Random Questions Mega Thread v1.1

[DoubleF]

Originally Posted by puffnstuff

A question...how many times do you use a bath towel before it goes into the laundry?

About a week? I also use the bath towel to dry my hands after washing, no separate hand towel.

Immediately after showering if something that's extra bleh where something could contaminate the towel immediately (ie: hospital visit, dusty yard work/allergens, someone has something transmissible like conjunctivitis)

If people think you're rubbing dirty stuff on the towels, they're probably not cleaning themselves in the shower quite correctly. You don't need to rub yourself raw, but IMO there's shouldn't be anything "dirty" other than some minor dead skin exfoliation and hair coming off the body. But there's also natural dust and other stuff potentially blows around the bathroom then sticks to the damp cloth and I wash it relatively regularly for the potential germs that might have a place to grow.

Bath towel isn't same scenario as jeans.

[bizaro86]

Originally Posted by puffnstuff

A question...how many times do you use a bath towel before it goes into the laundry?

Twice

[PepsiFree]

I wash them when I sense they need to be washed. I find the power of the mind to be a wonderful thing.

Or between 1-2 weeks. My anus is incredibly well kept though, if fotze is wondering how I manage.

[undercoverbrother]

Originally Posted by PepsiFree

I wash them when I sense they need to be washed. I find the power of the mind to be a wonderful thing.

Or between 1-2 weeks. My anus is incredibly well kept though, if fotze is wondering how I manage.

if he isn't I am now

[Scroopy Noopers]

Originally Posted by fotze2

But have you seen the devastation that comes our of your anus? Holey Crap.

On your towel? Then, you missed a spot in the shower…

[Wormius]

If I wanted to lend a parent a decent chunk of money, would a lien on their mortgage-free property (placed amicably, of course) be best way of ensuring repayment eventually? I don’t care when I get paid back, I just want a guarantee that I will, without arguing with other heirs about it in the future.

[PaperBagger'14]

Originally Posted by Wormius

If I wanted to lend a parent a decent chunk of money, would a lien on their mortgage-free property (placed amicably, of course) be best way of ensuring repayment eventually? I don’t care when I get paid back, I just want a guarantee that I will, without arguing with other heirs about it in the future.

Is there any other way of them acquiring the money? I ask only because the lien may be seen as an insult to them, I could also see it causing a rift between you and the other heirs if and when that time comes.

I would be asking them to try everything else before mixing finances like that (HELOC on property).

[Shazam]

Maybe promissory note?

[Reggie28]

Originally Posted by Wormius

If I wanted to lend a parent a decent chunk of money, would a lien on their mortgage-free property (placed amicably, of course) be best way of ensuring repayment eventually? I don’t care when I get paid back, I just want a guarantee that I will, without arguing with other heirs about it in the future.

I know two people who have borrowed money from their parents.

1. Young guy, well off parents, instead of going to the bank for a mortgage, the parents acted as the bank. It was drawn up with terms and interest. He called it a family loan, I'm not sure if that is the technical term or not. When he had a less than amicable divorce, that money was protected and was not shared with the Ex.

2. A person was going through a divorce and had to pay out the Ex to keep the house and her RRSP's. The parents loaned her money for the payout, it was a one page loan document. I only briefly scanned the document, so can't remember the details, but I think her Dad did that to protect the money from any future Ex's.

I'm not an expert, but they seemed straightforward, the document just confirms the money is a loan and has to be paid back.

[Geraldsh]

Buy the house and charge them rent sufficient to cover the mortgage + taxes.

[DoubleF]

Originally Posted by Geraldsh

Buy the house and charge them rent sufficient to cover the mortgage + taxes.

Then you get screwed on the taxes due to it not being covered by PPRE.

A loan agreement makes the most sense, but also to mark down that it must be paid out before any other loans/distributions.

I was going to make a joke about setting aside a slightly larger sum than the loan and drafting and agreement stating that your parents are taking out a life insurance policy on themselves with Wormius as the sole beneficiary to repay funds loaned to them in 2025... but it might be more expensive than expected and probably the real life outcomes will be a bit morbid/sketchy and not funny or practical at all.

[Slava]

Originally Posted by DoubleF

Then you get screwed on the taxes due to it not being covered by PPRE.

A loan agreement makes the most sense, but also to mark down that it must be paid out before any other loans/distributions.

