Legal Question in Elder Law in Alabama

Re: my mother's house

Sounds like you got some bad advice.

When these questions come up, it is always in the context of Medicaid/nursing home qualification. You did not mention Medicaid though, so maybe your mom isn't in a nursing home or even if she is, she didn't apply for Medicaid. If you are talking about Medicaid, the period is 60 months, not 30 months. If you are simply talking about taxes and gifting, any transfer during lifetime to another will lose the step-up in basis on the asset. When you sell you sell at your mom's original basis and would be responsible for capital gains on the difference. Basically you need legal advice. Get some help and don't rely on what Jack-legs tell you.

William G. Nolan

www.NolanElderLaw.com

Re: my mother's house

I am in complete agreement with Mr. Nolan. As of Feb 8, 2006, President Bush signed the Deficit Reduction Act of 2005. A part of that law required a "look back" from time of Medicaid application of 60 months where before 2/8/06 there was a 36 month look back for gifting and 60 months for trusts. Regardless, its all 60 months now. You do need to seek the advice of an attorney practicing in the area of Elder Law.