medicaid/quit claim

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tina

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Post Posted: Tue Oct 09, 2007 12:41 pm    Post subject: medicaid/quit claim
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my mom drew up a quit claim giving her house to me. However we were advised not to file it as that would cause problems for her medicaid and the small bit of assistence she gets fromt the state. if I filed the deed, woudl i then be responsible for the taxes? back taxes? would the state then take away her assitence? How long can do i haev to file this before in becomes invalid?
Mac_7

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Post Posted: Tue Oct 09, 2007 9:32 pm    Post subject:
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If you file the deed, you won't be responsible for the gift tax related to the quitclaim. The gift tax has to be paid by the person who is quitclaiming his/her interest in property and in this case, it's your mom who needs to pay. But do check out from the concerned authorities as to whether filing the quitclaim would affect your mom's eligibility of getting medicaid.

Regarding the back taxes, you need to pay them after you assume ownership rights on the entire property.

For the validity of the quitclaim deed, you need to contact your County Recorder or Registrar of Deeds, as you say, and ask them what's the period for filing up to which the deed will be valid.
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Post Posted: Wed Oct 10, 2007 12:58 am    Post subject:
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Hello Tina,

It is true that recording the quit claim will make her ineligible for the medicaid but at the same time you have to be careful about the time period for which the deed remains valid without recording it.

You will have to pay all the taxes after you have ownership rights to the property.

To know more about the effects of quit claim on medicaid, you may look here http://www.mortgagefit.com/know-how/quitclaimedhomevsmedicaid.html
Jonny

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Post Posted: Wed Oct 10, 2007 1:46 am    Post subject:
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Yes, if you file the deed you will be responsible for the taxes and back taxes also and your mother will not get the assistance that she is getting now from the states. You can consult with an attorney and make such a deed by which you can own the property after your mother's death. I think that will solve your problem.
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Post Posted: Fri Oct 12, 2007 9:32 am    Post subject: Tony Golden
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Hello Tina,
In response to your question I would like to suggest the possibility of a reverse mortgage for your mother. I'm not completely sure of what you are trying to accomplish but it seems like your mom wants to transfer the home to you so she can protect the long term asset and the concern of liens in case anything happens. Using a quick claim deed to my knowledge does not protect the home as each state has a look back clause to prevent people from moving assets to avoid this type of situation.

There are the options of putting the home in a trust which are used many times in these situations. I would recommend speaking to an elder care attorney. They normal do free initial consultation. I can recommend some that I have used in the past.

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Post Posted: Fri Oct 12, 2007 9:36 am    Post subject: Tony Golden - Part 2
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As for the reverse mortgage, if your mother is 62 or older and all other factors fit, many times people utilize this program to secure the home to be available for your mothers use for the rest of her life. Although second and third liens are aloud to be attached to the property it is not a common practice due to the inflated first lien of the reverse mortgage. So in a sense it helps protect the asset and removes the concern of loosing the home or equity in it due to additional liens.
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Post Posted: Fri Oct 12, 2007 9:40 am    Post subject: Tony Golden 3
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Sorry for the multiple posts but the system is not allowing me to post larger paragraphs

Her assistance, medicaid and SS should be unaffected. If paying the taxes is an issue due to the limited budget and costs of medical expenses then the proceeds you can receive from the reverse mortgage can be put into a credit line to draw on as you need. This scenario is a common issue today. The reverse mortgage can help take the risk and concerns away for these types of situation and give everyone peace of mind. keep in mind there is no monthly payment with a reverse mortgage and if used correctly in a credit line the equity in the home will continue to build as an asset. This is a very basic explanation and there is much more information for you to consider with a reverse mortgage. If this is a possible solution to your situation I can direct you to information that will help you understand the benefits and concerns of reverse mortgages. I am a reverse mortgage and Financial advisor. Please seek legal guidance on all legal matter.
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Post Posted: Sat Oct 13, 2007 5:56 am    Post subject:
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Hello Tony,

Your posts were really informative.

Could you suggest any other option if she is not qualifying for the reverse mortgage?
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Post Posted: Mon Oct 15, 2007 10:13 am    Post subject: reply jenkin7
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Hello jenkin7,

Based on the information given I not sure of what other options there are but I'm sure there are always more then one. I addressed a few issues but the main one I think was to try to protect the home by quit claiming it. In that case I believe something along the lines of an equity holding land trust may serve the purpose better. Either way there is a look back period when it comes to medical and nursing home issues.
tg

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SidneyC

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Post Posted: Tue Oct 16, 2007 12:54 am    Post subject:
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Can someone explain about the look back period? I am planning to apply for a medicaid as I do not have sufficient income to pay high medical bills.
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Post Posted: Tue Oct 16, 2007 3:18 am    Post subject: Look back period
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Hello Sidney C,
The look back period and medicaid law is pretty complicated and it is different in each state. What state are you in ?
I would also recommend to Google " explain medicaid look back period" and you will find lots of information to give you an understanding.

One site that explained it well is virtuallawoffice.com/transfer.html

But there are many to choose from and review. It is best to contact an elder care attorney in your state to review your situation.

Again, looking at your entire situation will help find solutions for your needs. Are you eligable or have you loked into a reverse mortgage. It may not fit your needs but many times this option is used to help with lack of income and high medical bills.
Regards
Tony G
SidneyC

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Post Posted: Wed Oct 17, 2007 12:35 am    Post subject:
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Thanks Tony for all that info.

I am not eligible for a reverse mortgage because of my age.
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