Philadelphia, PA asked in Estate Planning for Pennsylvania

Q: My father wants to purchase a home using his VA home loan he currently gets community based services (home care aid)

In the event of death will the state try to get the property to pay for his services ?

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1 Lawyer Answer
W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
Answered
  • Boyertown, PA
  • Licensed in Pennsylvania

A: The VA home purchase benefit entitles the vet buyer to finance 100% of the purchase amount of the property, and consequently, for several years after the purchase, there is little or no equity in the property.

When federal funds (administered by the State) are expended for end of life services, it does give rise to an obligation to reimburse the program after death. Normally, a claim is made against the estate.

If there are insufficient funds in the Estate to pay claims, the usual course is to sell assets of the estate to satisfy the claims. However, when there is no equity to be realized in any asset, the asset may be distributed in kind to the heirs.

Once a home has been purchased by a qualifying veteran with a VA mortgage, he can add anyone he chooses to the title.

Adding a joint owner to the title would not prevent the State from placing a lien on the property, but the lien would only attach to the interest of the vet who received services.

You should meet and discuss these issues with a lawyer whose practice includes real estate transactions and elder care.

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