Legal Question in Real Estate Law in New York

Any risk buying a home from a Trust?

What is the risk of buying a house from an irrevocable trust? The house was put in the trust 6 months ago (just days before the new Medicaid bill went into effect) while the seller was in a nursing home. She has no more assets, just Social Security, and now owes the nursing home several months of bills. If she applies for Medicaid and is refused, can anyone come after the buyer and take the house? The trust forbids that any of the assets it contains can be used for the grantor. Will the Trust be deemed fraudulant? What will happen?


Asked on 8/11/06, 10:53 pm

1 Answer from Attorneys
Debra Palazzo Law Offices of Debra Palazzo, LLC

Re: Any risk buying a home from a Trust?

See no risk to the Buyer as long as it is a legitimate sale for value (not a fraudulent transfer). Make sure the Title is clear (no lien from nursing home).

The Seller will not qualify for medicaid as she doesn't meet the look-back period.

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Answered on 8/12/06, 12:47 pm


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