My wife is listed as the beneficiary for her parents' property. Her parents have decided they want to relocate to a mobile home on the property. They are wanting to sell the house for about half of it's estimated worth to us. They need the money to purchase and set up the mobile home. Should we purchase the home at a bargain or should they gift us the house and then we refinance it for cash and pay her parents the money they need to purchase the mobile home?
Actually, you really need to spend the relatively small amount it would take to consult and hire a real estate lawyer in your vicinity. If the house is worth less than $22000 then do the gift and hope the parents don't become dependent on Medicaid for six years. If it is worth more you should pay them and hope they become dependent on Medicaid of at least six years, unless you pay the full fair market value. I would think the determinative factor would be what the parents are willing to do since it is their house. Maybe I am reading this wrong. If you wife is a remainderman that is a future interest she has no present right to the property, but the market value of the parent's life estate can be ascertained. There is a nice pamphlet put out by the Medicaid department that has the mathematical formulas for this undertaking. If you wife is just on her parent's Last Will and Testament, she has no legally recognizable interest in the property whatsoever, she only has a mere expectancy.
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