The Hidden Costs of a $1.00 Real Estate Transaction
Elder law attorneys at Steinbacher, Goodall & Yurchak, help clients answer the questions, “What happens if I die?” and “What happens if I don’t die, but get sick and need long-term care?” Another question that they face on a nearly daily basis is, “Should I sell my home to my children for $1.00? “
While this transfer may protect the home from nursing home care, there are many disadvantages:
• The transfer is still subject to the Medicaid Five Year Look-Back rule, and your children could be responsible to pay for your care.
• The home would be subject to your child’s death, divorce, lawsuit, bankruptcy, and/or disability. You could lose your place of residence and would have no control over the home because you no longer retain ownership.
• When the home is sold, the new owner may not be eligible for a tax break for the sale of a primary residence, and they could be faced with a large capital gains tax bill.
• Finally, without proper legal documents, the new owner could still be faced with paying Pennsylvania Inheritance tax.
These disadvantages are why the staff at Steinbacher, Goodall & Yurchak always consider an irrevocable trust. An irrevocable trust provides the protection you need.
For more information on how to protect your home and to schedule your FREE initial consultation, please call 1-800-351-8334 or visit www.paeldercounsel.com.
Steinbacher, Goodall & Yurchak is an elder care and special needs law firm offering quality representation to clients throughout Pennsylvania. Since its beginning, the firm has dedicated itself to practicing law with extraordinary standards of ethics and values. The vision of the firm has been to provide individuals and their families with a unique plan to protect their assets for their spouses and future generations, while providing for their immediate and long-term needs. To schedule your appointment, call 1-800-351-8334.