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  1. #1
    DyannaHunter is offline Junior Member
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    Can a Nursing Home Put a Lien on A House in a Family Trust?

    What is the name of your state (only U.S. law)? NY

    My mom prepared a will and put her home in a family trust. Later, I was given a loan of cash to pay off my mortgage. I signed an interest-free promissory note with the condition that if and when I sell my house, the loan would be repaid to the trust. If my mom dies before I repay the loan, that portion would be deducted from my inheritence. My question is: If my mother needs to go into a nursing home, and her other assets are depleted, can the nursing home place a lien on her home? How would that effect my loan? Would I need to sell my house and repay the estate immediately? Thank you for any advice or assistance you may offer.What is the name of your state (only U.S. law)?
  2. #2
    TrustUser is offline Senior Member
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    unless new york law is way different than normal, the fact that the house is in a trust makes no bearing on the matter.

    i know in california, they can put a lien on the house. so i am guessing that is true in new york, as well.
  3. #3
    TrustUser is offline Senior Member
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    when you say family trust, i was assuming that you were talking about a typical living trust.

    if she put it into an irrevocable trust, there may be a difference.

    i know in california, any transfer out of your name into an entity that the state cant go after, must be done a certain time period before the person enters the state home. 2 or 3 years, if i recall.

    you need to check the new york laws.
  4. #4
    DyannaHunter is offline Junior Member
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    Thanks For Your Responses

    The house was placed in a REVOCABLE Family Trust. I am executrix of the estate and because I am on SSD, according to their attorney, it could not be an IRREVOVABLE Family Trust. (Not sure if that has any bearing.) If it is true that the house may be in jeopardy, then would my house be in jeopardy also? Is there a legal way to protect both residences?
    Last edited by DyannaHunter; 07-19-2008 at 12:12 AM.
  5. #5
    TrustUser is offline Senior Member
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    when you said "nursing home", i was thinking one run by the state. there are state rules that abide, and normally they can place a lien on the house.

    if you are talking a private one, i guess it would depend on the contract that you sign with them.

    as far as your home, that has nothing to do with it. the nursing home cant go after your assets because of your mom.

    revocable family trust sounds like just another name for a revocable living trust, so no asset protection, there.

    in irrevocable trusts, where the grantor no longer controls the assets, the rules may very well be different, but it does not apply in your case.

    as far as your loan, i am just guessing. if there is no recorded deed, then i would guess that the nursing home would be in first position, and your loan is simply a personal loan. but i doubt if the nursing home could force you to pay off your loan. and if they are in first position, i see no reason why they would even care about it. they will get their cut, first.

    what is left would then be distributed amongst the beneficiaries. you certainly have a moral responsibility to repay the loan back to the trust, where it would be shared evenly amongst all the beneficiaries. i dont know what the legal ramifications are, though. the only loans i deal with are backed by recorded trust deeds.
  6. #6
    DyannaHunter is offline Junior Member
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    Well, here goes:

    Once again, thanks for your time and information. We (my mom and I) were under the impression that whether revocable or irrevocable, while my mom is still alive she would still control the assets. I'm not sure what you mean when you say "if there is no recorded deed." I will have a recorded deed on my house shortly. I was concerned because the money I received was, in effect, a loan against my inheritance.

    So, what I am gathering now, is that if my mother's assets are depleted and money is due a nursing home, my house is safe until such time as my mom passes away and then I will have to sell it and repay the loan amount to the family trust, where it will be distributed according to her will. Put simply: My house is safe while my mom is still alive? I'll check back tomorrow for any replies.... it's 2:00 a.m. here... g'night and thanks!
  7. #7
    TrustUser is offline Senior Member
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    i dont have much experience with irrevocable trusts, but if i recall, the grantor does not usually have control over the assets, any more. but in your particular case, it does not matter, since your trust is revocable.

    afaik, i cant see any way that the nursing home can come after your house. their lien and arrangement is with your mom, and her property.

    your obligation is to the beneficiaries of your mom's trust. you personally have no obligation to the nursing home.
  8. #8
    DyannaHunter is offline Junior Member
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    Thank You!

    I see what you are saying and I hope you're right. I have no problem if I have to sell the house to repay the estate, as it was a loan to begin with. I wouldn't like it... but that's the right and legal thing to do. Appreciate your assistance.
  9. #9
    anteater is offline Senior Member
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    Was this attorney that you mention experienced in Medicaid issues? If not, you and your need to have a consult with an attorney experienced in these matters.

    If your mom should need to apply for Medicaid, my guess is that this loan will be considered an asset and availalble to pay for your mother's care.
  10. #10
    TrustUser is offline Senior Member
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    hi anteater,

    i dont know if you are correct or not, but i will say that seems like a pretty valid point, to consider.
  11. #11
    DyannaHunter is offline Junior Member
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    Yes, He is an Elder Law Atty

    Thanks for your reply. We went to an Elder Law attorney. I know that if my mother remains in the house, she can get home nursing and the house is protected. But, I'm not sure about if she needs to go into a nursing home for more sophisicated care. My mom is elderly and has private insurance and Medicare, not Medicaid. Would my loan still be considered an asset of hers?
  12. #12
    TrustUser is offline Senior Member
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    i didnt read thru any of the sites,

    here is california

    [url]http://medicaidhelp.com/ca/[/url]

    here are 3 from new york. perhaps they will shed some light on the issue for the OP.

    [url]http://www.health.state.ny.us/health_care/medicaid/[/url]

    [url]http://www.emedny.org/[/url]

    [url]http://www.seniorlaw.com/medicaid.htm[/url]

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