Legal Question in Wills and Trusts in New York

Protecting property from medical bill collectors

Two years ago my father transfered his home into me and my brother's name with a life estate deed through which he reserved his rights to reside in house till death ect. He has now been diagnosed with cancer. Can the creditors/hospital touch the house if the bills get out of hand. He also put most of his money in our name at the same time. Isnt there a three year window that they can use to come after us?


Asked on 5/07/05, 9:25 am

2 Answers from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Protecting property from medical bill collectors

I agree witrh Norman. Additionally, if Medicaid is involved, depending upon the fair market values of the house and other assets, there is a look-back period involved. You should check with a NY Elder Law attorney to get the specifics on the amounts, the look-back period involved and how the calculation is made, to determine the possible liability for reimbursement. This is in addition to the possible claim for fraud on creditors.

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Answered on 5/10/05, 11:12 am
Norman Nadel Norman Nadel, Esq.

Re: Protecting property from medical bill collectors

Generally, the creditors can only seize property owned by your father, such as, his life interest in the house. However, if the transfers were made at a time when there were substantial debts it can be agrued that the gifts were a fraud on creditors. Furthermore, if you used the gifts to support your dad it can be argued that you hold the gifts in trust for his benefit which may give the creditors a right to seize them.

This is a complex area of the law and should always be guided by an attorney.

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Answered on 5/08/05, 7:58 am


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