Posted on: 12th Nov, 2009 01:58 pm
My mother moved into a retirement/assisted living facility. She is expecting to receive VA benefits toward the cost of living there. For now, she leased her home which still has a mortgage and would like to add me to the title or deed so that I can eventually own and live in the house. The house also has a lien for repairs and updates that were under a state/county program. Which type of deed do we use to protect us from probate, taxes, Medicaid, other liens and from losing Medicaid benefits if my mother should need down the road? How is the balance of the lien paid or handled? Additionally, I have a bankruptcy that is less than a year old. Can creditors file a lien on the house if I am attached in any way?
There are just too many variables to your situation, and you don't want to do it incorrectly, so you need to contact a local Estate Planning Attorney to review your situation and help you out.
Hi pdh,
Your mother can use a lady bird deed to avoid probate. Through the deed, she can add you to the title to the property. The lady bird deed will also not affect her eligibility for Medicaid as long as she expresses her intention to occupy the property. However, as there is a mortgage on the property, she needs to inform the lender before making any changes to the title. Once you are added to the title, you will be a legal owner of the property. Thus, your creditors may come after this property to recover their outstanding dues. But the best thing is to consult an estate planning lawyer regarding the lady bird deed and how it can help you in this situation.
Your mother can use a lady bird deed to avoid probate. Through the deed, she can add you to the title to the property. The lady bird deed will also not affect her eligibility for Medicaid as long as she expresses her intention to occupy the property. However, as there is a mortgage on the property, she needs to inform the lender before making any changes to the title. Once you are added to the title, you will be a legal owner of the property. Thus, your creditors may come after this property to recover their outstanding dues. But the best thing is to consult an estate planning lawyer regarding the lady bird deed and how it can help you in this situation.
