Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: transfer of house title Date: 10/7/2013 10:31 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
My MIL wants to do this for 2 main reasons:

1) To hopefully not lose her house if she goes into a nursing home for a lengthy amount of time


Makes sense to me. Much better for me to pay her expenses rather than her paying them. I have no idea what her medical and financial circumstances are, but there is a Medicaid look-back period. If she needed Medicaid, a/k/a welfare, assistance before then her daughters would have to fork over its value.

2) So my wife and SIL hopefully won't have to pay inheritence taxes at the time of her death.

Unless she lives in one of the few states that have an inheritance tax, if she has enough assets to worry about estate tax she should have long ago seen an estate planning lawyer. Since there are so few estates subject to estate tax nowadays, it's more likely that she's bought into all of the political BS about the "death tax."

She wants to do whatever she can to limit the amount of "her money" the government can get from her in either of these cases.

Well, at least she's going to see a lawyer, which is a start. From our "true story" files comes the saga of a friend of mine. In order to save money by not bothering with lawyers, wills and such, his parents just put him on the deed to the house for an $8 filing fee. Such a bargain. Fast forward to her widowhood and my friend's bankruptcy. He qualified for a liquidating bankruptcy, which would have meant she'd lose her home. So he went with a chapter 13 and 3 years of payments he wouldn't have had to make in a chapter 7.

Phil
Rule Your Retirement Home Fool
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement