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URGENT: I just found out that a dear friend is at her wits end with her parents who are both citizens of the USA and permanent residents of Brazil. Her parents have been living in Brazil for the past 20 years where her father worked until he retired. Stupidly, her father did not report his income to the IRS and therefore did not pay a dime into Social Security. Her parents get $300/month from Brazil's pensioner system because her father did pay taxes in Brazil. They own an apartment in Miami and they own an apartment in Brazil. Neither apartment is worth very much and, if sold, might raise $200,000 total.


Her mother has Alzheimer's and her father has Parkinson's. Her parents are begging her to bring them to Florida where she lives. She has asked me for advice and I am meeting her this evening for a drink and just want to make sure I give her the best advice I can.


I see no way for her parents to be eligible for Medicare, Medicaid, or Social Security. But that's about all I'm sure of! Any other suggestions???

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NYDaughterinLaw, oh this can be so complex. I was wondering where the father had worked the other 20 years before going to Brazil? If he worked in the States, then chances are he paid into Social Security and Medicare via payroll taxes. One has to find out if he contributed enough time in the States to use those benefits.

Another option is for your friend, and any siblings, to all chip in and purchase health insurance, such as Kaiser. I have a friend where her husband and his siblings, all U.S. citizens, would buy health insurance via Kaiser any time the parents came to visit. Their visits were usually over a year each time. Kaiser seemed to had worked well for them.
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Oh wow. I hope someone with legal background could help with suggestions!

I assume it is the tax evasion problem that is the tricky part, right? I suppose they could be in trouble for that without even moving, but coming back to the US might bring it to light. That would be a serious offense, I assume, with serious penalties.

I sure can't think of a solution but cross you fingers that one of our other members will.

Has anyone contacted a lawyer (probably without revealing the names of the tax evaders?)
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Hi NYDaughterInLaw,
I agree with freqflyer, it is likely that her dad worked at some time in the US prior to moving to Brazil, and would have paid into the Social Security system. Regardless, they are eligible for Medicaid which is a needs-based program not based on paying in.
Also, assuming that the Social Security that they might be able to collect is not enough, they are able to apply for SSI. It is a needs-based program for people with disabilities (which it sounds like they both have). Here is a helpful page of info:
https://www.ssa.gov/pubs/EN-05-11069.pdf

However, the possible $200,000 that may come from the sale of the properties is nothing to sneeze at! That money could sustain them modestly with in-home help. When that is spent down, Medicaid and SSI might be options.
Best of luck,
Margaret
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These are serious legal issues. When they sell the condo, it's sale will be reported to the IRS (by law) and could raise a question.
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Here is something from the IRS website:

"4. I just realized that I must file U.S. income tax returns for prior years. How many years back do I have to file?

You must file a federal income tax return for any tax year in which your gross income is equal to or greater than the personal exemption amount and standard deduction combined (per the Form 1040 Instructions for the corresponding tax year). Generally, you need to file returns going back six years. This will depend on the facts and circumstances of your particular situation. For example, refer to Information for U.S. Citizens or Dual Citizens Residing Outside the U.S."

Could your friend's parents file and pay taxes for the previous 6 years? (No guarantee it would only need to be 6 years, but that is reasonable starting question.)
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A USA citizen has to pay income taxes to the US no matter where they lived. The only way to get out of this is to give up your US citizenship. I would think if they re-enter the US they will be required to pay outstanding taxes. They are going to need a tax lawyer to sort this out for them.
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They’ll have to pay back taxes no matter what. My guess is they won’t be able to collect SS/Medicare or Medicaid until they satisfy the IRS. Do they have dual citizenship or did they renounce it when they became permanent residents of Brazil?
This will take a lot of time and money. Do they have valid passports? Might be difficult for them to come back.
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Wow, this is complex. So they're citizens of the US and permanent residents of Brazil. Does that mean they have Brazilian citizenship as well?

Reading through your post and the answers a few times, I think the best advice to get is both from a good immigration attorney and a tax attorney (I can't remember for sure but I think they're called "enrolled agents"), to establish a foundation from which to work.

Was the husband working for a US corporation with a Brazilian subsidiary, or a Brazilian company directly?

Can the Brazilian pension, albeit nominal, transfer to the US so they still get these funds?

This is so complex, and it bridges the issues of citizenship or possible dual citizenship, not having paid taxes to the US, residency, needs issues.... I just think that attorneys skilled in these areas would be the best ones who could sort this out and offer suggestions.

Or perhaps the US Consulate could offer some guidance.

Please let us know the results of any basic legal advice; this is such a complex and unique situation.
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This is going to take many, many moons to unfold. Thank you to all who took the time and care to answer. I just got back from having that drink with my friend. She is calling a real estate agent in the morning to sell the condo tax implications be damned because she needs cash in order for parents to have any viable options. Her parents' lack of planning has put her in the terrible position of having to fix their mess. I will provide updates as I get them.
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I hate to say this but you’re friend is about to get waylaid by this mess. I think she should think long and hard about accepting the responsibility. She will end up using her funds to save these guys.

“Begging her to bring them to Florida where she lives”. Oh boy....
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I agree with Windy. Your friend is definitely a caring person, but I wonder if she realizes the enormity of the undertaking, especially if she hasn't been that close to her parents for 20 years.

And I really would think twice, and 3 - 4 times before selling the condo just yet.

