QUESTION

My father recently passed away and my mom has her home where she lives and 33 acres of land plus life ins policies on herself.

Asked on Jun 24th, 2012 on Real Estate - North Carolina
More details to this question:
We are trying to make educated decisions as a family. Would it be wise to divide up her property now? The land that she owns was inherited. We want to protect her assets from any future nursing home costs. One attorney suggested a trust. Could we not just split up her assets among the children rather than enter into an irrevocable trust and acheive the same results?
Report Abuse

1 ANSWER

Real Estate Law Attorney serving Anniston, AL at Isom Stanko & Senter, LLC
Update Your Profile
It is true that a person in America can sell his/her property or give it away as he or she chooses.  But if the purpose in making such a transfer is to avoid the requirements of Medicaid laws, care must be taken.   Medicaid law basically says that we all have to spend our own assets down to pretty much nothing before we can make application for public assistance -- that's what Medicaid is.  It would be considered a fraud on the government for a person to give his/her property away and then apply for Medicaid assistance.  But if the gift was made more than 5 years prior, then there is no such presumption.   So, if she is willing to give up her ownership interests now, she has the right to do so.  But you will have to wait and seen then whether she can make it for 5 years before there is a need for Medicaid help.  (And this assumes, of course, that the 5 years threshold will not be changed in the future.)  
Answered on Jun 26th, 2012 at 8:54 PM

Report Abuse

Ask a Lawyer

Consumers can use this platform to pose legal questions to real lawyers and receive free insights.

Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.

0 out of 150 characters