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Bonnie Repp
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Post subject: Enhanced life estate deed |
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| I did not give you enough info. If I use the above instrument to deed a homestead and surrounding property to my son, can bankruptcy still make claims on the above property? Our credit is fine but I am just thinking about the economy. Thank-you. |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Post subject: |
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Hi Bonnie Repp,
You can file bankruptcy after 1 year of recording a ladybird deed. If you file bankruptcy within a year of recording a enhanced life estate deed (ladybird deed), then it may be considered as a fraudulent transfer.
As far as Chapter 13 bankruptcy is concerned, you will be able to save the property however in Chapter 7, you may or may not be able to save the property from the creditors.
If your home equity is higher than the state exemption, then the bankruptcy trustee will sell off the property and give you the exempted amount and pay off the rest to your lender after deducting his fee. To know more about exemptions, check out the following link:
http://www.mortgagefit.com/bankruptcy.html#keep-home
You should remember that though you file a enhanced life estate deed, the property will remain yours till you are alive. It's after your death that the property will go to the beneficiary.
_________________
Procrastination is the enemy of your financial sucess |
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Mary Snyder
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Post subject: Life estates |
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You say a Ladybird deed entitles one to the "step up basis". Does a regular life estate have the same entitlement in California?
Thank you! |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1602
Location: MASSACHUSETTS
149.70 Dollars($)
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Julie
Guest
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Post subject: Ladybird Deed and creditors |
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| NEED QUICK ANSWER PLEASE! mom has a ladybird deed and her kids are on it. If mom passes away, and one of the kids has a judgment against them (creditors chasing them) can they put a lien on the house if none of the other kids have a judgment against them? |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 1778
Location: MICHIGAN
266.05 Dollars($)
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Post subject: |
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Hi Julie,
Yes, the creditors may place lien on the property if one the kids has a judgment against him/her. This is because, like all other siblings, he/she will also be an owner of the property after their mom passes away.
Thanks,
Jerry |
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LoveBug916
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Post subject: claiming home of deceased person, no will no heirs home paid |
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| Can I claim the home of a deceased person and take over if there is no will, no heirs, no one handling estate? Home is paid for, can't find the deed. Owner was a bit mentally ill never wanted anyone to help out & now has passed away leaving home with no one. Will the home go to the state and how will they ever know he had property if no heirs are around to claim home? |
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C Allen
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Post subject: |
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| if owner is currently in a nursing home with medicaid benefits & wishes to sell home if it is made into a lady bird deed to his heirs can it be sold & money go to heirs prior to death & not be subject to medicaid taking the proceeds ? |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Post subject: |
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Welcome,
To LoveBug,
If you are the heir to that property, then you can file an affidavit of heirship at the county recorder's office to claim the property. I guess, before recording the affidavit of heirship they will investigate whether you are the legal heir to the property or not.
To C Allen,
As far as I know, a ladybird deed doesn't make you ineligible for Medicaid as long as you express your intent to return. And even if you do not express the intent to return, your home may be considered as an exempt asset for Medicaid eligibility if your spouse or relative occupies it. But I don't think you will get Medicaid benefits if you sell off the property.
_________________
Procrastination is the enemy of your financial sucess |
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msm
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Post subject: LADY BIRD DEED--PENALTY OR NO PENATLY IN TEXAS |
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| I need to know if there is indeed an attached medicaid 'transfer' penalty when you have the lady bird deed, or if this penalty can NOT be attached if you have the lady bird deed. Plz. someone answer this question. I have read conflicting statements on this site, on this subject. One says yes, one says no....? What is the truth regarding this subject? This involves a home, medicaid, and nursing home in the future. This is in Texas. |
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jmessyd
Joined: 11 Mar 2009
Posts: 3
1.91 Dollars($)
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Post subject: medicaid penalties regarding lady bird deed |
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| Is there a medicaid penalty for tranfering a home to a chid when the lady bird deed is used? Does it matter if the deed is made before one files for medicaid or after? (in Texas) |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Post subject: |
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You can use a ladybird or enhanced life estate deed in order to transfer your property to the heirs. It does not make you ineligible for Medicaid as long as you want to come back to your property. Even if you do not come back to the property your home may be considered as an exempt asset for Medicaid eligibility if your spouse or relative occupies it. To know more whether Ladybird deed causes Medicaid penalty, check out the following page:
http://www.mortgagefit.com/texas/ladybirddeed-medicaid.html
_________________
Procrastination is the enemy of your financial sucess |
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snorkelcat
Joined: 04 Mar 2009
Posts: 3
Location: FLORIDA
1.65 Dollars($)
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Post subject: gift tax owed when property quitclaimed |
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how to you figure the amount of gift tax owed on the amount over the annual $12,000 exclusion please? I want to quickclaim my partner to my condo deed, and visa versa. Both condo's $75,000 purchase price, 3 mths ago. We just want to add each other's names to our properties. We each have our own mortgages. We should have done this at purchase, but didn't . How should we go about this please.
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SNORKELCAT |
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Guest
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Post subject: |
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| You will have to deduct the $12,000 (annual gift exemption) from the total amount of gift received. Taxes will be calculated on the amount that you receive after deducting the $12,000. |
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Risa
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Post subject: Gift Tax |
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To Snorkelcat,
You are allowed to give a total of $1,000,000.00 over the course of your lifetime without owing any gift taxes. However, if the amount of the gift in any one year exceeds the $12,000.00 annual exemption, you will simply have to file a gift tax return with the IRS (I've forgotten the form number). But you will NOT owe any taxes. This is how it works when giving a gift of cash, so I assume that it probably would be the same with property. But I also know nothing about quickclaim deeds. You might want to consult an attorney and/or accountant just to be sure. Also, the IRS is very helpful if you call them and ask for their department that specializes in estates and/or gift taxes. I usually call 800-829-1040. Hope this helps. |
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