He wants 110000 for his house. Can I get a loan for 50000 so he can pay off what he wants then pay him a cash mortgage monthly. Or can I buy for 1.00$ then give a110000 gift. Is that possible
I strongly suggest consulting with an experienced local Elder Law attorney before you do anything. Your use of the term "rest home" doesn't tell us whether you are talking about father going into an assisted living facility or a skilled nursing facility and the distinction could be extremely important. Most people who live in skilled nursing facility for any length of time will eventually need to apply for Medicaid assistance due to the high cost of skilled care. Medicaid has a five year "look back" period from the time of application and a gift of the home or a sale for less than "fair market value" could trigger a VERY costly penalty during which Medicaid would likely not provide assistance. The primary residence is likely an "exempt" asset for Medicaid eligibility purposes so it may not need to be sold; however, there is also a Medicaid "estate recovery" issue to be well aware of. These and MANY other things are issues that you certainly ought to discuss with a local Elder Law attorney who is fully familiar with all of the many complex issues that are involved with paying for institutionalized care and the often-complicated issues of Medicaid eligibility. These are NOT Do It Yourself projects and even many general practice lawyers don't understand Medicaid issues and make mistakes that can prove financially devastating. Run, don't walk, to an experienced Elder Law attorney before you take action here. I'm going to retag your question to the Elder Law practice area so that you may get input from Pennsylvania lawyers who deal with these issues every day. You can find an appropriate Elder Law attorney in your local area by using the "find a lawyer" tab here on Avvo. I wish you and your father the very best of luck.
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You definitely need to speak with an elder law attorney. If your father was a veteran and, depending upon his financial situation, he might qualify for benefits that could help him pay for his care. The type of action you are contemplating is the kind that people try to do without the assistance of a skilled elder law attorney and they end up being sued by the facility or by the Commonwealth of PA. Believe me, lawyers who do not practice regularly in this area do not know how to handle this situation, much less someone who is not an attorney. Find an experience elder law attorney in your area and get help now. If you do not and you make a mistake, the worst case scenario is that your father cannot pay for his care and you are the defendant in one or more lawsuits. That will be more costly than getting an elder law attorney to help you up front.
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I agree with the response of Attorney Davis. There are a number of facts which need answered before an elder law attorney could possibly advise you as to the best course of action. Urge you to consult with the attorney before you take any action.
Mr. Geisenberger is a Pennsylvania-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Jacques H. Geisenberger, Jr., P.C.,does not constitute legal representation, nor is any information you provide protected by attorney-client privilege.
Considering your father is moving into a nursing care facilities, your options might be more limited. I am assuming from your post the true fair market value of the property is $110,000. That is an important point of consideration. I also assume, that he does not have much in the way of financial assets. If that is true, you will have to get a mortgage to pay off your father's existing loan. That will leave $60,000. You can either get a larger loan so that you can pay him more of that $60k balance or use your own cash to pay the balance.
I suggest meeting with an Elder Law attorney as there may be additional opportunities such as exempt transfer to family caregiver, "reverse half a loaf" crisis planning, $500/month gifting and more. There are definitely planning options, there is just too much to review in this type of forum.
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