Elderly Care & Property
My grandparents purchased a house and it has been paid off (no mortgage). I currently ''rent'' from them and they want to ''will'' me the house upon their death. The question is, should they sell me the house (to avoid it being considered assets in case they need to go into some type of nursing home or assisted living) to avoid the house being taken and put in the will that this ''mortgage'' is paid in full upon their death? Would this protect the property?
1 Answer from Attorneys
Re: Elderly Care & Property
I absolutely recommend this. They can sell you
the house and take back a mortgage for a relatively
low value. They can also make gifts to you of
some or all of the mortgage payments, and/or pay
rent to you if they live there after the sale.
For example, if you buy the home for $50,000 and
the payments on the mortgage are $500, you can
rent them space for the fair market rent, say
$450. Obviously , this example is very simplified.
for Medicaid you need to establish fair market
value for the sale, fair market value for the
leaseback, and have everything properly documented.
Our firm has experience with this type of
transaction and we have successfully structured
these transactions for others. Please give us a
call for a no-obligation consultation.
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