Many clients call me and say they want to make an appointment to transfer their home to their child/children to avoid inheritance tax and to avoid having to go through the probate process. While that sounds like a simple real estate transaction with the preparation of a deed, the question of whether or not that is the best option for each client is a much longer answer. There are several things that must be considered before you transfer your home to anyone.
First, you should consider the chance that you may need care in a nursing home. If you transfer your home now, you may be jeopardizing your eligibility for long-term care in a nursing home. It’s important to speak to an attorney well-educated in Medical Assistance, Medicaid, Long Term Care Planning and Elder Law before transferring your home.
In addition, you should also consider taxes – specifically capital gains tax and inheritance tax. Transferring your property now will have tax consequences.
Lastly, know you have options. The decision to transfer your home now outright vs. a life estate deed vs. allowing your real estate to transfer or pass through your estate pursuant to your Last Will and Testament is a case by case analysis. While it may be best for you to transfer your real estate now it may not be best for my next client. It is not best for everyone and it depends on many different factors that differ from person to person.
Call (570) 622-5933 to speak to Attorney Ashley Securda, an experienced and qualified Elder Law attorney focusing on Elder Law to discuss protecting your assets and Medicaid Planning today.