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She recently was put in a Memory Loss Assisted Living, I plan on putting the home for sale - once this is sold do I have get to keep my half or does it all go for costs to the memory unit?

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Sherbon, by "putting" your name on her home, do you mean she executed a warranty or quit claim deed from her to you, so that you now hold title to the house? Or do you hold title jointly with your mother, with you being named with rights of survivorship so that on death the title passes completely to you?

I think the issue of whether or not costs go to the Memory Care facility arises from your mother being a Medicaid recipient; is this correct?

Are you planning on selling the house now? If so, then you'll either have to be sole fee holder, or you'll have to be proxy under a DPOA so that you can sign for your mother. However, if your mother is on Medicaid, you may cause a breach of its requirements if you sell the house now.

I'm a bit confused though on who holds title, whether your mother is getting Medicaid, and when you intend to sell the house. Could you please clarify?
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When was title changed? Were you her live in caregiver for a period of time? If so can you document that your care was needed and without it she would have required a nursing home?
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You also need to be concerned about taxes. The bottom line is that if you inherit property and later sell it, you pay capital gains tax based only on the value of the property as of the date of death.

However, if your mom adds your name to the deed this is considered a gift & you might owe gift tax. Also, the original cost of the house when you mom bought it now becomes your cost.

Say mom bought a house for $100,000. Now it is worth $200,000. If you inherit your cost basis for the house is $200,000. If mom adds your name to the deed your cost basis for the house is $100,000. You will owe capital gains on any amount over the original purchase price.
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