Legal Question in Wills and Trusts in Minnesota

Re: Putting childrens names in house

When it come to the kind of transfer you are talking about, I usually tell my clients that the cure is worse than the problem it is trying to fix. Statistics show that the likelihood of any given individual winding up in a nursing home is relatively small. Most of us never make it that far.

If the transfer is made, it does not count unless thirty-six months go by before the application for medical assistance is made. That's the first problem. If the transfer is made to a trust instead of to individuals, this time period (the last time I checked) is extended - off the top of my head I don't know how much longer - but this makes the use of a trust unattractive.

If people insist that they want to do this even after I express my concerns, I tell them that they should at least retain a life estate. That way nobody can make them leave unless they want to.

I did one of these transfers in the 1980s, and then one of the children wound up in bankruptcy court. The bankruptcy made things really difficult - in ways too complicated to go into here. I don't like the part of your story about the bad debts either.

Your parents better to consult with a good lawyer before they do anything rash.

Good luck.

This response does not create an attorney-client relationship. It is for general information purposes only. You are advised to consult the attorney of your choice concerning the details of your case.