Fathers Estate question

[zigbot]

What is the name of your state (only U.S. law)? Penna. My brother and I would like to purchase our fathers home (for the least amount and what is the amount) so that a nursing home can not take that as payment should we have to use one in the future. Is there any amount of years we have to own it till a nursing home can still use it as payment?

 

[SIN EATER]

I can't vouch for the author or the info, but cursor down on the below site for an article re PA and medicaid planning:
http://articles.directorym.net/Medicaid_Asset_Protection_Pittsburgh_PA-r861171-Pittsburgh_PA.html

The best thing to do is to see an Elder Law Attorney and discuss the issue with them.
Some states allow a child who has been residing with the medicaid patient to retain the house.
There may be ways, such as gifting the residence to your children and retaining a life estate. But, that may not work if Medicaid requires a complete disassociation from assets.

 

[ShyCat]

The least amount you can purchase your father's home without any issues is the FMV (Fair Market Value). If less is paid than FMV, the difference is considered a gift from the father and would be subject to the 5-year lookback period for Medicaid, affecting Medicaid eligibility. Also, gifts over $13,000 per year per individual require that the donor (your father) file a gift tax return to use up some of his lifetime unified gift/estate tax exemption.

 

[FarmerJ]

What does the county property tax bill say the home is valued at ?

 

[FlyingRon]

The county property tax assessment means squat.

 

[HomeGuru]

Get a current real estate appraisal and use the appraised value as the purchase price.