Savings for an elderly person

My Mother-in-Law (87 years old) is in an assisted living facility, costing approximately $5,000 per month. She sold her home recently, netting $300,000, and has approximately $150,000 in certificates of deposit. Her monthly income consists of $1,300 social security and $100 pension. I know she wants to keep her money safe, but the CDs are paying next to nothing. Any suggestions where she should put her money?

Thanks,

Mike

Terry Says:  I can’t say this too clearly:  This is “chicken” money and it belongs in the bank in CDs (short term, less than 2 years) or in a Money Market Deposit Account at the bank.   And maybe at two banks, since the insured limit is $250,000.  I know she will earn nothing — but she will also lose NOTHING!   If there is something left over at “the end”  then her beneficiaries (your wife, her other children?) can make different decisions

BUT there are a few things that you should have in order.  Does she have a Will or revocable living trust?  Better to have the revocable living trust, with her daughter’s name as co-trustee (not co-owner) so she can act on her mother’s behalf if she is incapacitated. (REad the recent article on Wills vs RLTs on my website — www.terrysavage.com.   And does your mother-in-law have a healthcare power of attorney (re decision making over healthcare issues) AND a Living Will  (pull the plug document)?  These things should all be taken care of now, while she is still capable of making decisions.