Legal Question in Wills and Trusts in Texas
My husband is 75 and has congestive heart failure. He is on meds and is doing ok. I am 66 and in almost perfect health. We have been married for 7 years. He has a large ranch in Texas, and this Christmas he wants to give it to his grandkids. We are living on Social Security mostly--I take a thousand dollars a month out of my annunity. My opinion is that he should hold on to the land in case we need is in the future. I think that he thinks he is going to have to go to a nursing home, and he wants to get rid of his assets, so medicare will pay for his stay in the nursing home. Also, I think he thinks he is not going to live much longer. The land will go to his grandkids after he dies anyway. I have no interest in the land, but I think he should hold on to it in case of emergencies in the future.
What is your opinion?
3 Answers from Attorneys
As a general rule, he should leave it to them in his will (which he can still do at Christmas.) This offers him the most flexibility, and the kids get a stepped up basis in the property when he dies. (Stepped up basis means that when they sell the property, taxes would be based the gain in value beginning on the date of death. Otherwise, if he gave them the property during his life, then when the grandkids sold the property, they would pay taxes on the gain in the value of the property when your husband bought it.)
As for Medicaid planning, you need to speak with a specialist about that. There is a lookback period for transfers such as this.
This problem is too big for do-it-yourself advice. Your husband needs to consult with both an attorney and cpa to be sure he maximizes benefits of his legacy, taking care of you, and meeting his own needs.
You need to consult with some specialists that have been to this rodeo before. Medicaid will try to get his property to pay for the cost of his nursing home care. Sucessfuly transferring property out of their clutches requires a competent attorney who specializes in this area.
Mr. Leon is correct about the step-up in basis rule.
He also needs to consider that things may not work out as planned and he will be stuck with whatever arrangements he makes.
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The right of someone in a will in the stae of texas Asked 12/14/09, 1:06 am in United States Texas Probate, Trusts, Wills & Estates
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