[WSBAPT] life estate

[Mike Winslow]

The use of the QCD, with reserved life estate, will result in loss of the step up in tax basis at Mom’s death (check with CPA to verify this). This is a significant benefit to lose for daughter. CYA letter if you go this route.
Using a TODD avoids probate transfer of the house and retains the step up.
 
Regardless of approach, Daughter should be documenting now mom’s care needs, as the rendering of care by daughter, under circumstances which allow mom to avoid nursing home care (saving the state and taxpayers money) can allow daughter to avoid a later Medicaid lien if mom becomes institutionalized. Jacob Menashe or others on this list could advise further about how to meet those requirements. Preplanning on this issue will save trouble and money later.
 
Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com
 
This message is from an attorney, so it’s confidential. If you are not the intended recipient, it’s too late to stop reading this message, but you may not use it for any improper purpose. Huge Disclaimer available upon request.
 
From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Rachel Edmiston
Sent: Monday, December 18, 2017 4:51 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] life estate
 
The plan is for the daughter to move in with her and take care of her so that she doesn’t have to move into an assisted living facility.  Since she’s in her late 60s, she’s not expecting to meet Mr. Right, but you never know.  I’ve explained to her that if she wants to sell the house later on, she would need her daughter’s consent.  I also explained that her daughter’s creditors could reach the house, but again, she doesn’t think this will be a problem.
 
On Mon, Dec 18, 2017 at 3:16 PM, Marcus Fry <mfry at lyon-law.com> wrote:
Josh,
Neither will she with a transfer on death deed. 
Rachel,
I think you need a better understanding of client's goals. What if your client wants to move into an assisted living facility? Does she have other resources to pay for it? What if she meets the man of her dreams and she wants to sell and move away with him. With a life estate, she has no authority to direct the sale of house. Lastly, what if her daughter has creditor or marital issues, does she want the house exposed to those?
Marcus Fry
Lyon, Weigand & Gustafson P.S.
Yakima, Wa.



Sent from my Samsung Galaxy smartphone.


-------- Original message --------
From: Josh Grant <jgrant at accima.com> 
Date:12/18/2017 2:46 PM (GMT-08:00) 
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com> 
Cc: 
Subject: Re: [WSBAPT] life estate 
Clients will not start the 5 year waiting period for Medicaid eligibility as to this asset if they retain a life estate.
 
From: Rachel Edmiston <mailto:rachel.edmiston at gmail.com>  
Sent: Sunday, December 17, 2017 1:44 PM
To: WSBA Probate  <mailto:wsbapt at lists.wsbarppt.com> & Trust Listserv 
Subject: [WSBAPT] life estate
 
Hi,
One of my clients wants to give her house to her daughter and retain a life estate for herself.  I thought this was done by filing a quit claim deed that retained a life estate, but I’m having a hard time finding a sample. Do any of you have one I could use as a guide?  I’d also appreciate any helpful tips you might have or warnings about pitfalls as I’ve obviously never done this before.
Thank you,
Rachel Edmiston


-- 
Rachel Edmiston, 
PO Box 13738
Mill Creek, WA  98082
T: 425-945-6333 <tel:(425)%20945-6333> 
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-- 
Rachel Edmiston, 
PO Box 13738
Mill Creek, WA  98082
T: 425-945-6333
F: 425-272-4294
 
CONFIDENTIAL: ATTORNEY/CLIENT PRIVILEGED; ATTORNEY WORK PRODUCT The information contained in this email is intended for the individual or entity above. This email is protected by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521 and is legally protected by the attorney/client privilege and/or work product doctrine. If you are not the intended recipient, please do not read, copy, use, forward or disclose this communication to others; also, please notify the sender by replying to this message, and then delete this message from your system. Thank you.
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