Q: We had plan to give daughter house in exchange for care in our old age. Should we refinance in their name or keep ours
Daughter and husband already live in home and they would pay remaining balance of mortgage. They keep the house and we can remain there as well until we die; he is a medical nurse to assist in our senior care. We want to refinance and take a small home improvement loan out on the new mortgage. In light of the penalty period, should we keep mortgage refinance in our name or is it okay to put it into theirs?
A: PLEASE do not do this without the assistance of an experienced elder law attorney. Your plan is fraught with peril. Many before you have gone down this path much to their regret. There are too many things that could go wrong to list, so I will just list a few. Think about what happens if they don’t pay the mortgage. Or what happens if they get divorced or one of them dies or they get a judgement against them and the judgment creditor goes after the house. And there are more issues. Many more. You worked all of your life to get to where you are today. You owe it to yourself to protect what you have AND secure the care you need by obtaining professional advice. There are better, smarter ways to do this.
2 users found this answer helpful
A: Unfortunately, there is a lot more that needs to be known before you start making a transition such as this. You need to bind your daughter to such an arrangement. What if they place you in an assisted living home or nursing home just weeks after you place the home in their name? What if they relocate because of better opportunities? You should definitely see an attorney to assist with estate planning or elder care before going down this path.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
