Re: [tips_and_tricks] Real Estate question
- Regarding Steve's transfer of property that is in his mother's name:Why not put it in a trust? That way it's in your control but not in your name for access to various "snoops".Susanne Waid
> I own several properties. Paid all costs involved but I put the properties in my mother's name for tax reasons.
> Now she is getting older and kind of sick. I need to get the properties in my name. But I need to do it in a way that if she has to enter a nursing home, the properties will not become involved.
> I was thinking about a General Warranty Deed with a clause that would lay out our agreement and having fulfilled said agreement property hereby transfers to:
> What do you think?
While it's not particularly difficult to transfer property if you're familiar with the legal issues / procedures, know what a "fraudulent conveyance" is, etc., it doesn't appear that you are & since the ramifications of doing it wrong could be so costly, I'd say have an attorney or paralegal who specializes in real estate transactions help you get it right. There is no "one size fits all" method; how it's done properly varies greatly from one situation to another & from one State to another.
Just one example of what can go wrong - a man I know has a family trust & a house was put into it. But since the trust didn't have any credit, when the man needed to re-finance, he transferred the property to himself & his wife (they were trustees), obtained new financing using their own credit, then transferred the property back into the trust. But there was no "consideration" in the transfers - no "sale" of the property, just a name change on the deed & the IRS foreclosed on the property for back taxes. The matter is still in court (over 2 years now) & the IRS hasn't taken possession of the house, but even if they end up winning, it'll cost 'em @ least 10 times what it would have if they had a real estate professional make the transfers instead of doing it themselves.
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- I wouldn't count on that working if that quit claim was dated within the look back period. My step grandfather gave his three family house to his grandson about two years before he went into a nursing home. The state he lived in had a three year look back and they looked back and took the house from the grandson and sold it. In that state the transfer must be a fair market value sale to avoid the look back. It isn't the nursing home you need to convince, it is the state welfare department.
You have to move fast because a lot of states and federal program pay for
nursing home care is based on liquidating assets. Most people think that is
from the day of entrance-in other words they THINK that upon entrance at
that point in time they look at the assets.