Welcome! Thank you for your question.
Unfortunately this is extremely complex because of any government benefits that your disabled brother receives. If your disabled brother receives SSI, Medicaid or Food Stamps then his disclaimer will cause him to be ineligible for one or all of those benefits for a period of time based on the amount of assets disclaimed.
Disclaimer is considered a gift of assets in this situation. When he gives assets away then SSI, Medicaid and food stamps penalize that gift as a transfer of assets.
The best way to protect the assets that he receives from the sale is to use a Special Needs Trust
. The assets he receives can be transferred by your brother to the special needs trust. So long as it is done within a few days of receiving the money he will not be penalized for the transfer and will not loose his benefits. The money in the trust can be used by the trustee (a family member if he chooses) to provide for his extra needs beyond what government benefits provide. The only downside is that upon his death, any assets he places in this trust will have to go to pay Medicaid back for the care provided to him.
The money that you receive can go into a similar special needs trust. However, it should be different and separate because if you contribute your assets to a special needs trust for him then a Medicaid payback provision as discussed above is not required on this trust.
All of this is so complex then you are really going to need the assistance of an Elder and Special Needs Attorney in your area. You can find one at www.naela.org
I cannot provide you with legal advise. I have provided you with information about the law related to your question. My answer, and any information that you find online, should not take the place of having a consultation with a lawyer in your area to advise you regarding your specific issues.
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