Legal Question in Real Estate Law in Alabama
Real Estate
which is the best way for a 103 yr old mother to turn her land over to her children to keep a lein from going on it by a nursing home if need be? She wants to give it to them by quick claim deed but that may mean a 5 yr. period for collection if needed or should she sell it to all the children right out and change the deed over to them?
1 Answer from Attorneys
Re: Real Estate
Unless mom sells the property for a fair market price, she will be subject to potential penalties on the transfer, should she go into the nursing home and need medicaid, assuming the transfer falls in the 5 year lookback period. If the children are agreeable to purchase the property, medicaid will allow you to use the assessed value that the tax assessor is showing as a fair market price. Done that way, mom most likely won't have to recognize a taxable gain unless she has exchanged her principal residence within the last couple of years.
Good luck!
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
