He's ill & could need long term care within 6 mo. He's not "selling" it to us for a dollar or passing it on to us free of charge. It is a partial inheritance, but we do have to buy it with a full blown 20 year mortgage, but at 2/3 the appraised value. Dad will then split that money and give half to each of my husband's 2 siblings as their inheritance. But if Dad has to be hospitalized, have surgery (cardiac disease), or requires long term in-home nursing care, could the hospital, Drs. or insurance company come after us for payment, or somehow put a lien on the home even though we bought it? I've heard that we would have needed to have the house in our name for at least 5 years or they can take it. Dad has a small savings account (about $5k) and a CD for about the same amount that he's tagged for his funeral expenses. $5k doesn't go far these days. My husband & I have only about $7k (combined) in our 401k plans. Dad's daughters certainly won't be setting aside any part of their third to help us cover any medical expenses. Dad really wants his home to be passed on to his son. We've been the sole care-givers for Dad for 5+ years now (although both sisters live close by they've provided little assistance or support) We truly have tried to respect his wishes, but we don't want to go broke AND end up with a mortgage and no home to show for it. What are our risks, and what other options might be out there for us?
Hence, the taxpayers, as represented by the government - Medicaid, prefer dad's bills be paid for from his (whatever size) fortune and that inheritance be SOLELY available if dad's bills do not have to be paid by taxpayers.....else the tax payers are really subsidizing the family inheritance. This is regardless of the love and sweat equity you have poured into caring for him for 5 years.
If dad lives longer than the $ he keeps, and family does not step up to pay for his expenses, and he needs Medicaid, they will penalize him making him ineligible for a period of time to make up for the gifted assets.
This causes family trauma.
There s a legal way to pay you for caregiving. As PS mentioned an attorney can help. Just do not assume you can take over the house.
For tax reasons, Medicaid reasons and family trauma reasons, it is much better to wait until the dad passes to split his assets......even if it is dad's idea and intended to be a gesture of love and appreciation.
But, on the other hand.
What would happen to Dad if he needs to go into a nurcing home? Who's gonna pay for that if he only has lets say $10,000 to his name. If he lives over a yr in a nurcing home that $10,000 will be drained from nurcing home cost and other.
If your father only has $10,000 to his name? He will need the house to pay for the nurcing home if that time comes. Medicaid & Medicare will seek the home to pay for bills if he goes into a nurcing home if the $10,000 is exceeded. Also, if Dad only has $10,000 to his name? And you kids take his home out of underneath him? What type of care will you want your father to have at the time of a nurcing home? Keep in mind, as for nurcing homes,care and treatment. You get what you pay for!
It all up to you all to decide what nice of care you want to see your father have. Forget about Dad's $10,000 he has. That's pennies when it's time for a nurcing home. You all can give your father a better life in a nurcing home then greed splitting the value of his home between you all. He will need that home to pay for his nurcing home & care down the road. A non-greedy thought to keep in mind.
Who ever is the executor of your father's living Will. Should be the one that Dad gives the home to. At time of death that executor is the one that splits after sale of the home. For this to happen requires trust in one another or a attorney to do the split. Your father needs a living Will and a Medicaid Trust in place. He will also, need a POA if he don't have one already.
My best advice would be, stop thinking about the Will & Trust and enjoy your father now while you have him. Follow your father's wishes with one another. If it requires giving Dad's home to the nurcing home for better living I would do so. Dad worked for many yrs to have what he has. I would hate to see a elderly person rough it just so the kids has a dime. Dad needs to seat down with a attorney now. Or you all will be fighting at his end. Greed causes wrong thinking and fights towards one another. When I die there will be no Will. I will give it away before I die to avoid family fighing. If I have any money left after I die? That means I didn't do my job right lol. I earned my money for I to have a better life and a great retirement down the road. While I was alive I gave my kids the rights and wrongs to know to have them a better life. I paid for their schooling to have a better life. They have their money for their better life. The money I earned in my life is for me not for my kids.
Good luck!