<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Marilyn321r@aol:
My father is in extremely bad health and has not been able to work for years! His only income is property that generates about $1,000 per month to live on. He owns it free and clear. He needs to be on disability so that he can get health care. He does not qualify because he owns an income property. I have been told that he can sell his property to us (his children) for a dollar. This was told to me by a friend of mine that is a real estate broker. Other people have said it sounds illegal. We are in Colorado, he is in Kansas. And ideas as to wether or not this is legal? If not, any suggestions? I'm thinking a real estate trade. Any help or suggestions are GREATLY!! appreciated. <HR></BLOCKQUOTE>
It is perfectly legal to sell property for a dollar or even give it away free as a gift. The issue here is one of intent. If the transaction was completed for the primary purpose of getting assets out from your fathers name in order for him to qualify for the disability health care then the act may be considered illegal. Several options exist from selling the property and putting the cash in a trust account to pay for medical insurance to placing the property in trust and naming family members as beneficiaries. There are several forms of a trust instrument and once the property is in trust, the trust as a separate legal entity becomes the legal owner of the property. In this circumstance your father would not own any property as the property would be owned by the trust. You need to consult with a trust attorney to get the exact details and the time limits on transfer of assets.
