Posted on: 25th Apr, 2010 07:24 pm
My aunt is 85 and in poor health. She has a reverse mortgage on her house. Her son and daughter-in-law want her to sign the house over to them. Neither one has good credit, and are not very responsible with money. they live with her now, and she pays everything to support them. My fear is that if she needs to go to a nursing home or such, it is her only asset. I have her power of attorney, but want to know the laws surrounding this issue. Thanks.
Welcome vashoncheryl,
As there is a reverse mortgage on the property, if your aunt signs over the property to her son and daughter-in-law, the reverse mortgage will become due. So, in my opinion, it does not make sense to transfer the property now to her son. Moreover, if she transfers the property now, she may become ineligible for the Medicaid benefits. There would be a look back period of 5 years after the property transfer.
As there is a reverse mortgage on the property, if your aunt signs over the property to her son and daughter-in-law, the reverse mortgage will become due. So, in my opinion, it does not make sense to transfer the property now to her son. Moreover, if she transfers the property now, she may become ineligible for the Medicaid benefits. There would be a look back period of 5 years after the property transfer.