Power of Attorney needs HELOC

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Icon Mini Profile winifre

Joined: 25 Jun 2009

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Post Posted: Thu Jun 25, 2009 12:50 pm    Post subject: Power of Attorney needs HELOC

6 years ago my mother gave me financial and medical power of attorney. 2 weeks ago I had to place her in an assisted living facility. Her pension pays over 80% of her monthly bill, however, I need to cover the rest, home up keep, taxes, repairs needed and balance on her monthly rent. I know through my own property that there are tax advantages to using lines of credit, which is what I would like to open up on her home (my childhood home). The home is paid in full - however, I want to set up some type of trust for her extra monthly costs before using the other funds available. Should I transfer the home into my name or execute a line of credit while in HER name?
Icon Mini Profile savior70

Joined: 25 Mar 2009

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Post Posted: Fri Jun 26, 2009 2:25 am    Post subject:

Hi winifre,

If you are going to take out the equity loan in your name, it is better to have the property title in your name. If you have the title in your name, it will make it easier for you to get the HELOC. Since the home is paid for, it will not be very difficult to obtain a home equity loan on the property. However, you can contact any local lender and discuss this with them. If they are willing to offer the loan on the property while it is still in your mother's name, there is no need to transfer the title in your name.


Post Posted: Fri Jun 26, 2009 6:00 am    Post subject: power of attorney needs heloc

If I transfer the property that will leave her without assetd. Should I ignore the problem that creates with Medicaid since her retirement pays most expenses? Or should I leave her name and just ADD mine?
Icon Mini Profile Jessica
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Post Posted: Fri Jun 26, 2009 6:23 am    Post subject:

Hi winfred,

You won't get a home equity line of credit (Heloc) in your name if the property remains in your mother's name. Moreover, if you'd like to get tax benefits by taking out the Heloc, you'll have to keep the title in your name. I mean, you may either transfer property in your name or add yourself to the title.

By the way, has your mother applied for Medicaid yet? there's the concept of a Look Back Period due to which one may become ineligible for Medicaid assistance if he/she has transferred property within 5 years prior to applying for the assistance.




Post Posted: Fri Jun 26, 2009 8:19 am    Post subject:

No, my mother has not applied for Medicaid as her pension has always covered her expenses and her retirement also provides her medical coverage. I am not sure of the benefit to her for Medicaid at this point, however, I do not want to make her ineligible for anything. Meanwhile, i have aquired her additional expenses. Maybe skipping tax benefits, and just adding my name would be better? If I add my name will she still be ineigible for Medicaid?
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