life estate deeds

Your question is really about the Medicaid rules in your State. If your mother enters a nursing home, she will either have to pay the bill herself, or if she cannot, then apply for Medicaid benefits to pay the nursing home bill. In many states, ownership of a house does not disqualify a person from getting Medicaid benefits. Some states will allow a house held in a "life estate" to pass to the surviving child/owner without any Medicaid claim. Some states will make a claim against the life estate after the death of the holder. You should see an Elder Law Attorney in your area to get the specific answer you need.

Your mother has a life estate to the property whether she resides there or not. Without her joining in a deed or mortgage, you can neither sell or take a loan on the property without her. Both of your signatures are required. Once she becomes fully incompetanet she will not have capacity to sign a deed or mortgage and you will have to wait for her to pass to get good title in your name. (This is usually done by just recording an affidavit or her death and a copy of her death certificate to show her life estate has expired. The procedure varies by state.) If you plan to make any transaction or want the ability to do a transaction including lease the property to someone you should have a durable power of attorney prepared, while she is still competent, authorizing you to act for her (or someone else of her choosing) . You should consult an attorney experienced in Elder Care law as you may have to do medicare planning for her due to her age, condition and the fact that she has some assets. This attorney will also be able to handle the power of attorney and any will planning that may be needed. DO NOT DELAY because once your mother becomes totally incompetent you are stuck with some big headaches.

There is a lot of sound advice here. I'd like to make one more very important point about the timing in your situation. If your mother transferred any ownership rights in that property (i.e., put you on the deed) within the last 5 years, NY state can collect medicaid benefits paid within this time period by placing a lien on the entire property, not just your mother's life estate interest. The effect is that your interest is not protected at all.

It really seems worth it to contact a good estates attorney to handle this matter for you.