Dad is now in assisted living and his house is in life estate then to me when he dies. I cant afford to keep the house sitting with no one in it. It was put in life estate 10 years ago to me and i have paid the mortgage on it since then. Can he give me back the life estate so i can sell it and still get medicaid assistance without them coming after the property?
Actually not assisted living he is in a nursing home. I got the house in a bankruptcy settlement with the state of Florida vs my father. My dad didn't have the money to pay off the bankruptcy so i took a mortgage out on the house.
Well, I disagree with the other answers. The whole situation needs to be looked at by an experienced elder law attorney. Dad needs to qualify from an income test, asset test, and medical test before he can get Medicaid assistance. The answer is not a yes or no answer. But, if all those three tests are met and the "other facts" are correct, Dad CAN deed over his life estate without penalty. Again, not a yes or no answer, however.
You need to speak with an attorney who practices in Medcaid planning. A life estate is an exempt asset for Medicaid purposes. However, if your father deeds the property over to you, then it will no longer be an exempt asset and could very well trigger a penalty or disqualification of his Medicaid benefits.
Elder Law Attorney
I agree with the other answer. You need to consult with an elder law attorney. If your father transfers the property to you, it could be considered a gift. Uncompensated transfers, or gifts trigger a penalty period for Medicaid eligibility. There may be other ways to resolve your problem, and maintain your father's eligibility for Medicaid. An elder law attorney can help you explore those other options.
I agree with the other two responses. There is also the possibility that you can obtain a POA pr consent from your father and then proceed to rent out the home.
Matthew Johnson phone# 206.747.0313 is licensed in the State of Washington and performs bankruptcy, short sale negotiations, and estate planning in Whatcom, Skagit, Snohomish, King and Pierce counties. The response does not constitute specific legal advice, which would require a full inquiry by the attorney into the complete background of the facts and circumstances surrounding this matter; rather, it is intended to be general legal information based on the limited information provided by the inquirer; it This response also does not constitute the establishment of an attorney-client relationship, which can only be established after a conflict of interest evaluation is completed, your case is accepted, and a fee agreement is signed. Johnson Legal Group, PLLC
Mention this posting if you call and we will provide a telephone consultation at NO charge.
J. Garry Rooney
Attorney at Law
Rooney & Rooney, P.A.
2145 14th Avenue, Suite 20
Vero Beach, FL 32960
(772) 778 5400
(772) 778 5290 (fax)