My parents are about 5 years from retirement age. Their combined income is around $20,000 a year. They live in a very low cost-of-living area, so they live a pretty simple life without many frills. Not a lot of money in; not a lot of money out.
Recently, they've come across an opportunity to bank a lump sum of about $200,000 up front, with a continued income of about $2,000 per month for the next 15-20 years.
Here's the twist... My father is on experimental medication. He gets the medication for free from the pharma company because of their low income and inability to afford medical insurance. Even if they could afford medical insurance, it wouldn't cover the medicine because it's experimental. The medicine on its own would cost them a whopping $4,500 per month if they have an income greater than $97,000 per year.
What, if anything, could they do to keep as much of the money as possible without raising their reported yearly income? I know they could put $6000 directly into an IRA. Neither of them have a 401(k) plan available to them. Is there a way to "sneak" more of the money directly into retirement without counting it towards their reported yearly income?
Are there other options they can consider or should they just abandon the opportunity completely?
EDIT: For everyone's sanity, please note that the final decision will be made with the help of a hired professional. The purpose of this question is to educate myself and search for ideas from those in the community who are passionate about finances and might look at the situation in a different light, seeing an option that even a professional might not initially consider.