Can Government take my home?

Asked by Ms Independant, Dallas, TX Tue Dec 21, 2010

My house is 14 yrs old. My name and my mother's name are both on the deed. She is in her 80's now and her health is failing. If she has to go into a nursing home, can Medicare (government) take my home or make me sell the home to give her part to the nursing facility? Is there something I can do now before that happens to protect the home? Someone recommended I file a Lady Bird Deed but I don't know how it works or will it help.

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Anna M Brocco, Agent, Williston Park, NY
Tue Dec 21, 2010
At this point, it's in your best interest to consult with an attorney who specializes in real estate--he/she can best advise as it relates to your specific situation.
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Dec 21, 2010
Recommend to confer with real estate attorney who can review all the circumstance involved. I am assuming there is zero balance regards to mortgage? If so you might be able have deed in your name only .

Direct Link for Lady Bird Deed:
http://definitions.uslegal.com/l/lady-bird-deed/

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Alan May, Agent, Evanston, IL
Tue Dec 21, 2010
A "Lady Bird" deed is a nickname for an enhanced life state deed. It is named after Lady Bird Johnson, because allegedly President Johnson once used this type of deed to convey some land to Lady Bird. An enhanced life estate deed is a variation of a quitclaim deed that currently enables an individual to retain their homestead creditor and tax exemption, have the home be exempt from Medicaid claims during their lifetime, while at the same time enable named persons to receive the home upon death, free of Medicaid claims and liens.

It is a specially designed instrument that is only available in a few states, including Florida. Generally, it works like a traditional Life Estate Deed, and there is often no capital gains tax if the property is sold shortly after your death. It goes beyond a life estate deed, because not only does the life tenant get to live there for life, that former owner also reserves more than just a life estate.

Also reserved are the rights to sell, commit waste, and almost everything else, except the transfer on death to the "remainderman".
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