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Jane71 · Jul 13, 2011, 02:04 PM

My dad died a few years ago and left the home to my mom, who is now in the late/final stages of Alzheimer's and will probably pass away soon. My sister and I paid off the remaining mortgage balance with my dad's insurance money. My sister and husband moved in a year ago to help take care of my mom. They want to keep the house after my mom dies but they want it in their name now (before she dies). Since my sister and I will inherit the house equally AFTER our mom dies and she would have to buy my share out to keep it, what are our options for BEFORE she dies? I have power of attorney over all of my mom's affairs, with my sister being the alternate. Should she transfer the deed to her and her husband's name and then take out a loan to pay me for my share? We would like to avoid probate after my mom passes away, but we would also like to avoid any kinds of huge taxes on either of us.

JudyKayTee · Jul 13, 2011, 02:22 PM

Originally Posted by Jane71

My dad died a few years ago and left the home to my mom, who is now in the late/final stages of Alzheimerâ€™s and will probably pass away soon. My sister and I paid off the remaining mortgage balance with my dadâ€™s insurance money. My sister and husband moved in a year ago to help take care of my mom. They want to keep the house after my mom dies but they want it in their name now (before she dies). Since my sister and I will inherit the house equally AFTER our mom dies and she would have to buy my share out to keep it, what are our options for BEFORE she dies? I have power of attorney over all of my momâ€™s affairs, with my sister being the alternate. Should she transfer the deed to her and her husbandâ€™s name and then take out a loan to pay me for my share? We would like to avoid probate after my mom passes away, but we would also like to avoid any kinds of huge taxes on either of us.

Whose name is the house in now? That person would have to sell or transfer the property. I am guessing it's in your mother's name.

As long as fraud is not involved AND YOUR MOTHER IS COMPETENT she can deed it to anyone. I am guessing she's not legally competent.

I would not attempt this without an Attorney who would have to review your powers under the P/A and your State Laws.

I think the easier solution is to split the house when your mother dies but without knowing the State where you live it is difficult to know whether the Will would be probated.

Jane71 · Jul 13, 2011, 02:32 PM

The house is in Virginia. I think the house is still in both my parents names (after dad passed, the house automatically went to mom without going through probate). My mom is not legally competent anymore as she is in the late stage of her disease. We have general durable POA including real estate transactions and all financial transactions and bank accounts. I also think it would be easier to just go through probate after she dies and just have my sister buy me out then but she thinks it is better to transfer it now. There is no fraud involved, My sister is very trustworthy and has takes very good care of my mom and her house.

JudyKayTee · Jul 13, 2011, 02:35 PM

No, I didn't mean fraud on your sister's part. She obviously (and you) love your mother very much. I was thinking of people who transfer property in order to get around Medicaid and similar requirements. Never meant you or your sister.

If you do two deeds - from mother to the 2 of you, from 2 of you to 1 of you - you have double the filing fees, also.

Why does your sister want to transfer the house now? She may very well have an interest I'm not seeing.

Transfer from mother and father is simple - did your father have a Will that was probated?

ScottGem · Jul 13, 2011, 03:40 PM

First, Judy has a point about Medicare. But if your mom has insurance or other coverage and the house is not needed to pay her bills, then you should be OK. If not, the sale could be voided.

So the simple answer is sis buys the house from mom and you sign off on the sale with your POA. The problem is how do you get your share. The proceeds of the sale can go into mom's estate and then to you. Or you can work out some other way. I would agree to consult an attorney for alternatives.