Legal Question in Real Estate Law in Massachusetts

Re: Parent giving house to a child

The actual transfer is not complicated. However, any attorney worth their salt will want to discuss with you possible negative consequences and unfortunate outcomes of an outright transfer. The issues include Medicaid (MassHealth) long term care ineligibility, potential loss of income tax advantages, exposure of the real estate to creditors' claims, divorce, irrevocable nature of such a transfer, challenges related to the division of the parent's estate, and so on. You are well-advised to speak with an attorney. A relatively brief consultation could serve to at least alert you to additional issues to consider. Drafting and recording the deed is relatively inexpensive even when done by an attorney, compared to the cost of fixing a self-help form version from the web.

(To be clear, the other attorney, typing fast, mistyped Medicare (an insurance program which you pay for) instead of Medicaid (a program funded out of general tax revenues. Medicare does not offer long term care, nor does Medicare require reimbursement from a decedent's estate for long term care paid by the Commonwealth.)

Re: Parent giving house to a child

All that is required is that you execute a deed and file a gift tax return, assuming the intent is to make a gift. If the reason for placing the child's name on the deed is to avoid probate, there are better ways to handle this.

Also, if you are making the transfer to avoid Medicare from taking your home should you need to be placed in a nursing home facility you have some important rules to review.

I would suggest you meet with an attorney to determine the best way to achieve your intended goal with the least unintentional tax or eldercare issues created.

Also, once on the deed as tenant in common or joint tenant, the child's consent would be required to sell the home. If the child is sole owner, then the child could sell the home and evict you; not that he or she would, they simply have the power to do so. Likewise, the proceeds would be the child's not yours if and when the home was sold.

Please feel free to contact me without obligation if you have more questions.