Legal Question in Wills and Trusts in Indiana

Re: father dying; wants to give property

There are very strict laws, with criminal penalties, designed to prevent people from giving their property away at the last moment, or even within a few years of the time that they experience their last illness or enter a nursing home, if the result is that the Government will be expected to pay the costs of nursing home or other care, rather than the person himself from his or her assets.

However, every situation is different. An attorney with a specialty in elder care may know of something that could help in your situation.

Re: father dying; wants to give property

Your parent is concerned about his rights if he has to apply for medicaid to pay his medical bill and long term care home expenses. Whether he can now plan around saving the house depends upon several factors, including the fact that there are certain assets one owns that are exempt from consideration as an asset. Real estate falls into that category if it is also the home of an elderly parent, a minor child or a disabled child. It can be rented to the person living there for the costs to maintain the home (taxes, insurance and upkeep). If he deeds it to someone one other than his parent, he could be penalized for a period of time before he can obtain medicaid benefits. If you or your father cannot afford to consult a local attorney, consider calling Legal Services' Senior Law Project in Indianapolis for more detailed advice for Medicaid planning.

Children inherit $100,000 apiece (as do parents) before there is an inheritance tax imposed, which begins at 1%, so I doubt inheritance tax would be a problem later. He probably should have a will that gives the parent the right to dwell there for life if the parent is not a joint owner.