Estate Planning Isn’t Just For The Elderly

Group of elderly people working on a jigsaw puzzle at a table.

Three Ways To Transfer Real Property

Transferring a residence for the purpose of qualifying for Medicaid is not as simple as doing a quit claim deed to your children. It is a lot more complicated.

There are generally three ways that one’s residence can be transferred to qualify for Medicaid:

  1. Transfer without the reservation of a life estate — this option has significant issues and problems
  2. Transfer with the reservation of a life estate — this option also involves significant issues and problems
  3. Transfer to an irrevocable income-only Medicaid asset protection trust — this is the best option

Are you considering transferring your home to protect it? We can help. Call the Westchester County, New York, Medicaid/asset protection planning attorneys at Enea, Scanlan & Sirignano, LLP: 914-269-2367.

Transfer To An Irrevocable Medicaid Asset Protection Trust

Transferring the residence to an irrevocable trust (also known as a Medicaid asset protection — or MAP — trust) provides many more advantages and few of the disadvantages of the other two methods, particularly as it applies to Medicaid planning.

  • For income tax purposes, the creator or grantor of the trust is considered the owner of the transferred property, and the transferee can sell the property during the lifetime of the transferor with little or no capital gains tax.
  • The gift is not a completed gift, and therefore the property comes back into the grantor’s estate for estate tax purposes and allows for a step-up in basis to date of death value at the grantor’s death.

Each of the three methods has more advantages and disadvantages than have been presented here. The only way to be sure of which method is the best for you in your unique situation is to talk to an experienced Medicaid planning attorney.

Do You Need Help With A Transfer? Or Have Questions? Call Us.

If you would like help in completing a transfer of real property or have questions about the process, we can help. We are the experienced elder law lawyers at Enea, Scanlan & Sirignano, LLP; call us at 914-269-2367 or complete the online form. From our offices in White Plains and Somers, New York, we help people throughout Westchester County and the surrounding areas.

Enea, Scanlan & Sirignano, LLP