can my parents put there house in my name so they avoid it being sold to pay for residential care if they need

Question

can this be done legally im 33 my kids are 12 and 9 what about putting value of home into trust for kids etc

can we avoid not evade inheritance tax

dont want residential care home owners getting my parents home instead of there grand children

any legal help would be very welcomed

thank you in advance

Answer 1

i know what you mean

im trying to persuade my parents to sign their house over to me to avoid inheritence tax but they arent having it at the moment

Answer 2

I have a lovevird and he is great but needs a lot of attention and takes more time for training. I think the best starter bird would be a cockatiel. My friend has one and he is so sweet. They learn quickly and attach to you pretty early on. The daily responsibilities include feeding them seed, pellets and other nutritious things like fruit and veggies. You will need to change the water at least two times a day to make sure that there is no bacteria in the water dish. Cleaning the cage every 2 weeks has worked well for me although some would suggest once a week. You will want to spend some time with your new bird every day practicing step ups and whistles. The cost for a cage, bird, food and toys will be around $150 - $300 depending on where you get it. Make sure the bird you pick is healthy and happy. If the feathers are not looking nice then the bird may be a little depressed or not have been cared for very well at the pet shop. Hold the bird and see if there is a connection before you just pick one. Hope you find a great pet!

Answer 3

It is a matter of Federal law in the United States. Congress has established a period of ineligibility for Medicaid for those who transfer assets. This period of ineligibility is determined by dividing the amount transferred by what Medicaid determines to be the average private pay cost of a nursing home in your state. However, state Medicaid officials will look only at transfers made within the 36 months prior to the Medicaid application (or 60 months if the transfer was made to certain kinds of trusts). Thus, if you can plan ahead and make transfers well in advance of needing Medicaid (three to five years, depending on where you are transferring the money), the transfers will not affect Medicaid eligibility.

The bad thing for a recipient of a residence is that if you sell a house which you received by gift, you will have to pay federal income tax using your parents' basis rather than the fair market value at the time of the gift.

For best protection, hire an "elder law" attorney. Don't rely solely on advice from YAHOO! Answers.

Answer 4

Have your parents change the ownership from joint ownership to each of them owns 1 half of the house. Then when one dies you can inherit thier half which will probably be under the tax threshold so no tax. Then when the other dies likewise. No inheritence tax to pay and all perfectly legal. As for Nursing homes. They can't force the sale of the house if one partner is still living in it. So unless they both have to enter a Nursing home at the same time the house is safe.

Answer 5

You might try this in the finance section-a financial planner might help.

I believe if the house is put in your name now, you you would also receive the low original value of the house as a tax basis. And possibly pay taxes on the difference when the house is sold(a lot depends on what taxes are at that point). Right now, there is no inheritance tax and if there was, it would probably not affect you-only estates of over 1to 3 million. So inheritance is preferential, tax-wise.

The government, I believe, looks at assets held(even if sold) within 2 years and perhaps more.

Trusts for the kids seem possible.

Answer 6

If your parents legally make their property over to you, 7 years must pass before it is rightfully yours. If before the 7 years are up, your parents have to go into care, their house would have to be sold, to pay for their care.

Local authorities pay for older people's care, if they have no assets, or large saving accounts. However, most Councils' now only assist people to go into care if their needs are "critical" and they real do apply this rule.

Don't know much about inheritance tax, sorry...

Answer 7

I agree with Nigel! You basicallly want your parents residential care to be paid for by the state...instead of them paying for a bit more comfort with THEIR money!! State care is the basic---no frills-- but there are many private, homes that are graded like hotels, with little extras to make them feel at 'home' and round the clock medical attention. And this is what you want for them, after a lifetime of raising a family?? Hopefully your children will grow up , work hard, and make their OWN money, not take from their grandparents when they need it for their old age. No doubt you will convince your poor parents this is the best thing for them to do (for you not them). Shame Shame Shame on you.

Answer 8

Yes, but there is (in the US) a waiting period that must expire before the house (or any assets) are protected.

Not sure if this is a state or federal regulation, but in my state it was 2 years. Check with an attorney; there are several methods to accomplish this in addition to an outright sale.

Use a knowledgeable attorney. There are tax consequences for you if a transfer is not set up using the most advantageous method.

Answer 9

The goverment goes back 33-36 months of their assets when it comes to medicaid. . You may need to seek the professional advice of an attorney as to how to work this out. It could be a simple as putting your name on the deed or establishing a trust.Find a lawyer who deals with wills, estates, trusts or who is also an accountant/financial planner. Good luck.

Answer 10

Isn't it a travesty that you are faced with this situation? I'm sure your parents have paid their taxes and national insurance all these years, but are faced with having their assets stripped if they need residential care. Yet if someone comes into this country to seek asylum, they can sponge off the state regardless. We should be looking after our own first, and turning away these leeches. They have contributed nothing and therefore deserve nothing. I really feel for you and your parents. What is the point of tax and national insurance if we cannot look after our elderly citizens free of charge, or at least have the government pay for their upkeep?

Answer 11

It has to be done 3 or 5 years prior to your parents going into a nursing home.
If they are scared you may put them out once they have signed it over, do a back to back, that is you write a document which turns the house back to them for £1.00 no one need know about this unless you try to throw them out.