Will executor inheritance and Social Security benefits - could Medicare be affected?

this could definitely cause problems with ur medicare. my cousin inherited a house last yr and her IRMAA went way up for 2 yrs after. not sure about SS benefits but medicare for sure gets affected. the gov looks at ur income from 2 yrs ago to determine ur premiums

You need to be careful here. This arrangement raises several concerns: 1. For Medicare: The house itself isn't counted as income when inherited, but proceeds from selling it could affect your IRMAA (Income-Related Monthly Adjustment Amount) for Medicare Part B and D premiums. If the sale pushes your MAGI (Modified Adjusted Gross Income) over certain thresholds, your premiums could increase based on the 2-year lookback. 2. For Social Security: Regular retirement benefits wouldn't be reduced by inheritance. However, if you're receiving SSI (which it doesn't sound like you are), that would be affected. 3. Tax and legal concerns: The bigger issue is this "distribute as you see fit" arrangement. This could potentially: - Subject you to gift tax implications when distributing assets - Create family conflicts if relatives disagree with your decisions - Leave you vulnerable to claims that you breached fiduciary duty I'd strongly recommend your neighbor create a proper will with specific distributions instead. An estate attorney could help set up the right structure.

your neighbor is putting you in an IMPOSSIBLE position!!! i was executor for my brother and even with everything CLEARLY spelled out in the will, his kids still accused me of stealing!!! and i didn't even get anything from the estate! if ur distributing "as you see fit" you're gonna have relatives HATING you no matter what you do! run away from this responsibility!!!

Has your neighbor considered setting up a trust instead? My father did this and it was SO much easier than going through probate. The trust spelled out who got what, I just had to execute it as trustee, and it didn't count as my personal inheritance. Might solve both the Medicare issue AND the family drama problem everyone's mentioning.

I've had the same IRMAA problems from an inheritance and it was a NIGHTMARE getting through to Social Security to deal with it. I kept calling their 800 number for WEEKS and either got disconnected or had 3+ hour wait times. When I finally got someone, they told me I was talking to the wrong department! I almost lost my mind. Finally I used this service called Claimyr that got me through to a real person at SSA in about 15 minutes. You might want to check them out at claimyr.com when you need to talk to someone at Social Security about your IRMAA adjustment. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Whatever you do, start preparing NOW for the Medicare premium increase if you sell that house. Even if it needs repairs, if you net more than about $30K from the sale, you'll likely hit at least the first IRMAA threshold.

One more consideration: if you're named as both executor AND beneficiary, you're in what's called a "fiduciary position" which comes with legal responsibilities. Since your neighbor wants you to use your discretion in distributing assets, you could face claims of self-dealing if you keep items of value for yourself. Regarding the Medicare issue, here's the current IRMAA brackets for 2025: If your MAGI is $103,000 or less (single), your Part B premium doesn't increase If MAGI exceeds that threshold, premiums increase in tiers up to several hundred dollars more per month The income from selling the house would be reportable in the year of sale. If the house was owned by your neighbor for many years, there may be capital gains tax implications even with the $250K exclusion, depending on how much the property has appreciated.

my aunt did this exact thing lol said I could decide who gets what and her kids haven't spoken to me in 3 years now... not worth it trust me

Regarding the Medicare premium impact - your concern is valid. The house sale proceeds could potentially push you into a higher IRMAA bracket for 2 years. However, you might qualify for an IRMAA reduction if you can demonstrate a "life-changing event" that reduced your income after the sale year. Valid life-changing events include: - Work reduction/stoppage - Marriage/divorce/widowhood - Loss of income-producing property due to disaster - Loss of pension income If any of these apply to you in the year after the home sale, file Form SSA-44 to request an IRMAA reduction. You'll need documentation of both the event and your reduced income.

As someone who's been navigating Medicare and Social Security for a few years now, I'd strongly echo what others have said about the IRMAA implications. Even if the house needs $45k in repairs, if it's paid off and in a decent area, you could easily exceed the $103k MAGI threshold when you sell it. One thing I haven't seen mentioned yet - have you considered suggesting your neighbor look into a "pour-over will" combined with a revocable living trust? This would allow her to specify distributions in the trust document while still giving you some flexibility as trustee. The assets would pass through the trust rather than being counted as your personal inheritance, which should help with the Medicare premium issue. Also, since she's 83, she might qualify for some legal aid services that offer estate planning at reduced cost. Many senior centers have referral programs for elder law attorneys who work on sliding fee scales. The family drama aspect alone would make me hesitant to accept this arrangement as currently structured. Better to help her find a solution that protects both of you!

