Legal Question in Real Estate Law in New York
In 1994, my father signed the deed of his home over to my sister, my brother and myself for $1.00 with life use. There also was an Occupancy Agreement formally drawn up and signed by all parties. My father is now 92 years old and confined to a nursing home. My children are living in the house and would like to have full ownership. In the occupancy agreement, it states if my father is confined to a nursing home the "Occupancy Agreement" can be canceled. Does this automatically cancel the life use or are they two separate things? If they are two separate things we need to know how to go about the sale without totally messing with my father's Medicare because of the life use.
1 Answer from Attorneys
The obvious question is whether your father is mentally aware? If yes, then the children sell the house and the father signs the deed extinguishing his life estate. If no, did the father sign a power of attorney or was a guardian appointed by the father?
I do not know if the Occupancy Agreement amends the deed. My guess is if the agreement is signed in the same manner as a deed (with an acknowledgment and notary), and if consideration is given for the agreement, and if the agreement was filed with the county clerk, then the father's permanent occupancy in the nursing home would have extinguished his life estate. However, this issue must be cleared with the purchaser's title insurance before the sale is consumated.
Finally, since the father divested himeslf of ownership in the property, it should not affect Medicare.
Mike.
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