Real Estate Law
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Hi and welcome to JA. I am Ray a licensed lawyer and will be assisting you tonight.
Here if you are going to sell the property it is critical you sell it for fair market value.Ohio has a five year look back for such sales and they will review it here to see if you sold it for fair market value.If you gift it to them then they may deny you medicaid.
Your options would be for you to sell it to them and carry the note.The note needs to have language that prevents a sale of the note.Then you will would will them the note.This is a possible way to sell it to them and yet avoid medicaid problems here.
There may be other possibilities but you need to consider a NAELA lawyer.National Academy of Elder Lawyers.They specialize in such sales while maintaining your potential eligibility.
My Mother is not planning on gifting it to my sister who lives with her . I am interested in knowing what is in my Mother's best interest if she decides to sell it to my sister
She can sell it here for fair market value.She maybe able to keep a life estate.
The medicaid folks here in Ohio look at any transfer within last five years.You cannot gift it or sell it at reduced value.It is tricky and she needs to make sure she has a professional help with the sale.
She may then be able to shelter most of the proceeds in say a annuity or other medicaid qualifying shelter.
From a medicaid prospective she would be better off to sell it to her outright and just pay her rent.
If my MOther decides on a life estate then does the property need to have an appraisal so my sister would need to pay fair market value to my sister? Bef;ore selling, does my MOther need to have my and my sisters names taken off the deed first?
Your mother would need to take any others off the deed here.An appraisal would protect her here from any medicaid problems.
I know my Mother would like to continue to live in the house until her passing or until she is no longer able to care for herself
Her homestead is exempt here, if it is a life estate again that would not be counted.Or she sells it and pays rent.
And the lawyer can help her shelter the funds she gets--often a medicaid qualifying annuity or other shelter.
She can find a local NAELA lawyer here.
She is in a good place and time to do this with some planning.
This is what I was referencing.
I have also seen situations where the person buys a new or pretty new car.It is exempt also and relatives can use it to transport her or come and visit here in a home.
Another example of good planning.
Here are things that are exempt here.
If my sister buys the property, is there a length of time she needs to own the house where the state can not place a lien on it for any nursing home costs. My sister seems to think this needs to be done quickly and her and her significant other are pushing her to sell it to them. They would like to make significant remoiseling improvements and feel they should own the property before improvements are made I have advised my Mother not to rush into this and to consider all her options
No one sister buys it then it is hers, they would look at sales price that's all.I would go talk it over with a NAELA lawyer about options and then decide here what she wants to do.It really is important to go over options and not do anything hasty as you state.
I wish her the best here , I appreciate the chance to help you tonight.
Thank you your advice has been helpful. Have a good day
You too.If you can leave a positive rating it is much appreciated.
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