Life Estate Deed And Its Uses In Medicaid Planning

Medicaid planning can be very difficult to understand but understanding the uses of a Life Estate Deed in Medicaid planning can help you land a few lucrative annuity sales per year.

To have a better understanding of all of the aspects about Medicaid planning you should read Transmittal 64 the Section of dealing with Annuities (Medicaid Annuities and Life Estates). To give a brief synopsis of what you will read in the section about the life estate deed, it explains that a person can not have constructive ownership of the property, and that just having a " life estate in the property " does not mean you have ownership as long as you do not have the right to sell, mortgage, or convey the property. So the deed should be written giving you and your spouse ( the right to live in the home ) a life estate in the property with "no rights to sell, mortgage, or convey the property". In addition to this statement another statement must be made giving the property or the " remainderman" to the children for or other valuable consideration. Quite simply your giving the property to the children for and giving yourself the right to live in the house for the remainder of your lives. The waiting period to qualify the transaction as a non countable asset is now five years.

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The information contained in this article is to give you a starting point in educating yourself, and it is advised that you should read Transmittal 64 and completely understand it before speaking about the importance of the deed transfer. Matter of fact is this is just enough information to get you in trouble, remember that you are on an attorney, so speak to an Elder Law attorney in your state before proceeding.

Life Estate Deed And Its Uses In Medicaid Planning