Legal Question in Wills and Trusts in Minnesota

Re: Securing Real Estate Assets

The process is easy. You would have a lawyer prepare a quit claim deed. Your mother could retain a life estate if she wanted to. Under Minnesota law now, even if she does not retain the life estate, she can still claim the place as a homestead as long as it belongs to a close relative and she continues to live there.

In Minnesota a homestead is exempt from most creditors while the owner is living, but then creditors can make claims after death. Making this kind of transfer would protect from claims by most creditors after death.

HOWEVER, when it comes to eligibillity for medicaid in the event a nursing home is needed, there is a 36 month lookback period - the transfer of the homestead would disqualify her for 36 months for medicaid, after which the home would be protected from medicaid claims.

So it might be a bad idea, but it depends. After the transfer if one of the children to whom it is transferred winds up in a divorce or bankruptcy, it can get pretty sticky.

Good luck.

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