Threat of suicide, what to do?

[mac12]

Hello all,

It is a long story but I will try to make it short. My mother has bipolar syndrome. She tried to commit suicide about 10 years ago and she is constantly saying she cannot endure live anymore. Of course I tried everything within my reach, doctors, treatments but nothing seems to work... I cannot declare her mentally unhealthy, I would have to law suit her, which is of course very uncomfortable. I don't seem to find a solution for her medical issues. I am aware that here is not the place to talk about these medical situations, so I will focus on the economic aspects of it.

She didn't do any successorial plans and she wants to "solve" this situation fast but I cannot even think straight given the situation. I am honestly deeply tired.

She holds:
- Local money
- Some savings money abroad
- A couple of studio apartments locally where we live. One is where she lives
- A couple of studio apartments in Spain. She used to stay in one of them for the summer. We don't live in Spain though

The other day she asked the bank account manager and apparently if she passes away, the gov will take a bunch and lawyers also. Overall about 50% of everything she owns will be lost. and it will be bureaucratic, complicated and will take about 6 months to a year.

I really hate even the fact of writing this post... It is a situation that nobody would go through.

Options that we thought:
- Legally transfer her assets to me, cash would pay about 4% in tax from what we researched, but I suspect it is probably more. The apartments would pay more. But I don't think this is the right way to do it. Maybe a holding company would be better. I have to think also when eventually I would have to transfer the assets to my children.
- Open an account for her in a crypto exchange and I manage that myself (this would work only for cash but not for the apartments)
- Create one or two companies. Maybe one local and one abroad. These could act as holding companies. Not sure though.

Could you please help us know more on how to deal with this situation?

Thank you.

 

[369]

Maybe a foundation where she keeps control over the assets till she dies and after she dies a new administrator You and your childs can take over without changing the owner of the assets.This way you have full control over the assets and don't need to pay a dime in taxes.

Btw bipolar syndrome sounds like the body needs a big cleaning to normalize hormons and other staff.

 

[mac12]

That sounds interesting. We have not considered that. Thanks for your contribution.

Bipolar disorder is related apparently to lithium production within the brain. It is complicated since there are not known natural sources of lithium that could be ingested. Chemical medicines have some side effects and she doesn't want to take them at all... It is a tough situation.

I am looking forward to hear other possibilities also and start researching.

 

[Martin Everson]

First of all where is your mother resident? You need to look at inheritance laws there before doing any succession planning.

It would be impossible to suggest anything without knowing this basic information.

 

[Sols]

This is very dependent on local law.

Broadly speaking, a trust or foundation arrangement could work but you need it to be ironclad and in line with local law and the laws of wherever the setup is made. The goal is to transfer ownership of the assets away from your mother personally and clear succession plan for what happens if she passes (or is incapacitated). Depending on local law, this may remove some of the fees, taxes, and other complications that arise locally, especially if the assets are spread across other jurisdictions.

But if there is even a slightest crack in the structure, a disgruntled sibling or spouse (who for example wants a bigger piece of the pie) can try to topple the whole structure by claiming for example fraudulent conveyance.

Speak with a local attorney to get a proper legal opinion and, armed with that knowledge, speak with international trustees/fiduciaries about arrangements. The local attorney might be able to make specific recommendations.

 

[CyprusLawyer101]

Hi,
A trust appears to be a good tool for resolving issues mentioned in general. Essentially the legal title/ownership of the assets is being transferrred to the trustees who have a duty to follow guidelines of the settlor ( your mother in this case) for the benefit of the beneficiaries ( which can be yourself and other relatives or persons your mother may choose to include ; even your mother can be included in the list of beneficiaries.) Such arrangement must be set up and structured carefully by a professional to endure in time, be robust against creditors, tax claims etc. As a general principle the more power is released to the trustees by the settlor, the more robust the trust becomes.
Note that usually a protector can also be assigned to overview the trust. Also keep in mind that the trustees can be compiled by more than a group of people who may include also members of the family - it could be structured as a company and have relevant people on the board , although in general simplicity in structuring provides simplicity in operation. You should look at whats really needed to be done. Local laws in the country of residence and/or domicile of your mother should become relevant in terms of inheritance and inheritance tax complications and the general taxation of the trust assets. The situs of the assets themselves ( i.e. where the assets are located) also becomes relevant when structuring the trust. Taxation on distributions to beneficiaries should also be assessed.
Good luck and best wishes for better health for your mother.

 

[BigUnicorn]

I know this is a money forum, but having suffered of a neurological issues myself for some years in my youth, with then also collateral effects and damages from medicines, consider searching for an holistic doctor in the South West zone of Germany (Baden Baden area, Baden Wuttenburg, Svevia) that follows similar practices to Dr. Klinghardt and similar.

After a lot of trials etc, they really helped me and shifted my vision of medicine by a lot.
Normal doctors don't help. Trust me I've been to many. If you want a specific contact you can Gmail my username.

Good luck and all the best

 

[mac12]

First of all where is your mother resident? You need to look at inheritance laws there before doing any succession planning.

It would be impossible to suggest anything without knowing this basic information.

The residency is in Brazil.

Thank you all

@369. Here apparently foundations do not work that way. I talked to an accountant after you gave me that idea. I need more research though. Thank you on your comments.

@Martin Everson. I replied to you on the previous thread. Thank you on your comments.

@Sols. There are not other people involved, so fraudulent conveyance shouldn't be a problem. Thank you on your comments.

@Lawyer101. I will take notes on what you said. Thank you on your comments.

Yes I am aware of the drawbacks of medical treatment and that they don't really solve the problem. We couldn't find any holistic doctor locally. I will contact you later. Thank you on your comments.

 

[Sols]

@Sols. There are not other people involved, so fraudulent conveyance shouldn't be a problem. Thank you on your comments.

Fraudulent conveyance can still be a risk, if your local government tries to convince a court in for example Nevis or Cook Islands that a trust was set up in bad faith (e.g. with criminal intent). It's not a complete show stopper, it's just something to be aware of and you need to take actions sooner rather than later, once you have identified the correct, legal path forwards.

 

[mac12]

Fraudulent conveyance can still be a risk, if your local government tries to convince a court in for example Nevis or Cook Islands that a trust was set up in bad faith (e.g. with criminal intent). It's not a complete show stopper, it's just something to be aware of and you need to take actions sooner rather than later, once you have identified the correct, legal path forwards.

Ohh now I see better what you said before. Thank you for clarifying this matter.

 

[Martin Everson]

The maximum rate of inheritance tax in Brazil is only 8%.

Speak to a tax lawyer and get all the assets valued and work out a plan of what to sell to cover the ITCMD in worst case. You maybe able to pay what will be owed out of the cash.

P,S I was here thinking the tax rate would be like 40% or more but correct me if I am wrong on the rate.