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Hello: my mom who is 75 years old and wants to transfer her home to me. She also wants to explore the option of selling the house first and buy a new house in my name. please advise us on what is the best course of action. Should we get the current housing transfer to a trust and sell it or after selling should we buy a new house and transfer it to a trust? She is currently healthy but wants to protect her assets in case she needs Medicaid in the future. She doesn't have any other assets. Thanks

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Tanya88, welcome to the forum. Please note if your Mom purchases a new house and puts your name only on the Deed, then Mom would become a tenant, and you become a Landlord. Oh, this came become very complex, especially at income tax time.


If your Mom pays the real estate tax on the house, she won't be able to claim the tax as a deduction on her income tax because she doesn't own that house. Those taxes are big chunks out of one's budget. Then it would be up to you to pay the real estate tax. Will Mom pay for any house repairs, such as a new roof, new appliances, new furnace or central air conditioning? You can pay for those things and write it off as a business deduction, but only if your Mom is paying rent, and the rent must be the going rate, not a deep discount. Mom would need a signed Lease that spell out the conditions.


As for putting a house she doesn't own into a Trust, doubt that is even possible. Ok, even if both names are on a Trust, to protect Mom's assets she would need an Irrevocable Trust which means she, nor you, can touch any assets in that type of trust. So if there is a medical emergency, the funds are frozen, until she passes.


I don't mean to be rude here, I never been a fan of someone trying to "hide" assets from Medicaid. Why should us taxpayer pay for your Mom's care when she has equity in a house?
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Reply to freqflyer
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I would first explore what a Medicaid facility can look like, many are 2 to 3 in a room, TV's blaring and more.

Her house is her only asset and should be used to fund her in a private pay facility, that is what the proceeds from her house should be used for, her care.

IMO Medicaid is a last option for those who run out of money.
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Reply to MeDolly
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Since you say the home is her only asset….. Be aware that many facilities that accept Medicaid will favor admitting a patient who can pay privately ( at first in the beginning at least ) anywhere from a few months to a year or more before needing Medicaid . Expecting to get into a facility on Medicaid right off the bat will likely limit her choices of facilities .
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Reply to waytomisery
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We are not attorneys
We are not financial advisors

Any transfer of property by an elder to another may jeopardize their ability to get governmental assistance when/if it is every needed.
It is time to see an Elder law attorney with all of your questions.
We all wish you good luck.
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Reply to AlvaDeer
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While it's sweet that your mother wants you to have her house after she dies, or before, if that is her only asset then that is to be used for any future care she may need, before she would require to apply for Medicaid.
It never ceases to amaze me how many people want to try and skirt around using their own assets to pay for their care, but would rather instead take advantage of our government to pay for their care when your mothers home could be sold and those proceeds go towards any future care she may need.
Medicaid is for those folks who really need it and your mother more than likely will need it down the road, but for now she should have to use her own assets(home) first before taping into government funds.
That's the way I look at it anyway.
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Reply to funkygrandma59
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Please consult an attorney familiar with Medicaid rules in your state. Transfer of an asset like home is subject to a five year lookback in most states. We are group of caregivers that can only give very general advice without particulars of your situation. If mom transfers house to you, you will possibly incur capital gains if you sell it, and mom cannot pay for house she doesn’t own after transfer to you without Gifting lookback. Very complex and gifting reporting can arise for income tax purposes too
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Reply to Guestshopadmin
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