Estate Planning

[joanee]

I'm from New York State. My husband and I are in our 60's. My daughter said someone told her that we should sign the house over to her and her brother so that if anything should happen and one of us or both would have to be put in a nursing home, we wouldn't lose the house. She said she was told(by a friend) that this should be done at least 5 years before this might happen. Is this true?
Also, we have a home equity loan, would this have any bearing on our transferring ownership to the kids.

Thanks for your help.

 

[loku]

Conemplation of nursing home

There is some truth to what your daughter was told, but it is not quite cut and dry. Although she may be correct, I don’t know if 5 years is a good rule of thumb on this. It may depend on the total family situation.

There are very strict laws, with criminal penalties, designed to prevent people from giving their property away at the last moment, or even within a few years of the time that they enter a nursing home, if the result is that the Government will be expected to pay the costs of nursing home or other care, rather than the person himself from his or her assets.

If you anticipate that you may have to enter a nursing home down the road, an elder care attorney may be able to help you create a plan that will both protect much of your assets and make you eligible for Government benefits.

 

[joanee]

Thank you. I sort of thought there was more to it than that. I think perhaps I should contact an elder laywer.
Again, thank you.

 

[ALawyer]

You got good advice. And let me add something. Giving your assets to your kids may be aterrible idea -- what if they have financial reversals and/or their spouse takes it from them?