The answer is Maybe.
It’s got to be part of a coordinated plan that takes everything into account, not just the house.
Last-minute gifting like that can have serious consequences
I often see as what I refer to as “Nursing Home Cost Panic.” Suddenly, a family member needs nursing home care that is going to cost $7,500 a month and they are confronted with how they are going to pay for it. They are told, “Oh, you have to give everything away in order for them to qualify for Medicaid.” Last-minute gifting like that can have serious consequences. However, at the same time keeping the house in the person’s name going into the nursing home, or — even better — the spouse of the person going into the nursing home, can be a very valuable tool. But again, it must be considered within the overall context of what we call Care Assistance Planning.
Some unintended consequences could be…
- Denial of Medicaid benefits.
- Loss of the house from a lawsuit against the children.
- Tens or hundreds of thousands of dollars in unnecessary capital gains taxes.
Addressing the Myths and Misconceptions
There are a lot of myths out there and a lot of people who will say, “Oh, you just have to sign over your house because your assets need to be below a certain amount.” I address a lot of those myths and misconceptions in my book, The Long Term Care Solution: The Truth Behind Today’s Long Term Care Planning. If you have any additional questions, please call our office. We have friendly and caring staff here to help.