[WSBAPT] Estate Planning/ Medicaid question

[Sara M]

I am doing some estate planning for a single lady in her late seventies.
 She doesn't have much in assets, except her home, worth at least $500,000
and owned outright.  EXCEPT, she has this handwritten note that shows 3 of
the kids gave her money for the house 14 years ago: 80,000, 80,000, and
20,000 and she intends to pay them back when the house is sold.  She is the
only one on the title of the house.

We can deal with repayment in the will by percentage of what is left (if
any).  But what if she has to go into long term care and sell the home?  If
we draw up a proper promissory note now that allows the kids to be paid
back with interest upon the sale of her home, is that going to be
considered a problematic transfer for qualifying for Medicaid?

Any other suggestions, thoughts, recommendations?


Sara McCulloch
Estate Planning, Probate, and Guardianship
Sara McCulloch Law PLLC
PO Box 4519  Rollingbay, WA 98061
(206) 842-5841  desk
(206) 428-6107  fax
www.saramccullochlaw.com
sara at saramccullochlaw.com
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