My mom recently passed away in CA at the age of 66 and was on Medi-Cal for about 1 1/2 years until she turned 65 and was on Medicare.
Her only assets in her estate are her condo and car, both with remaining loans but a good amount of equity in both of them. I consulted with a legal aid organization, but would like to get a second opinion.
The condo is in her name only (she was single and I have no other siblings). The condo has a $245K mortgage and it would sell for $385K, so about $140k in equity. Her medical expenses paid by Medi-Cal will be close to or exceed the equity. Legal Aid suggested I stop paying the mortgage and give the condo back to the bank so that Medi-Cal could work directly with the bank to get repaid. The concern for my family is that we could conceivably have to pay the $2200/month mortgage for many months before the condo sells, only to have the State reclaim the entire profit and we would also be out all the money we spent for the mortgage. On top of this, my mom also just received a $5000 tax bill from the State and owes other creditors small amounts.
I have consulted with a Consumer Advocacy organization as well, as=nd they also suggested we give the condo back to the bank since there's plenty of equity to be had, and then the State taxes and Medi-Cal can go directly to the bank to get repaid. I am fine with this suggestion because it brings some peace to my family after going through a long drawn time taking care of my mom and watching her close drawn out death, and also going into debt to help cover her expenses while she was alive.
Any comments or suggestions would be appreciated!
Thank you
Her only assets in her estate are her condo and car, both with remaining loans but a good amount of equity in both of them. I consulted with a legal aid organization, but would like to get a second opinion.
The condo is in her name only (she was single and I have no other siblings). The condo has a $245K mortgage and it would sell for $385K, so about $140k in equity. Her medical expenses paid by Medi-Cal will be close to or exceed the equity. Legal Aid suggested I stop paying the mortgage and give the condo back to the bank so that Medi-Cal could work directly with the bank to get repaid. The concern for my family is that we could conceivably have to pay the $2200/month mortgage for many months before the condo sells, only to have the State reclaim the entire profit and we would also be out all the money we spent for the mortgage. On top of this, my mom also just received a $5000 tax bill from the State and owes other creditors small amounts.
I have consulted with a Consumer Advocacy organization as well, as=nd they also suggested we give the condo back to the bank since there's plenty of equity to be had, and then the State taxes and Medi-Cal can go directly to the bank to get repaid. I am fine with this suggestion because it brings some peace to my family after going through a long drawn time taking care of my mom and watching her close drawn out death, and also going into debt to help cover her expenses while she was alive.
Any comments or suggestions would be appreciated!
Thank you