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Lady Bird Deed Enhanced Life Estate

Posted on: 25th Jun, 2012 12:16 pm
it seems like a lot of advise on this subject is contradictory as to medi-cal/medicaid benefits qualifying, or liens placed on the subject properties for paid nursing care expenses.

most all these problems stem from the misunderstanding of the enhanced life estate (lady-bird deed). and how it is specifically drafted.

the easiest was to explain this is, one is "revocable", so the transferor can do anything a regular owner could do. they can sell it, mortgage it, change ownership to it, etc.. this is created with a specific deed, (not a quitclaim deed with a lifetime estate). since the owner/transferor retains all ownership rights, they would remain eligible for medi-cal or medicaid benefits, (since it's not considered a ownership transfer) but!!! the property would still be part of their estate, and subject to reimbursement or possible lien for related nursing care costs, unless a different exception applied (spouse is alive..etc).

the "irrevocable" enhanced life estate, usually done with a quit claim deed, transfers actual ownership rights from the giver. they can no longer mortgage,sell, transfer the property, since they assigned their ownership rights with the deed. this type of transfer, is subject to the 5 year look back, and related disqualification time periods. but the upside is the property is not subject to medi-cal reimbursements, or property liens.

my question is how come a qualified knowledgeable elder care attorney does not come forward, and clarify the methods and differences in these types of transfers. i don't want to believe most attorney's motto, "it's the money!" that keeps them from stepping up and helping the community. this subject will impact us all eventually, and in most cases, the home is the only asset with value. it took them 30 years of hard work and savings to get it, and only a year or two paying nursing care expenses to lose it.

and while i'm no expert on this subject, i'm amazed at the number of misinformation on this subject. all with the potential of someone losing their most valuable asset. and don't assume that just because your hired attorney advised it, it's correct, or going to work, unless he can show you similar cases, he personally worked through the system and prevailed.
Hello taxbgone,

You must get your own new title policy as this will protect you against any future claims to your title of absolute ownership of the house.

:idea:
Posted on: 25th Jun, 2012 07:49 pm
Hi taxbgone!

Welcome to forums!

Thank you for sharing this information with us. This information will help a lot of people. Why don't you join our community and participate in the forum discussions on a regular basis? Your excellent knowledge and experience will help a large number of posters dealing with deed related issues.

Sussane
Posted on: 25th Jun, 2012 08:21 pm
Thanks very much to Sussane and my friend "down under" , I may indeed join the community and share some of my humble knowledge of tax law and there applications.
As a tax advocate, I see these questions come up daily in practice, and just like this forum, the information from"experts" differs dramatically. My issue is that a lot of people reading the answers think they're correct, and proceed to follow the advice. But if the answer is wrong, in anyway, or doesn't apply to their specific situation, they could lose their home, or life savings.
Knowledge is Power, but Information is not always Knowledge
Posted on: 27th Jun, 2012 11:02 am
It will really good to see you participating in the forums!! :)
Posted on: 27th Jun, 2012 11:03 pm
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