Expert: Dick Dennis - 10/17/2008

Question
QUESTION: Hi Dick, My sisters and I have a home in Montana that our mother lived in with a life estate. Drs. have diagnosed her with a brain tumor and she is unable to stay in her own home, so now she is in a nursing home. We would like to sell the house. Are we able to? We have been paying all the insurance and taxes for the last 10 years if that makes any difference. She is not capable of signing her name or understanding what is going on. I am her poa and also one of the owners on the deed. Thanks for all your help.

ANSWER: You may start selling the property now, based on your information. A life estate is only valid for as long as the beneficiary of that life estate lives in the property. However, there may be some incidental paperwork required at the closing of the sale, but it shouldn't hold up the sale any. The title company's attorney will make sure everything is valid. All this is providing your mother DOES NOT have interest in the title of the property. I do wish you well.

Dick Dennis          dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: One more thing, she is on Medicaid,will Medicaid want that income from the sale of the property? My mother would not be able to live in her home because of medical reasons. Thanks so much.

Answer
If the property is subject to a life estate, Nancy, and your mother is the recipient of that life estate, she does not own the property, therefore Medicaid will not be taking any money from her. However, if you misunderstood how she is involved with the property and she does own the property, then her interest in the property may indeed be taken by Medicaid. I strongly suggest you talk to an ESTATE attorney. He/she will be able to tell you exactly how to cope with this. I do wish you well.

Dick Dennis