My grandma is elderly, but totally independent renting an apartment. She finally admitted she needs a little extra help and j agreed to move in with her, so she’s buying a house. I’m investing some money into since I’ll be living there for who knows how long. We are worried about in the event she has to go to long term care I know there’s a 5 year look back and what would happen to my investment if they wanted her home? I thought they couldn’t take the house since it’s not a liquid asset and protected in a trust a non revocable one. Trying to figure out the best way to go about this. She may never end up in long term care and it may not be an issue. I know I’m not allowed to be on the deed because then it’ll look as she gifted me the other amount of the homes value. Everyone I’ve talked to has a different answer.
How old is your Grandmother?
Please know that a lot can happen between her living semi-dependently upon you in her house to needing LTC (which is medically assessed by a doctor and usually means the person is 100% bedridden or has some other profound illness or disease).
She might need the money invested in the house to pay for care that happens *before* qualifying for LTC. Many elders don't get to that phase. If she develops dementia but is otherwise physically healthy and mostly mobile, and therefore unsafe to be left by herself for any amount of time in her home... she may need to transition to AL or MC so that you can work and have a life but in most states Medicaid DOES NOT pay for this and it can be thousands of dollars per month -- more than a mortgage or rent.
My own Aunt with advanced dementia lived to be 100 (after having dementia for about 12 years). She was still somewhat mobile and fell and broke her hip and I was in the process of finding appropriate facility care for her but she kept thinking she could walk and was not ready for LTC. As it happened, she passes away in rehab (possibly from a clot from the break). Is your Grandma able to pay for AL or MC for 12 years?
And please do not entertain the notion of trying to pay for that care in order to keep the house... as she needs more services the costs increase. It is unsustainable.
So I guess a lot depends upon what her financial situation is, if she has a lot of assets and makes good SS income.
Also, if you go through with this plan/arrangement I strongly suggest she assign you as her Durable PoA (with both financial and medical authority). If she won't do this then I personally would need to think very deeply about getting tied up with her financially. An uncooperative senior with dementia is a nightmare. You may not be able to imagine your sweet Granny like this but please read many other posts on this forum regarding family trying to get out from a financial entanglement with someone who has become irrational. Plan for the worst, hope for the best. Also: forewarned is forearmed.
You can be on the deed. Thats not gifting. You are investing inbthis house so you need to be on the deed. Just make sure your paperwork at closing shows what you have contributed to the downpayment. Gifting is if she turned the home over to you.