living trusts

[tori139459]

Hi, my Mother is concerned about what would happen to her property after her death even thought she has a will. She is concerned that the state could take it if she leaves behind medical bills that ins. doesn't cover or something like that. We have a neighbor whose wife was put in a nursing home and medicare doesn't pay for that and they had to give there home to them (nursing home) because he couldn't pay the $3000.00 mth. Even though they have a will it becomes null and void when she dies. It doesn't make sense to me but my mom is worried that it could happen to her. Is there a legal something that could be done before hand? Also, if she went and transfer everything over to us (her children) could it be done so that she could still be tax exempt on her property taxes like she is now or would my sister have to pay the full amount on the taxes? We live in Moselle, Mississippi.

Thanks,

Connie

 

[lwpat]

It sounds like she needs to visit an elder care attorney. You can find a list at the NAELA website. She needs to do a POA and a living will. The main purpose of a living trust is to avoid the time and expense of probate, not to avoid having to pay for her care.

If she transfers the property for less than FMV, she will lose eligibility for Medicaid for the next five years. This could also trigger a gift tax.

The house is hers and it is proper to use the value of the house to pay for her care as necessary.