The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: merryt on August 21, 2015, 09:10:52 AM
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Thank you so much in advance for any advice you can give, I have a bit of a hard situation, a friend of a friend has entered a bit of a rough situation, he is 60 years old and has been diagnosed with stage 4 cancer. The doctors are saying that he has 2 more years to live. He has a wife and a daughter that he has been taking care of and if he passes wants to make sure they are in as strong of fiscal shape possible.
Numbers:
— INCOME —
Business - makes 58k but requires him, when she takes over it can expect to make 20k
Wife job - 38k
— DEBT/ASSETS —
House - 205k mortgage, 315k value
2 cars - Paid off - 9k
Medical bills to hospital 7k
Credit cards, old medical debt - 6k
— INSURANCE —
Life insurance policy on him 2x 50k
Life insurance policy on her 50k
Current Plan
Apply for disability
Turn business into just her name, or sell it.
ReFi House to just her name
Get will drawn up
Questions
Are there any subsidized home lenders for widows, or any other options for her to keep the house?
Is it possible for him to get additional life insurance?
All of the credit cards are in his name, can she avoid paying them?
Is it easy enough and worth while for him to leave the LLC for the business?
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There's another recent post on here about terminal cancer. Maybe some answers are there?
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Life insurance - Probably not, but it doesn't hurt to try.
It sounds like they need to talk to a lawyer to figure out what makes sense and get things in place.
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I think the chance of getting additional life insurance is pretty slim. I'm a ten year cancer survivor and I got quoted $750/month for a $100K policy and I'm younger. If he's a member of any organizations that offer life insurance, that would be his best bet to try.
Is downsizing on the house an option?
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He can apply for social security disability benefits: http://www.ssa.gov/planners/disability/dapply.html
If his child is younger than 18, they would be eligible for survivor benefits, and possible the widow, too: http://www.ssa.gov/planners/survivors/onyourown4.html
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There's another recent post on here about terminal cancer. Maybe some answers are there?
I found a post that contains similar information, I will be sure to pass it on:
http://forum.mrmoneymustache.com/ask-a-mustachian/spouse-has-colon-cancer-what-now/
A couple good bits of info
- Make sure the spouse with out cancer gets power of attorney for all situations. Make sure the attorney you use is HIPAA compliant
- If you can, have another responsible adult go to appointments, etc. (outside the 2 of you)
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what is the actual need for a refi without his name on things? that doesn't make sense to me.
What state are they in?