OK here's the question let me see if I can word this right. My sister's inlaw's want to gift her and her huband their house with them as living rights. My sister has her own home so what does this mean as they have no desire to move my sister says she is unsure what they are getting at she thinks that if they "gift" the house to her and her husband the state will not take it after several years should they go to a nursing home and at their death the house would be theirs is she correct ?

Slowand easy

Most states and the feds will take a look into your history if you go on medicad. That history, window, recently got bigger, since the feds don't like loopholes. Your sister will also face some tax burden on this "gift". I don't want to sound rude but the feds would not call this a gift, they see it as a dodge. The house would be their's, based on your info, when the gift was done, not waiting for her death.

Most states and the feds will take a look into your history if you go on medicad. That history, window, recently got bigger, since the feds don't like loopholes. Your sister will also face some tax burden on this "gift". I don't want to sound rude but the feds would not call this a gift, they see it as a dodge. The house would be their's, based on your info, when the gift was done, not waiting for her death.


Thanks for the information I will tell her These are honset hard working people and they would never ever do anything wrong I quess they were just trying to make sure the house stayed in the family They do have an appt with a lawyer on Friday as I said before they were just talking about it and I quess my sister had some concerns hopefully the lawyer can and will advise them what to do

Thanks

There is a time frame in the law, ( sorry not up on it 5 ot 7 years) that if the house is transferred prior to that, then if they go into a nursing home, they can not come back, but if it is before that time, any transfer and evevn sales will be looked on to see if there was any fraud.

The main thing they really need to do is find a family member who really wants to buy it, and have it sold with life time estate ( right to live in home) this life time estate lowers the value of the home since there is no usage of it for an undetermined time.

There is a time frame in the law, ( sorry not up on it 5 ot 7 years) that if the house is transfered prior to that, then if they go into a nursing home, they can not come back, but if it is before that time, any transfer and evevn sales will be looked on to see if there was any fraud.

The main thing they really need to do is find a family member who really wants to buy it, and have it sold with life time estate ( right to live in home) this life time estate lowers the value of the home since there is no usage of it for an undetermined time.


Thanks Can you explain life time estate? I 'm not very up todate on these things

Slowandeasy

That is the name for what you described, it is "sold or given" to someone else but the old owner is allowed to live their for their life time.

Your state may have nother term for it, that is what is used here.

The only drawback I see to selling the house to a family member is that the proceeds will be an asset that could likely bump her out of medicad.