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NY Family Home Protection Lawyers
If your family is like most, the family home may be your largest asset. However, even the largest and nicest home can fall victim to the rising costs of healthcare. So how can you best protect your home while achieving other planning objectives?
Family home protection planning at Cona Elder Law involves several different strategies. Because there are no one-size-fits-all solutions, our experienced Long Island elder law attorneys will work to develop a plan based on your family’s individual circumstances.
How Can You Protect Your Home?
There are many ways to protect your home, each of which may have Medicaid planning consequences and tax consequences. All of your options should be carefully explored with an experienced elder law attorney in New York.
Family Home Protection Plan Strategies
Outright Transfer
You may give your home to another individual, such as a spouse or child, by signing a new deed in that person's name. This will assure that Medicaid can never place a lien on your home and that the value of your home will not be countable as part of your estate assets, thereby potentially reducing estate taxes. However, you may lose your real estate tax exemptions, such as STAR or Veterans deductions.
Further, the new owner may incur significant tax consequences, particularly if the house is not that person's primary residence.
Irrevocable Trust
You may transfer your home to a Trust. An irrevocable trust will protect the home from Medicaid and, like the life estate, you will keep your real estate tax exemptions. Your heirs will get certain tax advantages and will inherit the home without the need for probate of your Will. Unlike the life estate, the house may be sold without losing any capital gains exclusions.
The Life Estate
You may give your home to another individual and retain a life estate. The retained life estate means that you have all rights and obligations regarding the property during your lifetime. For example, you have the right to reside in the home for life. You will also be responsible for upkeep and taxes while retaining all real estate exemptions.
Upon your death, the property will pass to your designated beneficiary automatically (i.e. without the probate of your Will). The transfer of the home with a life estate protects the home from Medicaid, as a lien can never be asserted against the home.
The life estate also has tax advantages for your beneficiary, which may reduce or eliminate capital gains taxes when the house is sold.
Contact Cona Elder Law to Protect Your Home in New York
While your primary home may be your most valuable asset, it typically will not disqualify you from receiving Medicaid benefits if you meet certain criteria. However, after you pass away, New York has an estate recovery program that involves liquidating your property to reimburse the state for the Medicaid benefits it provided.
The experienced Elder Law attorneys at Cona Elder Law offer multiple strategies to protect your family home. By developing a personalized strategy, you can ensure the home stays within your family. We’ll guide you through the process, so you can focus on enjoying life’s precious moments.
Contact us at 631.619.2533 to learn more.
