Legal Question in Wills and Trusts in North Carolina

You say that the father is very elderly and that father does not reside in the home. Where does father live? Is he receiving Medicaid? If the answer is yes or if father is anticipated to receive Medicaid in the next 5 years, then father should not deed the home to the son as father will be disqualified from receiving Medicaid benefits.

If father is already on Medicaid, there likewise may be issues if he deeds the home outright to the son.

I assume that the property/home is paid for free and clear. What is its value? Are there likely to be gift tax issues? Analysis of this would require knowledge of what other assets father has and whether he has made gifts during his lifetime which are at or exceed $1 million.

If the home is not paid for, then there are going to be issues with the mortgage and possible violation of the due on sale clause if the home is mortgaged.

Is father, despite his age, mentally competent? If not, does he have a power of attorney?

If father is going to convey the home, he should consider selling it for existing fair market value to son to avoid any complications with gift taxes. However, father's receipt of cash may trigger Medicaid issues if father is already receiving the funds as there is a quota as to how much in assets or resources a Medicaid beneficiary is permitted to possess. If Medicaid is not an issue and there are not other considerations (liens, gift taxes) then father could convey the property if he desired. However, it is still better for the son to inherit as he will receive a step up in basis of the property when his father passes. Otherwise, if father gives it to son now, then son will take hsi father's basis in the land. If the land has appreciated significantly, this will trigger capital gains tax whenever son goes to sell the property. As I do not know the value of the property or what other resources son possesses, I can't say if this will be an issue or not.

If father is mentally competent, he should discuss the potential conveyance with an elder law attorney in his area to ensure that father does not run afoul of any Medicaid or other tax consequences.

I don't understand why son has to wait to start the needed repairs. Can father get a home equity loan on the property? Does he have the resources to pay the loan back? Does son have other avenues of securing money to start the work?