Tuesday, March 6, 2012

Free Rent, But Not a Free Ride

Ann wants to ‘properly document’ her arrangement for her living situation now that she has moved in with her daughter, Letty, permanently after her recent debilitating stroke. 

Ann has decided (with Letty’s agreement) to put an addition onto Letty’s house and live there so long as she is able.  She thinks that will best preserve her money and maximize her comfort in the years she hopes she will be living there. 

One reason to put it in writing is to clarify and assure that the house addition will not be considered a gift to Letty.  As a gift, it could prevent Ann from later receiving Medicaid if she ever needs help for nursing home costs. 

After talking with her attorney, Ann has decided what she wants.  Ann will pay all the expenses of adding the two rooms to Letty’s home from selling her own house.  In exchange, Letty will give Ann a lifetime right to reside in Letty’s home rent-free.  However, Ann will contribute to the costs of food and household utilities. 

Importantly, Ann will pay at least monthly for her care, driving, or other needs -- whether done by her children or by others, based on their written logs of help provided. 

Ann is protecting her eligibility for Medicaid as a precaution.  She is trying to prevent misunderstandings between relatives as a mother who both needs and loves her children. 

To discuss your options for formalizing how your family is handling changes, call our office at (815) 436-1996 to set an appointment.  ©2012 Gruber Law Office, Ltd.


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