TURNING HOUSE OVER TO CHILDREN OUTRIGHT SO YOU DON’T OWN IT ANYMORE
4 Benefits:
(1) Avoid nursing home costs/ Medicaid getting the house if you have to go into nursing home AFTER 5 years
(2) Gives responsibility/ up keep to children
(3) Transfers property to avoid probate
(4) Children responsible for taxes
(5) If child dies, who gets the house
Major Problems:
(1) Children/ new owners can kick you out and sell the house
(2) (2) If children don’t pay taxes or sewer charges, town can foreclose
(3) (3) If there is lawsuit against children, lose house or lien
(4) Lose senior citizen and/or veterans tax, life line, homestead
(5) If child does not live in house, high capital gains tax
(6) If child dies, the child’s heirs can kick you out and sell the house
