Legal Question in Real Estate Law in California
My father has power of attorney over my stepmother who had a stroke, they own a 1977 monbile home they recieved a letter from medical stating that when they die, meical will go after there astate, however in there will they wish to leave the mobile home to me I am the son, how can we keep meical from taking the mobile home from me, can my father gift the mobile home to me being he has power of attorney, or can he quit claim it to me? thank you for your time.
2 Answers from Attorneys
It is illegal to give things away in order to avoid paying your creditors, especially the state. It is called a fraudulent conveyance and can get both the giver and the recipient in significant legal trouble. The only difference between other creditors and the state is the state is kind enough to wait until you die to take your home for medical bills. Unless your father and step-mother have other assets in their estate when they die that are sufficient to pay the bills, either you will have to buy out the state's lien, or the state will get the mobile home.
A transfer of property for less than fair value may be fraudulent if it leaves the transferor unable to pay his or her current and expected debts. This is covered by the Uniform Fraudulent Transfer Act. California's version of this law is found in the Civil Code as sections 3439 to 3439.12.
Medi-Cal is on the lookout for fraudulent transfers. What you are proposing to do seems to fit the definition. I'd advise against it.
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