First of all, not sure why you're calling me out about limited posting activity; FWIW, I have spent a lot of time on these forums (long enough to understand the often-justified judgment and ire toward new members). I just usually don't have anything to add that someone hasn't already said better, and when I do have questions I can usually find answers in a previous post or by a Google search. However, in this case I have not been able to easily find what I'm looking for (lots of sales-y content), and yes we tried calling the insurance company too. I was hoping someone here could help me understand, or point me in the right direction to investigate further on my own.
I am "freaking out" because I know just enough to know that there may be implications I am completely unaware of that could complicate things down the road.
For example:
Does this count as a gift from FIL, and what does he need to do to document that?
How might this affect his future Medicare eligibilty? (He is 63.)
If it is considered income, is it income now or when the benefit is paid? (We are already in a higher than usual tax bracket this year and have enough tax planning strategies to sort out.)
What impact does the existing loan have?