If my parents are elderly they want to sell me their home for 100, will this protect should they have to go into an assisted living facility?

Will this protect them since the deed of the home will be in my name; I am their son. Should they go into a nursing home at sometime in the next 18 to 24 months? I have been a licensed real estate agent for 13 years. I can handle the sales agreement and associated paperwork, and of course we would be closing with a local title company. My parents own a home out right, there is no first or second mortgage. After the sale of the home is executed, my parents would then be signing a rental agreement, to rent the home from me. Will this action, of

transferring the deed and then my parents renting the home from me, protect them should they go into a assisted living facility?

Asked on June 29, 2016 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Once Medicaid starts paying for a nursing home, Medicaid can "look back" up to 5 years and potentially undo any less-than-market value transactions which were done (presumably) to hide or shelter assets, or to give assets to family while letting the government and taxpayers pick up the tab. So if the "100" you refer to is less (or worse: significantly less) than fair market value for the home, Medicaid could void the transaction and take the home.


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