Follow
Share
Read More
This question has been closed for answers. Ask a New Question.
Find Care & Housing
LivingSouth, I would also ask the same question that Babalou had asked... I am surprised an Attorney would recommend deeding the house to you, there is no way of knowing when one's parents might need Medicaid. If your parents need Medicaid and it has been less then 5 years since the house was deeded to you, then Medicaid could deduct the net worth equity of that house from any Medicaid funds... thus your parents would have major out of pocket expenses.

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.
Helpful Answer (1)
Report

Good point on the inherted house vs. changing the deed. I never though about those particular tax implications.
Helpful Answer (0)
Report

This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter