I hear a lot of sad stories; the saddest ones are those when an elder is getting kicked out of their own home. Someone (perhaps the alliance of bad kids) spreads the rumor that the best way to protect your home from the “State” or “IRS” or “Creditors” is to give it away to your kids. One version of this rumor says your kid must pay a dollar. The sad story is that many a “bad kid” gets the house and either takes out a mortgage (and doesn’t pay) or just kicks out their parents and sells the house.
News Flash!
The State won’t take your house (even if you are on Medi-Cal) while you are alive unless you don’t pay your property taxes. It is easy to protect your house from Medi-Cal, a Living Trust or any other method of avoiding probate that will protect your house. What about the “IRS” or a “Creditor” (or the person suing you)? Guess what… that “gift” or sale for a dollar will typically be considered a fraudulent conveyance and still available to the IRS, a Creditor or to pay a judgement from a lawsuit.
Moral of this story: DON’T GIVE AWAY YOUR HOUSE!!
If you really want to protect your assets, talk to me. I can talk you through the options that best fit your circumstances.
