Transfer mother's house into my name?

Ben, I would back check what that attorney told you.

I had 2 elder law attorneys give me bogus advice.

I believe that the lady bird transfer is for a live in caregiver and with mom having been in a facility that changes everything.

You guys are obviously going to do what you want, but you should back check all your information before you proceed.

Quite frankly, it's situations like this that are draining the system and your MIL benefitted from taxpayers and her assets should pay as much of that back as possible. You may need the system one day only to find there is no help available. Just saying.

consult an elder law attorney. It will be difficult or impossible to borrow money on a property with Medicaid involved. Perhaps you and siblings could pool money for funeral expenses.

1031 exchanges are complicated. Time limits on everything which if you miss a deadline you lose all tax advantages and pay penalties.

Benyamin, with a LadyBird deed I believe you are seeking "life estate".

Since this property will not be your "primary residence", but instead an Investment Property, this is a whole different ballgame. Please check with an Estate attorney. A LadyBird deed may or may not be possible.

If a LadyBird deed is not in the picture and Mom signs over a Quit Claim Deed, since you plan to use said property as an Investment Property, the IRS rules are different. More paperwork to turn in at tax time.

When you do sell the house later down the road, the basis used to figure Capital Gain will be the house value back in 1995 when your Mom inherited the house.

To keep from paying higher Capital Gain taxes right away for Investment Properties when you eventually sell, you can use what is called a 1031 rollover which means you need to put the profits into another Investment Property. I know, this is getting quite squirrely, as a 1031 is very complex.

Thus, get all your ducks in a row. You have a lot of questions to ask the experts before you do anything.

Looks like a lady bird deed is the best route in my state. Thanks for the help.

I would also like to point out for potential readers that there is no lein placed on any property from Medicare in MI until after death and probate court. So a ladybird deed still works until they change the law there.

You need to talk to an attorney that deals in trusts, wills, estates etc, You need to be very careful and know what your mothers financial health is. Get it taken care of ASAP.

If Medicaid has already placed a lien you would not be able to transfer the deed without satisfying the lien. Have you checked for that? However, if Medicaid does intend to recoup through MERP and it shows up that the house was transferred right before she died it could get very awful to deal with.

I would contact her social worker at Medicaid and ask them. They can help direct you and keep things legal. It is the best way to go, because they will find out everything anyway.

The only way to possibly prevent the Medicaid lien is to pay them whatever they have paid over the years for mom's care. There are no exempt assets once Medicaid is in the picture. You need to see an elder law attorney.

Benyamin, if your Mom has Alzheimer's/Dementia she wouldn't be able to sign over what is called a Quit Claim Deed where the house will go to your name. Mom would need to be able to understand the legal language in the document.

One major draw back of placing the house in your name now is that any profits made on the house when the time comes to sell, the basis for capital gain income tax will go all the way back to when your Mom first bought the house.

If you inherit the house after Mom passes, then the capital gain income basis will only go back to the date of when you inherited the house. That can be a huge difference if Mom had purchased the house many decades ago.

And if Medicaid is involved in any way, shape or form, and if Mom is in a nursing home where Medicaid is paying for her care or had been caring for her care, then Medicaid is the first one to stand in line to be reimbursed for Mom's care from the equity in her house.

Ben, if she is on Medicaid, there will be a lien on the house.

You dont want to transfer anything until you've consulted a CERTIFIED eldercare attorney.

Who did the Medicaid application?

Does your mother have Medicaid for nursing home care?