Owosso, MI asked in Real Estate Law for Michigan

Q: My parents who are in their 80's, and not in good health want to give me their property before they die.

They want to take their name off the property, and put my name on. I would like to buy the property from them, and put the money in an account with all our names on the account, so the money can be used for their funeral expenses. The money i pay would be about 30% of the value of the property. I would purchase it through my property management company which is an llc. Would i be able to do this, and not have the property taken away from me to pay for medical expenses, should they wind up in a care home down the road?

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1 Lawyer Answer
Kenneth V Zichi
Kenneth V Zichi
Answered
  • Fowlerville, MI
  • Licensed in Michigan

A: How lucky do you feel? ANY transfer for less than full market value with the money then being used SOLELY for your parents will likely trigger 'Medicaid recovery' ....

Don't try to be 'too clever' about this. If your parents want to transfer their PRINCIPAL RESIDENCE (which is an 'exempt asset') there are things that can be done such as a properly structured 'ladybird' deed, but what you are describing would be a gift that would disqualify them from receiving medicaid for a period of time.

Talk with an EXPERIENCED local elder law / estate planning attorney to review the WHOLE situation with your parents to insure you don't do anything that will cause issues down the line!

-- This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship.

I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice

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