QUESTION
How do I void a life estate in NJ? And who receives the proceeds when the home is sold, given that all parties are agreeable to sell?
Asked on Nov 07th, 2012 on Estate Planning - New Jersey
More details to this question:
My uncle has a life estate in a property of which I am the remainderman, as well as his POA. He is no longer able to maintain or afford the property, despite the reverse mortgage payment he now receives. He's been flooded out by the recent storm and is now living with me. It has become clear that he can not live alone without daily assistance. We plan to repair his home which could take 6 months to a year. I'd like to sell the home at that time, pay off the reverse mortgage, and use the proceeds to provide the care and supervision he will need. My primary concern is qualifying for medicaid and LTC if needed due to potential progression of dementia.
1 ANSWER
2 Awards
You seem to have a good handle on what needs to be done - your instincts are correct. If your uncle is unable to afford care, then yes, you can remove him from the home, and his absence from the home with extinguish the life estate. he can also voluntarily give it up, or you can do that for him using the POA. The sale of the property will be a bit more complicated than a normal sale because of POA and the life estate, but not anything that could not be handled by a competent attorney. Where are you located? I would be happy to help you with the sale. You will also need a Medicaid consultation in that the monies you get from the sale may not have to be used for your uncle's care, depending on how you inherited the remainder of the property. Feel free to call my office. Good luck !
Answered on Nov 08th, 2012 at 9:05 AM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship