Legal Question in Wills and Trusts in Pennsylvania

It would be risky for him transfer the house at this time: Does he have sufficient mental capacity to do so? If he might need nursing home care, he may be ineligible to receive medicaid, if that is required, for some time because of the transfer. It sounds as if he already has a Will. You are correct in worrying that your brother's ownership might incur liens on the property.

Is the amount of inheritance tax so great that it is worth these risks? and if it is, your father should be consulting with an estates lawyer, if he is concerned about the tax.

THIS RESPONSE IS NOT LEGAL ADVICE, SINCE I DO NOT HAVE ALL OF THE INFORMATION THAT WOULD BE REQUIRED, AND I DO NOT HAVE A REPRESENTATION AGREEMENT WITH YOU.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.

Your father needs to see an estate planning attorney as suggested by Attorney Jacobson if he is still mentally competent. Perhaps a revocable living trust could be created and the trust could hold the home. It will not be in your brother's name and the liens will not be able to attach but your brother could live there if he desired. There also would not be an inheritance tax issue. I'm not as familiar with the Medicaid rules in PA but that is something your father should check on when he sees the estate planning attorney. If he is getting Medicaid, he does not want to jeopardize that. And Medicaid will have to be reimbursed when your father dies so your father is going to have to weigh possible Medicaid issues versus inheritance tax and the cost for an attorney to draft a revocable living trust. They are not cheap - attorneys may charge anywhere fro, $1500 to $2500 for one depending on the size and complexity of the estate.

The time for estate planning was when your father was in his 70s or 80s, but he really needs to have his estate plan reviewed.