My grandparents finished estate planning last year by executing a lady bird deed, in the state of Texas.
I have a situation at home which an uncle is financially exploiting my grandmother. And He is pushing for them to sign the deed to him. (Thats not going to happen while my grandfather is alive)
House is currently titled to grandfather, but grandmother technically owns 50% of it because it is her community property.
Grandmother has agreed to revoke her interest in the house and give it to her husband (my grand father), in case grandfather dies in the future and uncle creates trouble.
Grandfather will then execute new lady bird deed, which he grants (me) once he passes away.
Grandmother currently does NOT use medicaid, but in case in the near future she does need medicaid, would this be a red flag? would she be denied an a penalty period be raised?
I know you can transfer your house to your spouse without any penalty. However, tricky part is once grandfather dies and house goes straight to me, while grandmother is alive. would that be a problem?
I talked to an elder law attorney just an hour ago, and she said that should not happen, and her firm does these types of transactions all the time for medicaid planning. However, I am skeptical.