<div dir="ltr"><div>Ms. McCulloch, I wish to expand on your question...</div><div><br></div><div>Is there something Mom can do with the home now to prepare to make her Medicaid qualified. I understand there is a 5-year look back, but couldn't Mom try and place the home in a legal vehicle that would give the home to the children (including repayment of their loans). Seems like that's the only asset she has to leave for her children.</div><div><br></div><div>The 5-year look back makes it a gamble, but if she's in good health and continues to be, she can document the loan as suggested by Mr. Fry AND have a little something for the children upon her demise.</div><div><br></div><div>Very often the only asset my clients have is their home and they are raising grandchildren as their own children and want desperately to make sure their grandchildren have a home when they pass. I don't have a lot of experience with Medicaid planning or irrevocable trust but would like to understand more to help these families.</div><div><br></div><div>If anyone has a good reference they can share, I would greatly appreciate it!! </div><div><br></div><div>Thank you in advance.</div></div><div class="gmail_extra"><br><div class="gmail_quote">On Mon, Mar 12, 2018 at 4:00 PM, Marcus Fry <span dir="ltr"><<a href="mailto:mfry@lyon-law.com" target="_blank">mfry@lyon-law.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
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<p class="MsoNormal"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">My 2 cents: Your client needs to acknowledge in writing the debt to avoid statute of limitations issue. I don’t see any issue is doing this in the promissory
note. You should also obtain bank records that document the loans, i.e., cancelled checks, bank statements showing wire transfers, etc. and I would attach them to the acknowledgement of debt/promissory note. This will help demonstrate that these were bona
fide loans to her and expected to be repaid as opposed to gifts. Of course, the aforementioned assumes that the kids did not consider these gifts, e.g., they did not file 709 returns stating that these funds were gifts.<u></u><u></u></span></p>
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<p class="MsoNormal" style="text-align:justify"><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt">Marcus J. Fry<u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt">Lyon, Weigand & Gustafson, P.S.
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<p class="MsoNormal"><b><span style="font-family:"Tahoma","sans-serif";font-size:10pt">From:</span></b><span style="font-family:"Tahoma","sans-serif";font-size:10pt"> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.wsbarppt.<wbr>com</a> [mailto:<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" target="_blank">wsbapt-bounces@lists.<wbr>wsbarppt.com</a>]
<b>On Behalf Of </b>Sara M<br>
<b>Sent:</b> Monday, March 12, 2018 3:48 PM<br>
<b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com" target="_blank">wsbapt@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBAPT] Estate Planning/ Medicaid question<u></u><u></u></span></p><div><div class="h5">
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<p class="MsoNormal">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.<u></u><u></u></p>
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<p class="MsoNormal">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?<u></u><u></u></p>
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<p class="MsoNormal">Any other suggestions, thoughts, recommendations? <u></u><u></u></p>
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<p class="MsoNormal" style="background:white"><span style="color:rgb(34,34,34);font-family:"Arial","sans-serif""><br>
Sara McCulloch <u></u><u></u></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:rgb(34,34,34);font-family:"Arial","sans-serif"">Estate Planning, Probate, and Guardianship<u></u><u></u></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:rgb(34,34,34);font-family:"Arial","sans-serif"">Sara McCulloch Law PLLC<u></u><u></u></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:rgb(34,34,34);font-family:"Arial","sans-serif"">PO Box 4519 Rollingbay, WA 98061<u></u><u></u></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:rgb(34,34,34);font-family:"Arial","sans-serif""><a href="tel:(206)%20842-5841" target="_blank" value="+12068425841">(206) 842-5841</a> desk<u></u><u></u></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:rgb(34,34,34);font-family:"Arial","sans-serif""><a href="tel:(206)%20428-6107" target="_blank" value="+12064286107">(206) 428-6107</a> fax<u></u><u></u></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:rgb(34,34,34);font-family:"Arial","sans-serif""><a href="http://www.saramccullochlaw.com/" target="_blank"><span style="color:rgb(17,85,204)">www.saramccullochlaw.com</span></a> <u></u><u></u></span></p>
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<p class="MsoNormal" style="background:white"><span style="color:rgb(34,34,34);font-family:"Arial","sans-serif""><a href="mailto:sara@saramccullochlaw.com" target="_blank"><span style="color:rgb(17,85,204)">sara@saramccullochlaw.com</span></a> <u></u><u></u></span></p>
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