<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=us-ascii"><meta name=Generator content="Microsoft Word 14 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>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. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Susan E. Spuller<o:p></o:p></p><p class=MsoNormal>Of Counsel<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Law Office of Paulette Peterson, PLLC<o:p></o:p></p><p class=MsoNormal>7869 Hansen Road<o:p></o:p></p><p class=MsoNormal>Bainbridge Island, WA 98110<o:p></o:p></p><p class=MsoNormal>206.855.9293<o:p></o:p></p><p class=MsoNormal>Fax: 206.855.9295<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><i><span style='font-size:10.0pt'>The information contained in this email is confidential and may also be attorney-client privileged. The information is intended only for the use of the individual or entity to whom it is addressed. If you are not the intended recipient, or the employee or agent responsible to deliver it to the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this email in error, please immediately notify me by replying to this email and delete the original. Thank you.<o:p></o:p></span></i></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>