[WSBAPT] Mom's Shacking Up

[Setareh Mahmoodi]

The other issue with gifting the house to the daughters now is that the
house then belongs to the daughters not mom during her life time so
technically they could kick her out, the house/equity becomes open to
daughters' creditors, etc.  There's also co-ownership potential issues that
arise if the house is owned by all 3 daughters, so it's something worth
discussing depending on what the end goals are for the property.

If she requires or could require Medicaid planning, there's the penalty and
asset transfer issues to explore too.

Maybe a residence trust with a life estate to mom to ensure her
comfort/security during her life time with daughters as beneficiaries?

I would highly recommend a cohab agreement in any scenario.

Setareh

On Feb 27, 2018 2:43 PM, "Amy Goertz" <amyjgoertz at icloud.com> wrote:

Fellow listers,

I have a potential client who came in with her three adult daughters to
discuss concerns regarding Mom's boyfriend moving into the family home. Mom
is 80 and boyfriend has prior bankruptcy in his past. They had previously
been advised to tell the boyfriend to keep a post office box and not
receive his mail at the house, so as to prevent him from establishing
himself as a resident or tenant at the house (that’s a new one on me).
Although the mom is quite sharp now, the thought is there that she may
become less so as time goes on and may become vulnerable to his influence.
The main goal of the family is to prevent the boyfriend from claiming any
interest in the home in the event something happens to mom, and in
particular having some means of getting him out of the house without a
long-term eviction process if she dies or goes to the hospital. Mom says by
no means are they talking about marriage.

We discussed a Transfer on Death Deed, but since it is revocable it would
leave an open door to him talking the mom into signing something to give
him the house. We also discussed a Cohabitation Agreement, which
they believe he will be agreeable to signing. We also talked about having
her give the daughters the house now, which would require a Gift Tax Return
and would also cause them to lose the senior discount on the property taxes.

Any thoughts on the best approach here?


*Amy J. Goertz, J.D.*
*Goertz & Lambrecht PLLC*
amyjgoertz at icloud.com

1.888.926.2607 <(888)%20926-2607> phone
1.877.684.1627 <(877)%20684-1627> fax

Address for correspondence:
2829 S. Grand Blvd., Suite 303
Spokane, WA 99203

Additional office locations:
510 Bell Street
Edmonds, WA 98020

7418 East Helm Drive
Scottsdale, AZ 85260

Goertz & Lambrecht PLLC
www.goertzlambrecht.com


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