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Old 01-22-2016, 04:33 AM
 
Location: Backwoods of Maine
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I don't understand why more 55 to 65 yo people, who own their homes free and clear, don't own them in an LLC. I have 3 homes, and none of them are in my name. If someone wants to know my living arrangements, I'm a renter (a tenant of the LLC landlord). I also own no vehicles in my name.

"Own nothing, and control everything" - JP Morgan
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Old 01-22-2016, 04:42 AM
 
71,519 posts, read 71,694,121 times
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the answer is once you put them in a revocable trust or LLC THEY loose their exemption as a protected asset as far as medicaid goes . .

now the problem is the dollars count towards qualifying for medicaid the same as any investment or business you own and you may have to sell the house to qualify to even get medicaid. only homes personally owned , not in any other form qualify to have the dollars up to a certain point not count for qualifying .

Last edited by mathjak107; 01-22-2016 at 05:00 AM..
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Old 01-22-2016, 05:42 AM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 17,925,663 times
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Quote:
Originally Posted by Nor'Eastah View Post
I don't understand why more 55 to 65 yo people, who own their homes free and clear, don't own them in an LLC. I have 3 homes, and none of them are in my name. If someone wants to know my living arrangements, I'm a renter (a tenant of the LLC landlord). I also own no vehicles in my name.

"Own nothing, and control everything" - JP Morgan

If you do something like this in Florida - your house doesn't qualify for a homestead exemption (homesteads qualify for some property tax relief and creditors can't touch them):

Accordingly, I am of the opinion that property owned by a limited liability company does not qualify for a homestead exemption.

Advisory Legal Opinion - Homestead exemption, limited liability company.

Robyn
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Old 01-22-2016, 06:26 AM
 
Location: Near a river
16,042 posts, read 18,971,705 times
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Quote:
Originally Posted by mathjak107 View Post
the answer is once you put them in a revocable trust or LLC THEY loose their exemption as a protected asset as far as medicaid goes . .

now the problem is the dollars count towards qualifying for medicaid the same as any investment or business you own and you may have to sell the house to qualify to even get medicaid. only homes personally owned , not in any other form qualify to have the dollars up to a certain point not count for qualifying .
What "protection" is there as far as Medicaid goes, other than some version of an Irrevocable Trust, in which you lose control of your asset?
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Old 01-22-2016, 08:16 AM
 
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a home is a "protected asset " . it can't be taken by medicaid if you claim you intend to go back to it or have a spouse living in it .

but the biggie is the fact the value of the house does not count up to a certain point l as far as qualifying for medicaid .

put that house in a revocable trust or LLC and the dollars count towards qualifying . you may actually have to sell the house to spend down assets to qualify .

if you put the house in a revokable trust or LLC all dollars count .
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Old 01-22-2016, 09:53 AM
 
662 posts, read 477,547 times
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Well, just curious here...what about putting it into an irrevocable trust?

And can someone please show me a reliable, verifiable source that you can keep your home? At least in NC? The article I linked is the only one I came across, and one source does not a law make. So, a call out again: is it true?? I get to go home (and keep my car/stuff) and just can't sell it...or if I do, then have to pay medicaid? ie: I can live there without debt, and they'll take it from my estate after I'm gone?
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Old 01-22-2016, 10:00 AM
 
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11: How can I protect my home?

Medicaid allows for the applicant to retain a principal residence. Your home is considered exempt property. However, unless there is a surviving spouse, Medicaid will be reimbursed if the home is sold after your death by a lien being put on the home. This is where it is advised to sell or transfer to an irrevocable trust such as the UltraTrust™

Her biggest question was, "Will I lose my home?"

A Common Question Indeed

For a great many people who need Medicaid benefits for long term care, the home makes up most of their life savings. Often, it's all a couple has to pass on to their children.

You may not know that the home is an exempt asset according to Medicaid. It continues to be exempt as long as the community spouse lives there. However, after both the ill spouse and the healthy spouse pass away, the property may no longer be protected.


when meeting the asset requirements to go on medicaid a home in your personal name does not have the dollars counted as an asset up to a limit set each year .
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Old 01-22-2016, 02:11 PM
 
6,616 posts, read 3,744,488 times
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Quote:
Originally Posted by Nor'Eastah View Post
I don't understand why more 55 to 65 yo people, who own their homes free and clear, don't own them in an LLC. I have 3 homes, and none of them are in my name. If someone wants to know my living arrangements, I'm a renter (a tenant of the LLC landlord). I also own no vehicles in my name.

"Own nothing, and control everything" - JP Morgan
Why don't you claim ownership of your property? What's the main point of doing that, for any person, not just you?

My understanding is that LLCs don't protect a person from damages liability, tax liability, or anything like that. Is that correct?

If you have your home in an LLC that you own, don't you lose your homestead exemption?

I can see it might make sense if a person really runs a business that is formed as an LLC, but for ordinary people who don't operate a business, that seems as if it would cost a person more money in the longrun. ???? You would have to file two tax returns, right?
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Old 01-22-2016, 03:10 PM
 
Location: Backwoods of Maine
7,112 posts, read 8,150,955 times
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Quote:
Originally Posted by bpollen View Post
Why don't you claim ownership of your property? What's the main point of doing that, for any person, not just you?

My understanding is that LLCs don't protect a person from damages liability, tax liability, or anything like that. Is that correct?

If you have your home in an LLC that you own, don't you lose your homestead exemption?

I can see it might make sense if a person really runs a business that is formed as an LLC, but for ordinary people who don't operate a business, that seems as if it would cost a person more money in the longrun. ???? You would have to file two tax returns, right?
Yes, but the LLC is a holding company, not a business. It is also owned by a large group of related people. We actually don't need a homestead exemption...and this has not been done for the purpose of collecting any Medicaid benefits (we have private insurance).

We chose this entity for privacy, freedom from lawsuits, and other reasons, as advised by our attorney. The owners of the LLC are not known, and difficult to determine, as it is not an in-state LLC.

No attempt to circumvent any laws went into this decision. I just wonder why more don't do it?
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Old 01-22-2016, 03:22 PM
 
71,519 posts, read 71,694,121 times
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There really is not much of an advantage unless it is an investment property and not your home
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