Legal Question in Wills and Trusts in North Carolina

Mom is in a nursing home, Pop has been committed due to dementia and alcoholism. We do not have contact due to many bad past issues. A lawyer hired by DSS to sell the land contacted me and wants to sell me 1% of the land so when they pass it will be mine. Why can't it be signed over to me now? Will it prevent them from getting Medicaid? If I pay the past due taxes, why can't it just be signed over to me? This lawyer says he spoke to Mom and she wants me to have it. Pop is not capable of making the decisions. The land is in both their names. DSS appointed a lawyer as guardian. This lawyer offered this option to me: I buy the 1% AND pay the overdue taxes, the land won't be sold and my parents are eligible for Medicaid. I get the land after they pass away with no further payment other than the yearly taxes between now and then. They are not presently on Medicaid, but will be after the sale of the land Otherwise, the land will be sold to pay toward their medical bills and the lawyer's fee. In NC I cannot be forced to pay for their nursing home care unless I sign a document saying that I am responsible...unless the lawyer was incorrect about that, too. Are there restrictions on what I can do on the land, as far as clean-up and occupancy? What are my rights if I do this? Rachael Hunter answered part of this on Avvo, but I understand she is no longer there. I know now they can't sign it over without loosing Medicaid eligibility for 5 yrs. But if I buy this 1%, do I pay the 1% AND the taxes? And if I do this, what are my legal rights?


Asked on 12/12/13, 4:00 am

1 Answer from Attorneys
Rachel Hunter

I already answered most of this question. The facts are the same. The land cannot just be given to you outright because this will violate the Medicaid lookback provision and your parents will not be eligible for Medicaid. So if the land does not get sold to you then the guardian for your parents will sell the land, take a fee and pay the rest to the nursing home.

If you want to save the land for you, then you need to buy the land from your parents. If you only buy 1% of the land then your parents will still own 99% of the land. If your parents own the land jointly, the land will pass to one parent solely when one dies. When the survivor dies, Medicaid will seek reimbursement from the survivor's estate. While you will not be directly responsible, you will be indirectly responsible as you will either have to sell or refinance or come up with some other way to repay Medicaid if you want to keep the 99% of the land.

I don't understand the "what are my rights?" If you own 1% of the land then you get to do what you want with the 1% of the land.

Are you paying the overdue taxes on the whole and continuing to pay taxes in the future in lieu of the purchase price?

Example - if the land is worth $100,000, you are buying 1% or $1,000 worth. Instead of you paying the DSS lawyer $1000, you pay the overdue taxes and future taxes and this will approximate the $1000 purchase price??? What happens if your parents live for 20 more years and you pay more? Do you get another percentage of the land conveyed to you outright?

I think it would be better for you to buy 100% of the land outright if you want the land and can afford it. Your parents would then be eligible for Medicaid whenever they spend down the money from the sale of the land. Your parents have to spend down the money until they have about $2000 each.

This is not hard to do - nursing home care can run from $4000 - $6000 per month. Being conservative and using the $4000 figure - that would be $8000 per month for both of your parents or $96,000.

But if all you can afford is the 1% now then take that. However, I would get clarification on what the taxes are, how long your parents are expected to live and find out about the Medicaid reimbursement from the estate when your parents pass.

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Answered on 12/12/13, 7:59 pm


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