Since my father passed away 5 months ago like I said I have been using most of the cash in a bank account to pay for the assisted living facility but like I said it will run out next year. My father also has a house which I am trying to sell but the real estate market is very bad. If it doesn’t sell soon I will rent it out. Luckily the mortgage is paid off. I was hoping it would sell fast so that I could use 25% of the proceeds for the assisted living facility living but if it doesn’t and the cash runs out I will have no choice but to tap into the money in the inherited IRA. I explained to her son who is the power of attorney that if I start drawing on the IRA to pay for assisted living it will be taxed at the high Trust rate of 37%. I also explained to him that it would be better to give her (him) the money and have him pay the assisted living and the money will last longer at her much lower tax rate. I hope it sinks in and he understands why I would do it this way.
