How to avoid the gov't taking a home (Mill Creek: real estate, mortgage)

[callitma]

I have an older relative who is owns a home in Mill Creek. Both her and her husband are near death. She fears that when they die the gov't will take the house and wants to know what the best way to avoid that is. Should she put the house in someone elses name? She thought about that, but is concerned that the house could be taken from her if he has financial problems and she is still here. She doesn't know if she will go next week or in a couple years and she just wants to make sure the house is secure.

[Ultrarunner]

What about a Living Trust drawn by an Estate Attorney?

She/they retain control until they die.

[Ira500]

As long as her mortgage is current if she has one, and is current on her property taxes, the government won't take the house. She should definitely have a will which spells out who gets the house. In that case, the only way the government could take the house is through eminent domain, i.e- they need the space for a park or a freeway, etc.

[allforcats]

Ultrarunner and Ira500 together have perfect, different solutions.
And, as stated, no one will take a home if the mortgage and property tax payments are up to date.

A will (Last Will and Testament) ensures that whoever one wants to inherit something, will. However, the items mentioned in the will must go through probate (a court process which can take up to a year), and at the end of the process, the estate of the deceased person must pay the costs of the court process. A will drawn up by a lawyer costs very little.

A Living Trust must also be drawn up by a lawyer, and costs quite a bit more to do than a Last Will and Testament. Valuable possessions, such as a home, car, jewelry, coins, bank accounts, etc. are transferred into a trust; the person transferring them retains control and use of all these things until death. The trust specifies a beneficiary, the person(s) who will own the items after that death. At the moment of the previous owner's death, the beneficiary now owns the home, car, etc. There are no court hearings, no probate, and no costs associated with "transferring" ownership and use.

When a person protects their valuable possessions in either a will or a living trust, they can thereby pass the possessions to someone they want to give them to.

[CityGirl72]

Also, if they add the person (say a son or daughter) to the deed of the house then it will go to them automatically without probate.

Like "Mr Grandpa and/or Mr Son"

[allforcats]

Originally Posted by CityGirl72

Also, if they add the person (say a son or daughter) to the deed of the house then it will go to them automatically without probate.

Like "Mr Grandpa and/or Mr Son"

yes ... AS JOINT TENANTS. That's the legal condition that would allow that.
But the added person MUST pay the person(s) already named on the deed an amount of money, which can be low, but for which that person must receive a receipt. You need a lawyer to do this in a manner that will be legal and safe.

[BostonBorn]

A lot depends on their family situation, but one of many potential approaches is to re-title the home in someone else's name (someone they darn well trust with their lives) and have that person grant them a life estate.Again, there are myriad possibilities; definitely have them talk with a lawyer.

[Ultrarunner]

Originally Posted by allforcats

yes ... AS JOINT TENANTS. That's the legal condition that would allow that.
But the added person MUST pay the person(s) already named on the deed an amount of money, which can be low, but for which that person must receive a receipt. You need a lawyer to do this in a manner that will be legal and safe.

I frequently would come across California Titles vested... "Joint Tenancy with right of Survivorship" with the consideration being "Love and Affection"... so no actual monies changed hands.

I don't see it as much anymore... mostly I find Living Trusts being preferred for tax and control issues...

I would still see an Attorney for peace of mind and to know your wishes will be carried out.

[jinj]

Get a will.

Living trusts aren't the magical thing people thing they are. Probate is still required with this I think, just a shorter time, just like you had a will.

[Ultrarunner]

Originally Posted by jinj

Get a will.

Living trusts aren't the magical thing people thing they are. Probate is still required with this I think, just a shorter time, just like you had a will.

I've been charged to settle/distribute estate assets several times... though I'm far from being an expert... rather, I'm conscientious in following out the wishes of the deceased.

There was absolutely no Court involved with two of the three Trusts and the third one had to go to Court because while the Trust was valid... not all of the decease's Real Estate had been properly transferred into the Trust...

Every Trust that I've come across has a Will as part of the package...

This is something you need to do right... see a professional in your area.