Legal Question in Elder Law in Pennsylvania

Inheritence -How to acheive 50/50 split when brother is

Both of my parents in their 80's and own house free and clear. I have one brother in his 40's who never actually left the nest. Still living at home. (Robert from Everybody Loves Raymond) He recently approached me about Mom and Dad's long term needs and the ''5 year look back''. They are considering titling the house over to him. However their will states a 50/50 split between us. They still want to honor this. What is the best way that I can get my fair share and for him to get the house? My wife and I really can't afford to pay for 1/2 the maintence and taxes on this house. We both want to make sure Mom and Dad are taken care of before they die. I'm concerned that he may be trying to influence them a certain way. They have no real savings, but the house is very valuable, likely to appreciate in the next few years.


Asked on 6/18/07, 2:04 am

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Inheritence -How to acheive 50/50 split when brother is

You asked about planning for elder care to protect substantial assets.

There are a number of alternatives for protecting assets in the occasion that elderly parents may need long term care. An elder law or estate planning attorney can assist with this.

A very easy manner of accomplishing your one desired goal is to have your parents "sell" the home to the brother, take back a full mortgage and reserve a "life estate" in the property.

Your flightless brother gets a home essentially protected from the lookback. Your parents keep their home and the right to remain in the home FOR LIFE. And their estate doesn't suffer as it holds the mortgage rather than the title. Further, your parents can "gift" a portion of the mortgage receivable (tax free) to you each year, or a lump sum, subject to taxation, or in any other manner.

This is just a suggestion based on the bare facts that you presented. But you already realize that titling the property in your brother's name is tremendously problematic. Further, while the lookback is five years, the analysis of may look back farther if the motive of a transaction was simply to protect assets in the case of long term care.

As to long-term care. It is also worth considering that in-home care is covered by Medicaid (but you must fight for it) and is actually cheaper to the program and better for the person involved until it is absolutely necessary for a person to be hospitalized. No elderly person should be sent to a retirement home while they have a home and family available.

Regards,

Roger

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Answered on 6/18/07, 10:01 am


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