I'm new to this community but dealing with similar Medicare concerns. Just wanted to add that if you do end up in this situation, you might also want to look into whether your state has any property tax exemptions or deferrals for seniors that could affect the house's value when sold. Some states allow property taxes to accumulate as a lien if the owner qualifies for senior exemptions, which could reduce your net proceeds from the sale and potentially keep you under the IRMAA threshold. Also, regarding timing - if you know you'll be selling the house, consider whether you have any other large deductions or losses you could time for the same tax year to offset some of the income impact. Things like large medical expenses or charitable contributions could help reduce your MAGI. The trust option others mentioned really does sound like the best solution here though. It keeps you out of the inheritance/income situation entirely while still allowing for the flexibility your neighbor wants.

I'm dealing with a similar situation as my elderly father's potential executor, and this thread has been incredibly helpful! One additional resource I'd suggest - many states have "senior legal hotlines" that offer free 30-minute consultations specifically for estate planning questions. I found ours through our state bar association website. Also wanted to mention that if your neighbor does go the trust route, make sure she funds it properly by actually transferring the house deed into the trust name. I've seen cases where people set up trusts but never transferred their major assets, which defeats the whole purpose and you end up back in probate anyway. The IRMAA impact is real - my friend got hit with an extra $2,400/year in Medicare premiums for two years after inheriting and selling her mother's house. Definitely worth avoiding if possible through proper estate planning!

I'm new to this community but have been through a similar situation as an executor while on Medicare. Just wanted to add a few practical tips based on my experience: 1. If you do end up proceeding despite the risks, consider asking an accountant to run projections on how the house sale proceeds would affect your specific tax situation. They can help you understand exactly which IRMAA bracket you'd fall into. 2. Don't forget about state inheritance taxes if your state has them - this could add another layer of complexity to the income calculations. 3. One option that wasn't mentioned is suggesting your neighbor sell the house herself while alive and then distribute the cash proceeds through her will or trust. This keeps the capital gains event off your tax return entirely. The trust option really seems like the best path forward based on everyone's experiences shared here. The family drama alone sounds like it could be devastating, and the Medicare premium increases could last for years. Your neighbor probably doesn't realize she's potentially costing you thousands of dollars in increased premiums with this arrangement. Good luck with whatever you decide - this community has given you some excellent guidance!

I'm new here but wanted to share my experience as someone who got caught off guard by IRMAA increases. I inherited my grandmother's rental property a few years ago and the sale proceeds pushed me into a higher Medicare bracket for two years - ended up paying an extra $1,800 annually in premiums that I wasn't prepared for. The "distribute as you see fit" arrangement your neighbor is proposing is really concerning from multiple angles. Beyond the Medicare issues everyone's mentioned, you could also face challenges with the IRS if they view your distributions to relatives as gifts exceeding annual limits. I'd strongly encourage exploring the trust option others have suggested, or even simpler - what if your neighbor just creates a traditional will with specific percentages to each relative? Like "40% to nephew John, 30% to niece Sarah" etc. This removes the discretionary aspect that could cause family drama while still being straightforward for you as executor. Also, since the house needs $45k in repairs, consider that you might end up having to front money for essential repairs before sale (like foundation issues that could prevent selling), which adds another layer of financial complexity to your situation. The kindness of helping a neighbor is admirable, but this arrangement as proposed could create years of financial and family headaches for you.

As a new community member, I've been following this discussion and wanted to share some additional considerations from my experience helping elderly relatives with estate planning. One aspect I haven't seen mentioned is the potential impact on your own estate planning. If you inherit a significant asset (even temporarily), it could affect your own eligibility for certain benefits down the road if your financial situation changes. This is especially important to consider if you're married or have dependents who might need to qualify for programs like Medicaid in the future. Also, regarding the house repairs - $45,000 in needed repairs (foundation, roof, plumbing) suggests this property might have code violations or habitability issues that could complicate or delay a sale. As executor, you could be legally responsible for addressing these issues, which might require taking on debt or using your own resources if the estate lacks liquid assets. I'd add another vote for the trust option, but specifically suggest looking into a "charitable remainder trust" if your neighbor has any charitable intentions. This could provide tax benefits and potentially reduce the Medicare impact even further. The fact that so many people in this thread have shared similar negative experiences with family conflicts and Medicare premium increases really speaks volumes. Your neighbor's heart may be in the right place, but this arrangement could seriously impact your financial well-being for years to come.

