We put my mother's home into mine and my sister's name at the advise of her lawyer 12 years.
Full Question:
We put my mother's home into mine and my sister's name at the advise of her lawyer 12 years ago due to her health issues. She is now 83, serious heart issues, but still living a semi-active life. We've been told when she passes and we sell her house, we will be have to pay taxes based on the full price of the house, since her lawyer wrote up the papers with the house being sold to us for $1.00. We don't want to put it back into her name in case she has to go to a nursing home. What should we do?
03/30/2011 |
Category: Wills and Es... ยป Property of ... |
State: Indiana |
#24530
Answer:
There is not a lot you can do. This is the gamble you are taking. If your mother had to go to the nursing home, she could not receive federal assistance until all her assets were all used up. This happened to my grandmother. Believe me the assets get used up very quickly. Since you have done it this way, the house is in your name, and you will at least inherit something - even if you have to pay some tax on it when sold. Talking with a local estate attorney (who is also likely a tax specialist) may present you with some further options, but this is the general outline. Best wishes.