Legal Question in Real Estate Law in New York

Re: buying house below market value

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Your father could transfer the property to you while reserving a power to revoke the transfer at any time before his death. The effect of this would be to remove the house from his assets for Medicaid review (subject to the five year look-back period) but allow you, upon his death to receive the stepped-up basis (value at date of death) for estate tax purposes.

In addition, he would be protected because he could take the hous back if he weished to.

Re: buying house below market value

If the property has no mortgage or other liens, there is no need for a "regular closing," the transfer to you would entail drawing up and executing a deed and recording it. It is common for grantors such as your father to reserve a "life estate" in the property but it is not necessary. One other factor to consider, though, is taxation, including local property tax if your father was entitled to tax exemptions (such as STAR). Contact a real estate attorney to advise you.