Real Estate Investor · Omaha, NE · Member since 2015 · 31 posts · 4 votes
Hello all,
I'm currently in the process of going in on the purchase of a home for my mother in the state of either Iowa or Nebraska. My brothers and sisters are wanting to purchase a home for our 65 yr/old mother. She has absolutely no money/retirement/assets and will be retiring next year. We plan putting all of us kids as well as our mom on the title. However my mom may be the only one on the loan, maybe another 1-2 of us kids.
I know that the fed can take her home to pay for the cost of the nursing home care if she doesn't have any money. My question is if all of us children are on the title will the fed govt still be able to confiscate the house if we had to place her in a nursing home? Are there any other ways around this? Thank you in advance.
Investor · Rochester, MA · Member since 2015 · 33 posts · 10 votes
10y
You may have already checked into this ... or maybe have reservations about using one, but in my area, there are companies who specialize in this. Some are lawyers, some are not. They specialize in asset protection, estate plans, etc. for seniors. Specifically, they will help you to protect those assets if/when your parent must go into managed care. Search Elder Law. Here is a couple of examples from my area. Just examples. You would want to find one in your/your mother's area because laws can be different from state to state.
Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
10y
That's not accurate. You need to talk with an estate planning attorney on behalf your mother before you do this. Why is she going on the loan and title if you kids are buying her a house?
Investor · Rochester, MA · Member since 2015 · 33 posts · 10 votes
10y
You may have already checked into this ... or maybe have reservations about using one, but in my area, there are companies who specialize in this. Some are lawyers, some are not. They specialize in asset protection, estate plans, etc. for seniors. Specifically, they will help you to protect those assets if/when your parent must go into managed care. Search Elder Law. Here is a couple of examples from my area. Just examples. You would want to find one in your/your mother's area because laws can be different from state to state.
Investor · Roanoke, VA · Member since 2012 · 1k+ posts · 374 votes
10y
I would talk to your attorney about that
I would not put your mother on the loan or deed
Just leave it in the kids names,in my area the nursing homes go back 5 years cause they know most people won't do what they suppose to when it comes to estate planning
Real Estate Agent · Houma, LA · Member since 2016 · 238 posts · 115 votes
10y
If you are planning for your mother to get the mortgage anyway, why not set the deal up as a partnership between the kids to own the house from the get-go and rent it to your mom. As long as it's a cash flow-neutral setup, you won't even have to feel guilty about renting to your mom. Plus, there would be no need to will the house to you & your siblings.
Is there anything wrong with this idea other than planning to trust siblings?
Investor · Northeast, NE · Member since 2015 · 258 posts · 83 votes
10y
I live in Nebraska. Yes if you are buying her a house dont put her name on it. Most folks who own their own homes deed it to their kids,,,and yes nursing homes look back 5 years so you have to anticipate this accordingly. Some deed it reserving a life estate some dont. With a life estate it passes to everyone else on the deed when she passes,,,no estate proceedings needed. She should also have all her kids on her bank account as joint tenants,,,if she trusts all,,,then it passes as well. Might have the 1 per cent estate tax to pay but thats manageable. Unfortunately just went thru all this. Sure beats all those attorney fees and estate costs. Still a little to file estate tax deal but small in comparison.
Papillion, NE · Member since 2016 · 6 posts · 1 vote
10y
Great information Guys.Me and the wife are going through this now with both parents.we are planing to do some of these things are self. Early planning.
Davenport, IA · Member since 2016 · 78 posts · 6 votes
10y
Hi Nate Rohlf if you feel as though she will eventually need nursing home care probably should just get her a rental or dont put her name on it. In addition to real estate I am a registered nurse in iowa and i case manage for the elderly to help them stay at home as long as possible to prevent them from going into the nursing facility so if you ever need anything feel free to contact me and I can give you some more information.
Real Estate Investor · Omaha, NE · Member since 2015 · 31 posts · 4 votes
10y
Thank you guys for the great answers. That's why I love BP. It's been tricky. We want to contribute to half of the mortgage and she will pay the other half (approx $400). There are a few of us kids that can be on the loan but we weren't sure if -----she is on the loan but only use kids are on the deed can the govt take it. Probably going to a real estate attorney and spending a couple hundred bucks to get some answers is the way to go.
Attorney · Austin, TX · Member since 2014 · 1k+ posts · 932 votes
10y
Don't go cheap on the attorney, especially paying for consultations. They will pay for themselves many times over in the end of life expenses. Regardless if the government can't take the money, a comfortable end of life in this Country far outpaces the amount the government provides, and in the end you are stuck with the bill.