Just thought of another option, in responding to the resurrected thread on oxygen. It's the Hill Burton Act, which mandates through federal statute that hospitals and facilities built with HB funds care for certain levels of indigent people. I don't know whether it would apply to US citizens who've lived out of the country for 20 years, but at this point it's worth a try.

http://www.needhelppayingbills.com/html/hill-burton_act_free_healthcar.html can provide more information.
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You might want to point out to your friend that her parents' poor planning does not equal her needing to solve this problem. The fact that they are hysterical and begging should make her pause. Not act.
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Barb's comment is one that's been churning in my mind, but she said it better than I could. I've been wondering as well if there's something else going on in Brazil, or with their lives, that makes them literally desperate to flee.

How much contact and how close has your friend been over the years? Have her parents ever expressed concern about political instability or something similar?
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Your friend needs to find an attorney FAST if she brings them back. IRS is a super creditor which means that if taxes are due, any social security that might exist is able to be garnished by IRS. There will be penalties for signup after 65 for Medicare that carry forward permanently. If they qualify for Medicaid after selling one residence since they exceed allowable exempt assets, if foreign assets exist they must be reported. She needs a calm legal opinion before applying for help because parents will have to provide records. They are NOT indigent with their assets. Brazil does not have tax treaty so no credits for US social security unless they paid in.
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She is not bringing them back. She is putting the condo up for sale to get cash to place them in a nursing home in Brazil. Thank you all for the good advice. And I will let you know how this all shakes out. It's neither going to be quick nor easy for my friend. She is both strong and realistic and is putting her health first. I learned that she does have some serious health issues to worry about.
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Supporting parents staying in Brazil sounds like the best way to go. Bringing them back to US would sure open a legal can of worms with the IRS and frankly I would be suspicious that they are seeing your friend as their "lifeline" and would probably take her down with them. This issue makes me wonder about all the retirees who head off to Central or South America because it is cheaper to live ....what happens when they are no longer "young" and basically able to care for themselves? Ought to consider the consequences down the road. But messing with the IRS is a BAD idea.
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NY, I agree with GardenArtist about not selling the condo right away. This complex matter needs to be straighten out first with the help from an Attorney, mainly one that specializes in real estate owned by non-U.S. citizens. And later find a Realtor that has handled such sells.

Do you know when your friends parents had purchased the condo? I wouldn't be surprised if it was back when they were U.S. citizens prior to moving out of the country. Or did they buy the condo as non-citizens? That a different ball game.

Anywho, the IRS will be involved as the Foreign Investment in Real Property Tax Act of 1980 is a United States tax law that imposes income taxes on non U.S. persons disposing of homes in the United States.

This is not a DIY project.
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Frequent - Her parents are both US citizens living abroad in Brazil.
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A title search will need to be done before a sale of a house. Not sure if back taxes will show up if so, it's a lean that will have to be paid. If not, it's really not fair to the Realstate agency or the buyer to sell property that may not be legal to sell. She really needs to get some advise. Her parents need to get this sorted out from their end.
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Back income taxes will not show up. Why wouldn't it be legal to sell?
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There are such things as IRS liens, but if your friend's parents hadn't received any notices in the mail from the IRS, there may not be any liens on the condo for estimated back taxes.
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Good news! My friend sold her parents' condo and that money, after she pays whatever taxes she must, will fund a room in a tidy little rest home in Brazil for her parents for at least a couple of years. She's getting important things done and is protecting herself and her own health from her parents.
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Thanks so much for the update, NYDIL!
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NYDaughter, yes, thank you for the update, that is good news.
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Thank you NYDaughter for the update. I'm glad to hear good news today.
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Doozy of an update! Basically: friend did not listen to what I told her and now is begging for help.

My friend's father died suddenly last month while she was in Brazil preparing to move her parents to a nursing home she found in a quiet little Brazilian town and to pay for it with the money she raised from selling their condo in Miami. Then, she and her sister decided to MOVE THEIR MOTHER TO THE UNITED STATES!

Yes, friends, their mother with Alzheimer's boarded a plane and now is living with my friend's sister, who has an infant, and her husband, whose useless, and now they all got together and started begging for money through email and Facebook. The GoFundMyPoorDecisions requests have become uncomfortable.

I cautioned her many, many times against bringing her parents/mother to the U.S. because her father did not pay taxes. I told her nursing homes are expensive and that her parents would not qualify for Social Security, Medicare, or Medicaid. I told her as many of the things I have learned from the wise people on this forum throughout the years and it turned out I wasted my breath, time, and energy. Sigh. Whine. Sigh.
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Oh well.
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NYD - splutter, splutter - do you mean they're asking YOU (as part of their social circle) for money??????????
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So maybe poor decision-making is genetic in that family? I'd just build some good boundaries and let your friend solve her own problem. Some people never learn and expect others to bail them out over and over and over again.
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I feel sorry for the mother. I can't imagine the trauma of moving from your home country and into a situation with an infant and useless husband married to someone who seems to have difficulty comprehending the enormous challenges of the situation.

I do understand her dilemma; if this were my mother, I don't know if I could leave her in a foreign country. I guess I'd try to find a way to bring her home.

But to set up a GoFundMe page - well, to me that's really gutsy.

(I think this GoFundMe business has gotten out of hand.)

NYDIL, I am sorry that the situation turned out so poorly, but you've done as much as you can. I wouldn't feel obligated to contribute.

Is the husband working? Is your friend working?

It's sad that it turned out so poorly; seems like the death of the father might have changed the dynamics of the situation.

I hope your friend manages to find some way to get the assistance she needs, not necessarily just money, but actual care.

Has she contacted the Brazilian embassy? Brazilian groups? I know there are some in NYC b/c I watched a dance program (Bare Feet) on Brazilian style dancing. Maybe one of those groups could offer some help to your friend.
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