Legal Question in Elder Law in Massachusetts

Elder Law-Life Estate Deed

My mother in law would like her property transfered to her 3 children with a life estate in her name. We are in the state of MA so the property must be transferred at least 3 years prior to any medicaid claim to avoid a lien. I have read conflicting information regarding life estate deeds and medicaid. If the property is put in a life estate and the three years pass before medicaid is needed, will medicaid still have claim on the property? Also, can a homestead be put on the property to further protect it? If so, should the 1a form (62 and older) be used in conjunction with the life estate deed? I'm a paralegal in real estate and personal injury, so i can prepare the deed for her, but I'm not familiar with elder law. Advice is appreciated. Thank you!


Asked on 3/17/08, 6:46 pm

2 Answers from Attorneys
Denise Leydon Harvey Harvey Law Offices

Re: Elder Law-Life Estate Deed

I couldn't agree more with Atty Golden. This is an area of the law that changes frequently and involves several different components working together. In this case a little knowledge really is a dangerous thing.

Please seek the advice of an elder law attorney in order to protect your family's assets in the best possible way.

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Answered on 3/18/08, 11:57 am
Alexandra Golden Golden Law Center

Re: Elder Law-Life Estate Deed

Please send your MIL to an experienced elder law attorney. While I don't doubt that you mean well, your hope of doing things cheaply could cost your mother-in-law hundreds of thousands of dollars and expose you to suit for practicing law without a license.

The look-back period on transfers of assets became 5 years as of 2/8/06. Unless the gift is undone, if she should need to file for MassHealth in that five year period, she would be potentially be disqualified for benefits for potentially many months after the date that she applied. Thus, many elder law attorneys (including myself) consider it malpractice to prepare a life estate or any other permanent transfer of real estate without a careful review of the elder's assets and a discussion with the elder of the pros and cons of any such transfers, particularly in light of the MassHealth's increasingly hostile position toward such legal planning, potential tax implications, and issues that arise if a remainderman dies before your MIL.

Please feel free to have your MIL contact my office if she is interested in discussing this matter further.

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Answered on 3/17/08, 7:51 pm


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