I take care of my father, live in, for now almost 2 years. His house is in his name. He wants to leave the house to me. Any suggestions?
Would adding my name on with right of survivorship protect his house and allow me to remain in it should he need Medicare/Medicaid in an outside facility.
If you are anticipating possibly needing Medicaid, do not do ANYTHING with large chunks of Dad's money without consulting an Elder Law attorney. And especially don't let him give anything away, which signing the house over to you would be. During the time you were taking care of him, did that enable him to stay home instead of going to a nursing home? In some situations that entitles the child to the house.
Please consult an attorney (with your dad's money, because this is on his behalf). I'd hate to think of you regretting something down the road that could be prevented now!
Mrsbill, I wouldn't add my name onto a Deed of a parent's house. Down the road when the time comes to sell the house, you will face Capital Gain Taxes where the bases for the tax goes all the way back to when your Dad bought the house.
There might be an issue with a Gift Tax that Dad may have to pay because a house is a huge gift.
If Dad places the house in a Will, then the bases just goes to the date of when your Dad passes and what the value of the house was on that date.
How I wish everyone had a crystal ball to see into our parent's future. Even if you do add your name to the Deed, you have no way of knowing if Dad might need to use Medicaid [which is different from Medicare] down the road within the next 5 years. If he does, your name on the Deed won't mean anything. Medicaid will view that as a "gift" and deduct that amount from what Medicaid would pay to help your Dad in a Nursing Home.
It would be much better to speak to an Elder Law Attorney about this, as each State has their own rules. And with Medicaid, same thing, each State if different. An Elder Law Attorney knows how to navigate the maze called Medicaid.
You'd better get professional advice; but as I understand it, unless you are your father's dependant, I don't think so. Or not unless he gives you the house now, and then lives in it for another five years clear before he needs to make a Medicaid application.
Other posters will know much more, I'm sure they'll be along in a minute.
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Please consult an attorney (with your dad's money, because this is on his behalf). I'd hate to think of you regretting something down the road that could be prevented now!
There might be an issue with a Gift Tax that Dad may have to pay because a house is a huge gift.
If Dad places the house in a Will, then the bases just goes to the date of when your Dad passes and what the value of the house was on that date.
How I wish everyone had a crystal ball to see into our parent's future. Even if you do add your name to the Deed, you have no way of knowing if Dad might need to use Medicaid [which is different from Medicare] down the road within the next 5 years. If he does, your name on the Deed won't mean anything. Medicaid will view that as a "gift" and deduct that amount from what Medicaid would pay to help your Dad in a Nursing Home.
It would be much better to speak to an Elder Law Attorney about this, as each State has their own rules. And with Medicaid, same thing, each State if different. An Elder Law Attorney knows how to navigate the maze called Medicaid.
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Other posters will know much more, I'm sure they'll be along in a minute.