Cash is king… well, it used to be.
There’s nothing like cold, hard cash right? Not where estate planning is concerned. Some people have a tendency to keep large amounts of cash at home. In our experience, this is a recipe for disaster. It may work fine as long as the person is healthy. But what happens if the person has a stroke or develops dementia? What happens after their death? Where does the cash go?
In almost every situation we have seen with large amounts of cash held at home, it was a disaster when a disability happened or after the person passed away. From the cash just disappearing, to family members taking it (but you can’t prove it) or caregivers walking off with it, the situation is terrible for everyone involved. (Read 7 Types of Helpers to Watch Out For here.)
The problem with cash is that your executor won’t know exactly what was there to begin with, where it went or how much went out, and nothing can be tracked about how it was spent. Plus, it’s not earning any interest sitting at home. (I know, I know, banks are paying very little interest these days!)
So, please, just beware: keeping large stashes of cash at home spells trouble for your estate plan.
If you have an aging loved one living at home and are concerned for their safety, we encourage you to give our Elder Care Advisors a call at 217-726-9200 or keep reading — 9 Ways Elder Law Attorneys Can Help With In-Home Care.