Follow
Share

I don't know what is the best thing to do in this situation. I don't want it to affect my credit or my Fasfa #'s for my childrens college funding. She doesn't have much money but how do I find an alternative?

Find Care & Housing
SGarrPurple, welcome to the forum. Could you give us some basic information about your Mom, such as does she have any memory issues, or major health problems? That would help us get a better understanding.


My Dad had my name placed on his bank/checking account, it read "Dad's name and Daughter's name". It wasn't a joint account but I could sign a check in my name. That made it so helpful when it came to paying Dad's bills from his checking account.


As for the house, this can be very tricky and costly for you if Mom puts your name as a co-owner or even prime owner on the Deed. If placed as co-owner, then you would be responsible for half the cost of home-ownership. If your Mom should fail to pay property taxes, the County/City could require you to pay the whole amount. If your Mom needs to be in a nursing home via Medicaid (which is different from Medicare), half the house could be placed in a lien to pay for Mom's care. Medicaid is taxpayer funded.


If Mom wants to take her own name off the Deed and replace it with your name, that's another whole ball of wax to contend with. You would be responsible for everything house related if your Mom is unable to pay. And when the time comes to sell the house, the Federal Income Taxes would require you to pay profits going alllll the way back to when your Mom had bought the house. Thus, you would need to have Mom's closing statement on the house for the price she paid. Example, if Mom paid $30k for the house and you sell it for $130k, then the profit would be $100k which is taxable, minus any current updates to the house. The house would be viewed as an Investment Property and not Primary Residence (unless you lived there), thus even higher taxes.


Now, if Mom gives you the house in her Will, and you sell it, the Federal Income Tax cost basis is what the house was worth when you inherited the house. Example, if that house appraised at $125k the day you received it, and you sell at $130k, then you are only taxed on $5k, minus any current updates to sell the house. Now, if Mom is being cared for via Medicaid in a nursing home within a 5 yr time frame (can vary from State to State), that another tangled mess regarding the house, the profit could go to Medicaid for reimbursement. Clear as mud, right?


As others here had recommend, see an Elder Law Attorney as State laws could be different regarding those above items.
Helpful Answer (0)
Reply to freqflyer
Report

You can ask a CPA what the tax and Fafsa loan impact would be if she adds your name to the title, and then ask a Medicaid Planner for your home state what the impact would be should she ever apply for Medicaid. FYI in most states the financial "look-back" on the app is 5 years, if they see a reason to dig that far back. It may be viewed as "gifting" by Medicaid, which would affect her ability to qualify.
Helpful Answer (1)
Reply to Geaton777
Report

I was onlybon Moms accts as a signer not part owner. The house may cause problems.
Helpful Answer (1)
Reply to JoAnn29
Report

This is the time that you and your mother see an Elder Law ATtorney and discuss all about a POA, what it is, how to keep records, whose name goes on accounts and as what and who signs, how to do a personal spending account for her, how to manage and keep meticulous records and etc. This isn't something to just go to bank and have her put your name on. That's melding finances and is not a good idea. You can otherwise, if she has no assets, make yourself the representative payee on SS and manage her SS for her life and her care; separate account, and a yearly accounting to the Social Security administration.

You need legal guidance now in all this. Not really the opinion of a bunch of caregivers who know nothing of your situation or the state you live in and its laws.
Best of luck to you both.
Helpful Answer (2)
Reply to AlvaDeer
Report

Ask a Question
Subscribe to
Our Newsletter