My mother and I live in Alabama. I've lived with her in the house she owns (My name is not on the deed.) and been her caregiver for 6 years, and the house is willed to me upon her death. However, she is thinking of entering a nursing home because her condition is beyond what I am able to take care of alone and hired aides so far are not up to the task. If she does go into a nursing home, she has a little money that would be gone through first, then Medicaid could take the home. Can I live here until I die or otherwise move, or will I have to vacate immediately? I am disabled and receive a small Social Security check. Without this house, I would be homeless. I know spouses can stay in the home until they die or otherwise leave it. Can I do the same considering how long I've lived here? Thank you for any help you can offer.
For you, down the road when it comes time to sell the house which was change to your name, when it comes to paying capital gains the basis will be the date that your parents had bought the house. Thus if the house is worth $500k today and your parents paid $50k many decades ago, there will be a capital gains of $200,000 after the $250k allowed deduction when you sell. Now if you inherit the house, the net worth of the house will be the day you receive said house $500,000 and the basis would also be $500,000.
As for the house remaining in the family if you are a caregiver for two years, you would needed to be at a high level care type of caregiving [24 hour care]... thus your parents would be in a physical and/or memory condition that would have warranted being in a nursing home.