SPECIAL CONSIDERATION – PROTECTION OF YOUR HOME

For individuals 75 years or older or those under that age that have a medical diagnosis, consideration should be given to taking steps to protect the home.  This is usually a family’s most valuable asset.  The usual technique for accomplishing this objective is to establish a Trust for the benefit of the intended beneficiaries of the individual’s estate and transfer the deed to the home.  There is a 5-year Medicaid lookback to this transaction.  A properly-designed Trust can retain the primary residence exclusion and the step up in basis on death.

The grantor usually reserves the right to live in the home with his or her family.  The grantor is usually responsible to pay all of the maintenance expenses including real estate taxes, insurance, and utilities.