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I believe I read that a widowed spouse can keep the home as long as A) he/she continues to live in the home and/or B) does not remarry. The engaged couple wants to live in her home. Appears to me the widowed spouse is w/in the law allowing her to continue living in her home until she dies. Once remarried though and still living in her home it appears to be against the law that disallows a remarried widow to keep ownership. So one rule appears to apply in this situation, but the other does not. I was somewhat confused when they said they would remarry and live in her home and he would rent out his home.

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In our state the estate recovery can be delayed until the surviving spouse is deceased OR divorced. If the surviving community spouse remarries and he moves into her home, it appears all is OK- unless she divorces. There has been multiple references that she can remain in the house until death. If she divorces she is not dead yet. One rule - the ability to remain in her home - seems to be a conflict with the other rule suggesting once she divorces she would not be allowed to stay in her home even though she has not died. Remarriage or divorce change a persons financial standing.
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If there's a living trust, it probably depends what the trust stipulates. My MIL owns a home with her boyfriend (you could say common law husband but its not recognized in CA). When she passes, the trust states he can live out the rest of his life in the house and when he passes, it goes to her 3 and his 2 kids. He is not allowed to bring in a non-blood relative and must maintain the home and pay all taxes. He cannot remarry and bring his wife into the home. My former neighbor had the same trust & stipulations when his wife passed, he was allowed to stay in the house but had to move out when he remarried. The house was turned over to the kids.
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I would think that it depends on who holds title, what the deceased person's estate provides, and similar legal issues.
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Sorry but you post is confusing. Are you talking about a person whose spouse was on Medicaid and she was allowed to stay in the house and Medicaid recuping monies by selling the house upon her death?

I couple I know were both widowed. They married and lived in her house. She passed before him. Her will allowed for him to be allowed to live in the house until he passed and then it would revert back to her kids. He did have a girlfriend that moved herself in and upon his death she was asked to leave. (She had a house of her own) Now, if they had married, she still would have had to leave the house because it wasn't his.

So, we need to know what you are reading, a will or Medicaid rules.
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Whose rules or laws are you looking to follow? Medicaid in the US? Who is advising you?

You need to consult a verified eldercare attorney familiar with the laws of the local jurisdiction .
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