As a newcomer to this community, I've been reading through this entire discussion and I'm struck by how many real-world examples people have shared about IRMAA increases and family conflicts. It seems like almost everyone who's dealt with similar situations has a cautionary tale to tell. One thing I'd add that hasn't been mentioned yet - if you do decide to help your neighbor with estate planning alternatives, you might want to suggest she also consider creating a "personal property memorandum" alongside whatever legal documents she sets up. This is an informal document (referenced in the will or trust) where she can specify who gets specific household items, jewelry, family photos, etc. This could help avoid conflicts over sentimental items even if the major assets are handled through proper legal channels. Also, given that she's 83 and you mentioned the house has significant repair needs, there might be local programs that help seniors with home modifications or repairs. Some areas have grant programs or low-interest loan programs specifically for seniors that could help her address at least some of the issues while she's still living there. This might make the property more valuable and easier to sell later, whether through her estate or if she decides to sell it herself. The consensus here seems pretty clear - the informal "distribute as you see fit" arrangement has too many potential pitfalls. Your neighbor is lucky to have someone looking out for her interests enough to seek advice rather than just agreeing to the arrangement as proposed!

As a newcomer to this community, I've been following this thread and wanted to add my perspective as someone who recently went through a similar situation. My elderly aunt asked me to be executor of her estate with a similar "use your best judgment" arrangement, and after consulting with an elder law attorney, we ended up going a completely different route that avoided all the pitfalls everyone's discussing here. What we did was set up a simple revocable living trust with specific percentage distributions (like 40% to one cousin, 30% to another, etc.) but included language that gave me discretion to adjust those percentages by up to 10% based on individual circumstances or needs at the time of distribution. This gave her the flexibility she wanted while providing clear guidelines that protected me from both family accusations and the Medicare/tax issues. The attorney fees were about $2,500 total, but it was worth every penny for the peace of mind. The key was properly funding the trust by transferring the house deed and other assets into it before she passed. One additional benefit we discovered - because the assets were distributed directly from the trust rather than through me personally, there were no gift tax implications when I made the distributions, and the beneficiaries got a stepped-up basis on the house which reduced their capital gains exposure when they eventually sold it. Given all the cautionary tales shared in this thread, I'd really encourage your neighbor to invest in proper estate planning. The informal arrangement she's proposing could cost you thousands in Medicare premiums and potentially years of family drama.

As a newcomer to this community, I wanted to share my experience from a slightly different angle. I'm a retired paralegal who worked in estate planning for over 20 years, and I've seen firsthand how well-intentioned informal arrangements like your neighbor is proposing can create legal nightmares. Beyond all the excellent points raised about Medicare IRMAA increases and family conflicts, there's another issue I haven't seen mentioned: potential liability as executor. If that house has foundation problems, roof issues, and plumbing problems totaling $45k, there could be environmental concerns (like mold from water damage) or safety hazards that could expose you to personal liability if someone gets hurt while the property is under your control as executor. Also, the "distribute as I see fit" language is problematic from a legal standpoint. Courts prefer clear directives, and vague instructions can lead to challenges of the will itself, potentially tying up the entire estate in probate litigation for years. I'd strongly echo everyone's suggestions about proper estate planning. Even a simple will with specific bequests would be infinitely better than the current proposal. And if your neighbor is concerned about fairness or changing circumstances, she could always update her will - it's much easier to modify a proper legal document than to deal with the consequences of an informal arrangement gone wrong. The stories shared here about Medicare premium increases and family estrangement should be taken very seriously. Your financial security in retirement is too important to risk for even the most well-meaning neighbor.

I'm new to this community but have been dealing with similar Medicare concerns as I approach retirement. After reading through this entire discussion, I'm amazed at how many people have shared real experiences with IRMAA increases and family drama from inheritance situations. Your neighbor's proposal really does sound like it could create a perfect storm of problems - Medicare premium increases that could last for years, potential family conflicts that could destroy relationships permanently, and legal complications that could expose you to personal liability. The fact that so many community members have lived through these exact scenarios should be a huge red flag. I particularly appreciate the practical solutions people have shared, like the trust with specific percentages but limited discretionary adjustment that one person described. That seems like it could give your neighbor the flexibility she wants while protecting you from all the potential negative consequences. Given that you're already receiving $2,300/month from Social Security and are on Medicare, protecting your financial stability should be the top priority. The stories here about people paying an extra $1,800-2,400 annually in Medicare premiums for two years after an inheritance really drive home how significant the financial impact could be. It sounds like you have a solid plan now to help your neighbor explore proper estate planning alternatives. She's fortunate to have someone who cares enough to seek advice rather than just jumping into an arrangement that could hurt both of you in the long run. Good luck with that conversation!