QUESTION
What is the best way to keep our house if we have to go to a nursing home?
Asked on Sep 03rd, 2011 on Estate Planning - California
More details to this question:
I am 61 years old and my husband is 67. We own our house. If we have to go to a nursing home, how can we keep our house? Do we sign it over to one of our children? What is the best way?
4 ANSWERS
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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This is a fairly complex question, which should be answered by an attorney who works in "Elder Law." Referrals are available from the Oregon State Bar. Do NOT simply sign the house over to anyone, as this may disqualify you from the assistance you need. Your whole situation should be reviewed by an elder law attorney.
Answered on Sep 07th, 2011 at 6:47 AM
Trusts and Estates Attorney serving Troy, MI
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Barron, Rosenberg, Mayoras & Mayoras, P.C.
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The last thing you want to do is give it to your children or put their names on the deed with you. You do not want the home in your children's names or become partners with their problems if you put their names on it. Additionally, if you give them the home or put their names on it, then it will be considered a gift for Medicaid purposes and cause an ineligibility for a period of time if you need benefits with 5 years.
Answered on Sep 06th, 2011 at 3:55 PM
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You are asking a complex question. You should seek legal advice before making any decisions. At the present time you and your husband can protect the home from creditors (not including the secured home loan[s]) up to $550,000 of equity through a homestead. However, if you transfer your home to your children I will lose its homestead exemption. Also a transfer will start a period of ineligibility to qualify for Medicaid. Things to consider are whether nursing home care is eminent, whether you have a child who is special needs, the availability of other assets or insurance, etc. You really need to speak with an attorney who is qualified to address your specific issues given your specific facts and desires.
Answered on Sep 06th, 2011 at 3:40 PM
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The best method is typically to have an irrevocable trust created, transfer the home to the trust and make the kids both the trustees and beneficiaries of the home upon the passing of the parents. That way the home will not be subject to the creditors or the parents or the children while the parents are alive and upon the passing of the parents the children will inherit the property and thus pay little or no capital gains tax. If the house is outright gifted to the children, not only is all control of the home lost but the home itself could be lost to the children's creditor/spouse and they may have to pay capital gains taxes when they sell the house.
Answered on Sep 06th, 2011 at 3:40 PM