who will be the power of attorney for both financial dealings and care.

My father named my sister POA but in the end the responsibility fell to me so whenever I had to make decisions for my father all the paperwork had to be sent to my sister just for the formality of her to sign the papers and return them to me. Just an unneeded pain which could have been avoided if my dad sat us all down and we discussed who really was the one who was prepared to be the POA. He just picked my sister because she was the oldest child.

Also if it is your parents wish not to be kept alive artificially when death is near make sure they have a signed "Do Not Resuscitate" order in place.

[Peasie]

this is a very good thread and something I am becoming increasingly worried about. I have a question on bank accounts if anyone know the answer. If you get put on your parents bank/investments accounts in JA do you have to file taxes on that in the US even though you not getting no money? They want to do that so I don't have to fight nobody when them dead, but I also fraid of IRS so I tell them just make the will!

OK. Here's what I did.

I am not on my mother's bank accounts. However, I am her legal Power of Attorney (POA) which in Jamaica governs more financial matters than anything else. The Jamaican bank, BNSJ, has a copy of this POA as well as copies of my IDs (US passport and driver's license). The POA allows me to act on her financial behalf in all matters: investment, withdrawal, paying taxes, etc. I can (and do) go the BNSJ and withdraw funds, move things around, etc. When I do banking on behalf of my mother, I have to show them my IDs.

To get a POA in Jamaica you have to have a lawyer draw it up and it has to be filed with some court and some Stamp Duty must be applied.

So I don't think I have "signature authority" per IRS of my mother's Jamaican bank accounts, right Gen?

[Peasie]

Family needs to really sit down and have a serious discussion on who will be the power of attorney for both financial dealings and care.

My father named my sister POA but in the end the responsibility fell to me so whenever I had to make decisions for my father all the paperwork had to be sent to my sister just for the formality of her to sign the papers and return them to me. Just an unneeded pain which could have been avoided if my dad sat us all down and we discussed who really was the one who was prepared to be the POA. He just picked my sister because she was the oldest child.

Also if it is your parents wish not to be kept alive artificially when death is near make sure they have a signed "Do Not Resuscitate" order in place.

Sorry about your dad

Was this in Jamaica, My Looh?

A health advance directive - separate from the POA - is likely what you father should have had in place. When I discussed having an advance directive for my mother with the lawyer in Jamaica, the lawyer said it can be done but it is not really necessary in Jamaica. Dem nuh really prolong yuh life a Jamaica more dan suh