That article was most informative. Thanks for the link.
Most of us geezers are well aware of the property liens and have put property into a trust.
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I have 6 siblings, several years ago, My mom, age 93 decided to put her house in my sisters' name. I didn't know about it at the time and normally I would not have been against it, because I already knew what my sisters found out later.
When they decide to sell my mother's house, to divide up the proceeds, they will be liable for taxes on the sale of it, since it is not their primary residence. They put it back in her name.
So far mom has gotten along just fine without medicaid. She has 7 children who love her and help with her needs. That's the way it's supposed to be.
No old person should have a will. Put your money, accounts and property into a revocable trust or else the probate lawyers will steal 5-10% of the estates value via the probate process. And if dear old dad (mom) had property in two states (like a summer home) you will be doubly screwed. Where I am you have lawyers who will set up a revocable trust for $400. But if you live in a state where it costs $1500 it is still worth it
When your friendly family lawyer offers to write your will for free....It is all because he will be probating it one day and getting his cut of your estates final value. My father set up a revocable trust 6 months before he died. Me and my siblings are grateful for this. The property could be sold right away if we had wanted. Under probate you cannot sell property until the probate process is finished 9-12 months down the road. So you can have a condominium and someone begging to buy it with cash....but they cannot so you lose out. By the time it has gone through probate the buyer is no longer there plus you have been stuck paying taxes and monthly condo fees on it
a trust does not prevent the government from recooping money spent thru medicaid.
If you have the asset when you apply or transferred it within a few years back (see lookback provisions) they can attach the asset.
Trusts are good for avoiding capital gain tax and to be specific about who does and gets what if you’re incapacitated or when you die.
Anyone involved in this situation should talk to a tax attorney or estate attorney instead of listen to people like us on the internet.