Submitted by Grimes66 on Thu, 05/06/2010 - 08:31
Posted in
About 8 years ago we set up my dad's house so that he has a life estate and the three kids get the house when he dies. The documents state that he's responsible for the property taxes and upkeep of the property. He's now going into a nursing home and medicaid will be taking his small income. My question is how can he pay for the taxes and maintenance of the house when he has no income? What options do we kids have?
Editor's Response
There are actually several solutions to this fairly common problem. Because just your dad and and siblings are involve, with proper planning and professional guidance, it should not be a huge problem (assuming you and your siblings get along). (1) With the help of her children, your dad can rent the house to a tenant and use the income to pay all of the expenses related to its upkeep. Of course, any excess income will have to go to the nursing home. Nevertheless, this is an attractive option if you or one of your siblings have the time to manage the property (being a landlord is rarely as easy as it seems). (2) You and your siblings can simply divide the costs of maintaining the house between you. Since you all stand to benefit from the ownership of the house at some point, this investment on your part may be worthwhile. (3) You can sell the property. Before taking any of these options (especially the last) I would consult a Massachusetts elder law attorney. There may be tax and other issues involved with any of the three options that could alter your decision making process. Good luck. For more information, visit our Massachusetts Elder Law Discussion Forum.