We will need to renovate using their money and will put their name on the deed. What are the consequences to us when they need to go into a nursing home or if some catastrophe happens? Can a lien be put on our house?
Don't do it. If they want to live with you and YOU want them draw up a care agreement that will in effect pay you for the care, and pay for the renovations. Medicaid has a five year look back and will penalise the folks for a gift to you of funds for renovation.
Care agreement is only valid if it is medically necessary care based on doctor's statements. Perhaps room and board would be better if they don't need the care? Should they ever need Medicaid if their names are on the house half the value of the house would be subject to lien.
Get with an elder law attorney before doing anything! While you are there get folks documents, POA, will, etc in order!
Then there is also tax implications if you gift them half of your home. Just a bad idea all the way around.
They are moving into your house, and you will be the caregivers, the money they give to renovate the house is for THEIR use. If they weren't there, you wouldn't need to do it. IF the renovation adds value to your house, then it's incidental. I don't see any justification in adding their names to the deed.
IF they are handing you the money and say here fix it up nicely for your own use and benefit, in return, we want to be part owner of the house, then that would make sense.
In addition, there might be downsides if later on they need Medicaid or need money for AL or NH, your house will be at risk. Check with an attorney like 97yrolddmom said.
Yes. Because it won’t be your house only. It will be the home of your parents as well. Before you do anything you should speak with a certified elder attorney to protect both yourself and your parents.
Care agreement is only valid if it is medically necessary care based on doctor's statements. Perhaps room and board would be better if they don't need the care? Should they ever need Medicaid if their names are on the house half the value of the house would be subject to lien.
Get with an elder law attorney before doing anything! While you are there get folks documents, POA, will, etc in order!
Then there is also tax implications if you gift them half of your home. Just a bad idea all the way around.
IF they are handing you the money and say here fix it up nicely for your own use and benefit, in return, we want to be part owner of the house, then that would make sense.
In addition, there might be downsides if later on they need Medicaid or need money for AL or NH, your house will be at risk. Check with an attorney like 97yrolddmom said.