[WSBAPT] Possible life estate or ??

[J Richard McEntee, Jr.]

Hello Listmates 

I have a client who is attempting to assist her mother. Mother is in her 90s and lives with her son/brother (mid-60s age) at the family home. Father is deceased. The daughter has 2 adult children. Son has no children. Mother has very little income by which to meet her expenses and is periodically assisted financially by the daughter. Presently there is a bank loan secured by the home. Loan is roughly $100K. Property is valued in the range of $450K.

As mother is now having difficulty paying the loan to the bank, daughter is willing to take steps to assist with the payment of the loan. However, she wants to be assured that if she helps with the loan (maybe pay it off entirely) that the property is ultimately stays in the family and is received by the children. The brother has no interest in the property except to live there as long as he is alive. He is in poor health and has no expectation that he will receive the property or anything else upon his mother’s death.

It is currently mother’s plan that the property will go to the grandchildren upon her death.

I am thinking that the simplest way to handle this would be for mother to deed the property to the grandchildren and retain a life estate (second to die) that would allow mother and brother to stay at the home. In exchange, daughter could agree with mother to make payments or pay off the bank loan.

Any other suggestions that would achieve the desired result of assisting mother with the bills and keeping the property in the family for the grandchildren? Or are there other issues that I am missing in the life estate scenario? i.e. are there issues with medicaid should mother become ill and need to move from the home after the transfer? could medicaid question the conveyance and look to payment from the home? 

Any thoughts or suggestions are appreciated.

Thank you
Rich




RICH McENTEE
McENTEE LAW OFFICE
3800 Bridgeport Way W, Ste A411
University Place, WA 98466
253.227.9894(m)
jrmcentee at gmail.com       

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