Gov't taking possession of home....

[mupwa]

What is the name of your state? florida

my mom has heard that if she was ever to become incapacitated and end up in a home the government could take possession of the property in order to pay for the expenses of keeping her in a home.

does this law really exist? if so, is there anything to prevent it such as a power of attorney, etc.?

if she transfers ownership to my name the property taxes will be higher because we would not be able to use the retiree exemption.

also, she has heard about a program where a bank buys the home and pays her why she still resides in it for as long as she lives. is this legit? is there a catch?

thanking you in advance for your response.

 

[HomeGuru]

What is the name of your state? florida

my mom has heard that if she was ever to become incapacitated and end up in a home the government could take possession of the property in order to pay for the expenses of keeping her in a home.

does this law really exist? if so, is there anything to prevent it such as a power of attorney, etc.?

**A: consult an estate/trust attorney.
**************


if she transfers ownership to my name the property taxes will be higher because we would not be able to use the retiree exemption.

**A: see above.
***********


also, she has heard about a program where a bank buys the home and pays her why she still resides in it for as long as she lives. is this legit? is there a catch?

**A: yes, of course there is a catch. Find out what it is.
**********
thanking you in advance for your response.

**A: no problem. Do more research.

 

[quirk]

insurance

Medicare will pay for a nursing home. But you have to be poor to qualify for medicare (I don't have the details as to exactly how poor. Look it up if you need to know). The government will not "take possession of your property", they will just consider its value (along with the rest of your assets) in determining if you are poor enough to qualify for medicare. Of course, you'd still probably have to sell it, because if you have enough wealth that medicare will not pay your costs, where else are you going to come up with the money?

While you're checking into estate law and reverse mortgages (the name for the bank buying the home thing), also check into long term care insurance. It will pay for a nursing home so you (and medicare) don't have to.

 

[HUD-1]

I have seen cases where states have put liens on properties owned by persons who received state assistance for nursing home care. They don't take the property, but normally collect upon a sale. I think the idea is that you have to be lower income to receive the state assistance and if you have substantial equity in a home, they are looking to that equity to help pay for the care. Some states go back three years in looking for assets that may have transferred to family members.