[WSBAPT] Medicaid Asset Recovery for Life Estate

[Susan Spuller]

PC's mother is no longer able to live alone safely, and he wants to move her
into his home so that he can provide care.  There is an unfinished portion
of the house that will require remodeling to accomplish this.  Mom has said
that she will sell her own house to pay for the remodel so that can happen.
If mom purchases a life estate in his home in order to provide him with the
funds to finish the basement, I believe that should avoid a transfer penalty
(assuming that she makes it her legal residence and resides there for at
least a year).  Am I correct?  Also, is a life estate that is purchased in
this way, as opposed to retained in the applicant's own home, treated any
differently for asset recovery purposes?  I don't think they will want to go
the life estate route if there is a potential for a lien on their home for
the value of mom's life estate.  Thanks for any assistance. 

 

Susan E. Spuller

Of Counsel

 

Law Office of Paulette Peterson, PLLC

7869 Hansen Road

Bainbridge Island, WA  98110

206.855.9293

Fax: 206.855.9295

 

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