My father's will stated that my sister and I split everything 50/50, but he kept the title in his name. My mother's name was month mentioned in the will. At some point between my sister transferring the title of the house to our names and mom going in to a nursing home, we found out she was entitled to $50,000 of dad's assets. Since there was no money, mom was entitled to a percentage of the home. Now all 3 of us(mom, sister and i) are all on the deed, however moms share is 36-38% and my sister and I split the remainder 50/50. As I mentioned, mom is in a nursing home. Upon her death, if I am living in the house(which I have been for 3yrs now), will my mom owe Medicaid or will my sister and I get the house free and clear? I have no idea if there is a will for my mom stating joint tenancy with right to survivor or anything like that.
I also wonder if my sister can legally event me from the house if I am(and have been) paying all the utilities and taxes despite a verbal agreement between us being broken?
It would be important to see the exact titling on the Deed to your mother, you and your sister. For example, if the three of you own it as joint tenants with right of survivorship, than upon your mother's death, her interest simple disappears, and you and your sister then own it. It is unlikely that Medicaid could make a claim to your mother's share of the house, because it no longer exists. On the other hand, if your mother and you and your sister own it as tenants in common, then when your mother died her percentage ownership becomes part of her probate estate. In some states it would be subject to being used to pay her creditors, including Medicaid.
All co-owners of a property have the right to use it and occupy it. And all owners have a duty to contribute to the expenses, unless the property is being rented by one owner, and that owner is retaining the rent.
As an owner of the home, you can't be evicted but your sister could bring an action to force a sale of the property. You may be able to receive the home as a caretaker child if you lived in the property 2 yrs immediately before mom went into the nursing and you provided care to mom. Such a transfer IF, proper under the circumstances and done properly since there are 3 people on the deed, would be an exempt transfer and not affect Medicaid eligibility. How the deed is worded will affect any potential Medicaid claim. However, you should absolutely consult with an experienced elder law attorney before taking any steps. There may be other facts or factors that could impact and change this or any other advice to you.
I would recommend placing the home into a revocable trust. The trust instrument can spell out who gets what. There is no Medicaid penalty for such a transfer, but it will protect the home from Medicaid asset recovery after your mother's death. You will need to consult an elder law or estate attorney to help you do this.
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