I want to buy my mother’s house using a land contact, will this disqualify her from Medicaid?
A few months ago, my mother moved into an assisted living facility. I what to buy her house and use it as a rental property. In 2 ½ years her savings will be depleted and she will apply for Medicaid. (House is paid off). This house is in Illinois and is now empty.
I would like to establish a land contract (also called owner financed loan) with my mother to buy this house. With this agreement, I will buy the house at fair market value. For the next seven years, I will make equal monthly payments into her account at the assisted living facility, until the house is fully paid off. Making payments to the assisted living facility will ensure that all the money will be used for her care.
I would love to buy the house outright but it is very difficult to get a loan these days. My family has owned the house for almost 50 years and we want to continue to keep it in the family’s name.
Also does the Deficit Reduction Act of 2005 (DRA) allow for such an arrangement?
Notice the excerpt below:
“The DRA provides that any purchase of a note, or any loan or mortgage, will be treated as a transfer, subject to penalty unless the following conditions are met:
• The repayment terms must be actuarially sound;
• Payments must be made in equal amounts during the term of the loan with no deferral of payments and no balloon payments; and
• The note, loan or mortgage must prohibit cancellation of the debt upon death of the lender.”
Taken from: https://www.cms.gov/DeficitReductionAct/Downloads/BackgrounderTOA_.pdf
Categories: Mortgage Tags: assisted living facility, balloon payments, deferral, deficit reduction act, deficit reduction act of 2005, land-contract, medicaid, rental-property, repayment terms, seven-years
estate planning
My father passed away about 6 months ago and my 85-year-old mom wanted to get her estate prepared so her 5 children would get equal inheritance. We made an appointment with a recommended estate-planning attorney and thought we were going to prepare a simple will. He recommended a a) Simple Will $275.00, b) Durable Power of Attorney $195.00, c) App of Healthcare $195.00, d) Pourover Will $275.00, Medical Income Only Trust (Irrevocable Trust) $1,950.00, and a e) Deed of Conveyance $275.00
Categories: Mortgage Tags: after-the-first, attorney, chances-as-mom, circumstances, conveyance, durable-power, estate-prepared, family, house, irrevocable, medicaid, medical, medical-income, recommendations, understand-much
Buying My Moms property from medicare
I have problem concerning My Mom home in Ohio, she is now on medicaid (and is in a rest home) and according to the Law neither she or I can keep it. Due to the fact the way she had the deed to the home places set up.
Categories: Mortgage Tags: deed, fact-the-way, from-the-state, lawer, leagal-claim, medicaid, medicare, mom, moms, Property, realestate agent, rest-home, sell-the-place, seven-years, state, state of ohio, Tho
LLC Civil arbitration
My wife and I were members of an LLC. All the members resigned their posts and the LLC was dissolved in Oct. 2009
Categories: Mortgage Tags: assets, avenues, civil arbitration, close-the-doors, corporation, debts, doors, Economy, from-the-court, llc, managing, medicaid, members, Personal, personal account, reference, small claims, the-corporation, these-accounts