Q: What is the best way to manage the sale of a small property which will be distributed to siblings upon death of parent?
My parents owned a small property in Ohio & wanted the sale of this to be distributed evenly among their 3 daughters. Father passed, and mother lived there until moving in with one of the daughters. Property just sold for just under $60k. We want the money protected in the event that she should need to go into a nursing home. Is it best to just create a savings account for the 3 siblings, set up an irrevocable trust? Mother has enough money to live on, so she would not need access to funds. She has a will stipulating that her estate would be divided between her daughters, and we have a POA. All parties live in Ohio (Franklin & Guernsey county).
A: Your mother should consult the attorney who drafted her will, and discuss her goals and if any changes to her will or estate planning are necessary. There also are Medicaid recovery issues she should consider. What she should do depends on all the facts of her situation. She should speak with her attorney to determine what is best.
A:
" We want the money protected in the event that she should need to go into a nursing home." This is a FAR more complicated statement than it might appear at first.
Please understand that if indeed your mother has enough money to live on, and can pay for her own nursing care, the nursing home won't go after this, and neither will the government. The ONLY time this becomes an issue is if your mother wants the federal government (medicaid) to pay for the nursing home. In THAT case, the government wants to insure the general taxpayers (you and I) don't pay for the care someone who can afford to pay for needs. In THAT case they will insist that the property or the money gained from selling it, be used to pay for your care first.
There ARE ways to 'protect' assets, but there are many 'catches' in the process, and your mother really needs to give away the property properly to insure this happens.
Seek local legal help as the 'Medicaid recovery' laws vary subtly from one state to another.
-- 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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