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Dad in assisted living, house in life estate, i own the mortgage on property

Melbourne, FL |
Filed under: Estate planning

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.

Attorney Answers 5

Posted

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.

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Thank you Mr Peterson. I believe we have a conference call appointment in the morning. This is Scott R

Posted

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.

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Posted

What if he sells the property?

Stephanie Sauer Woods

Stephanie Sauer Woods

Posted

If he sells it, then the sale proceeds could be considered a countable asset that would likely bring his countable assets over the $2,000 limit. The sale proceeds would either have to be spent down in the month they are received or placed in a special needs trust. You have to be really careful with the spend down approach. It would do you good to set up a consultation with an Elder Law attorney to set out an appropriate plan and to properly know the options that can be explored in this situation.

Posted

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.

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This is in Melbourne fl. I have a buyer ready to take our property. It's in unlivable conditions not suitable for any normal people to live in. He completely destroyed the property. I can't afford to do anything to do it either, and now, why would I if Medicaid comes after it either way.

Brittany Green Gloersen

Brittany Green Gloersen

Posted

If your father has a life estate or an enhanced life estate, the property is his until he passes away. Therefore, if he sells it he will have proceeds that put him over the asset limit, if he transfers it to you it is a gift. As previously mentioned, depending on the facts, there may be other options to resolve your problem. You need to meet with an elder law attorney in Melbourne. For your information, Medicaid does not "come after" homestead property.

Posted

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

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Posted

Talked to a lawyer, the last deed is 8yrs old and he is 86. My father hasn't owned the property in over 13 years. Look back is 5 and his future interest is calculated on life expectancy which is minimal. Just need to put the life estate release on Medicaid application and all will be good.

Asker

Posted

Talked to a lawyer, the last deed is 8yrs old and he is 86. My father hasn't owned the property in over 13 years. Look back is 5 and his future interest is calculated on life expectancy which is minimal. Just need to put the life estate release on Medicaid application and all will be good.

Posted

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)
Attorneys@RooneyAndRooneyLaw.com
www.RooneyAndRooneyLaw.com
www.VeroLawFirm.com

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