Transfer of deed

[martinb]

Hello:

I live in NJ. My mother wishes to transfer the deed of her home (NJ) to me for a nominal price, and remain living there. I do not live in the home. I have consulted and elder care attorney and am interested in another opinion.

Can this be done legally?
What are the tax implications for both parties?
In the event that my mother had to enter a nursing home, what portion of the value of the home would Medicaid be entitled to?

Thank you in advance.

 

[ALawyer]

To the extent that the house is sold at a clearly below market, gift price, the gift portion would use up part of her $1 million lifetime exclusion.

When you sell it, your basis for capital gains tax would be the price you paid her. If she died owning it, and left it to you, there would be a stepped up basis and no capital gains tax should you sell it right away.

As far as Medicaid -- this is something an experienced elder law attorney in your state would have to advise you on as what you have in mind just may be medicaid fraud, even though you may be able to get away with it in some cases, just as people get away with murder.