Legal Question in Real Estate Law in Alabama

Sale of home to a son-in-law

My mother-in-law is 89 years old and in good health but is slowly showing sings that assisted living might not be to far around the corner. I think the move would be good for a number of reasons, safety for her and piece of mind for her daughter ( my wife) being the most important ones. The problem is that she has limited financial resources such as social security with some possible assistance from the VA but would still fall short of the necessary funds to qualify for the assisted living. She has a home that is paid for and I would be willing to purchase it from her for rental property which would give her the additional income needed to qualify but I am unsure the best way to do this. I realize that a 5 year look back period exists should she become incapacitated and need nursing home care so I don't know how a sale at this point would work. If a sale is possible would it be better for her to take the money in payments say over 10 years with interest or in one lump sump.


Asked on 2/19/07, 4:41 pm

1 Answer from Attorneys
Norma Chaviers Norma M. Chaviers, LLC

Re: Sale of home to a son-in-law

The purchase price of the property needs to equal or exceed the assessed value of the property as shown on the county tax assessor's records. As far as financing, it would probably be the easiest administratively for you to purchase the property in one lump sum from your mother-in-law. That way, you only have one transaction to justify and document to Medicaid, should that become necessary.

Good luck!

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Answered on 2/20/07, 8:38 am


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