I was going to make a joke about setting aside a slightly larger sum than the loan and drafting and agreement stating that your parents are taking out a life insurance policy on themselves with Wormius as the sole beneficiary to repay funds loaned to them in 2025... but it might be more expensive than expected and probably the real life outcomes will be a bit morbid/sketchy and not funny or practical at all.

Well, the practicality of life insurance is that (A) it is tax-free and (B) confidential from other heirs. The policy payout is outside the rest of the estate, so no one has to know it exists, other than you and your parents. So, while there are other potential issues, there are some sensible reasons to look at that.

[DoubleF]

Originally Posted by Slava

Well, the practicality of life insurance is that (A) it is tax-free and (B) confidential from other heirs. The policy payout is outside the rest of the estate, so no one has to know it exists, other than you and your parents. So, while there are other potential issues, there are some sensible reasons to look at that.

I assumed also though that assuming an advanced aged, life insurance isn't necessarily cheap, but also potentially no coverage is available depending on age.

I assume you won't be buying term life insurance for cheap if someone is like 96 years old (Not saying Papa Wormius is that old). Therefore you could throw away money and end up with nothing in the end, so loan makes more sense.

[Slava]

Originally Posted by DoubleF

I assumed also though that assuming an advanced aged, life insurance isn't necessarily cheap, but also potentially no coverage is available depending on age.

I assume you won't be buying term life insurance for cheap if someone is like 96 years old (Not saying Papa Wormius is that old). Therefore you could throw away money and end up with nothing in the end, so loan makes more sense.

You can't buy a term at that kind of age, though, and you would be down to a permanent plan. But yes, as you age and have more health issues (coinciding with the longevity concerns), insurance doesn't get any cheaper!

[fotze2]

Originally Posted by Slava

You can't buy a term at that kind of age, though, and you would be down to a permanent plan. But yes, as you age and have more health issues (coinciding with the longevity concerns), insurance doesn't get any cheaper!

My life insurance was ridiculous since I was born so I never partook. I die, someone else can worry about it.

[Wormius]

Originally Posted by Geraldsh

Buy the house and charge them rent sufficient to cover the mortgage + taxes.

I wouldn’t want to have the extra responsibilities associated with owning the house, plus they would lose their senior’s property tax grant and I would probably take a big capital gains tax hit if I sold it after they pass away. For example, house is $700k, loan would be about $100k.

I want to be completely altruistic here, but I do want the money back after they pass away, and I don’t want to be a contentious thing later. There’s only 2 beneficiaries, myself included.

[Wormius]

Originally Posted by PaperBagger'14

Is there any other way of them acquiring the money? I ask only because the lien may be seen as an insult to them, I could also see it causing a rift between you and the other heirs if and when that time comes.

I would be asking them to try everything else before mixing finances like that (HELOC on property).

That’s what they have, but due to being retired and only having OAS and CPP, the repayment of the HELOC is causing them some stress and they’re only barely covering the interest portion at the current interest rate. I may have to talk to the loan holder when I am back to see if something better that can be arranged, but the interest is ~ 5.5%, so it’s already pretty good.

I don’t think a lien would be received as an insult, I fully don’t expect any kind of repayment until they pass away, and I just don’t want to get screwed.

[DoubleF]

Originally Posted by Wormius

That’s what they have, but due to being retired and only having OAS and CPP, the repayment of the HELOC is causing them some stress and they’re only barely covering the interest portion at the current interest rate. I may have to talk to the loan holder when I am back to see if something better that can be arranged, but the interest is ~ 5.5%, so it’s already pretty good.

I don’t think a lien would be received as an insult, I fully don’t expect any kind of repayment until they pass away, and I just don’t want to get screwed.

Explore the possibility of them selling to downsize before the loan/lien?

[Wormius]

Originally Posted by DoubleF

Explore the possibility of them selling to downsize before the loan/lien?

It has been discussed, ad nauseum. They’re stubborn and not interested in leaving because they’ve lived there their entire life and all of their friends are there, etc. I’ve been open about it being totally fine to move in with us and being able to live very comfortably for the rest of their life on the proceeds of a sale, even if they decided just to rent.

Honestly, the house is a dump. The value is 95% land value. If they sold and rented or bought a small condo they’d immediately increase their living conditions.

I feel obligated to help though, since I am in a position to and they did raise me.

[Geraldsh]

Any chance the other beneficiary can participate with half the loan?