For those among us who have worked hard to leave a legacy behind, the transfer of our home to the next generation is a priority concern. For some, the dream is to allow their grandchildren to grow up there- for others, it is to transfer the house as an asset, to be sold and the profits equitably distributed.  In either instance, the key to an optimal transfer is to plan out the timing and method of transferring ownership, remembering that residency may be continued with a life estate.  An optimal transfer of ownership is particularly important if the homeowner has no Will or Durable Power of Attorney, or if the homeowner is considering applying for Medicaid over the next 5 years.  With Medicaid especially, improper gifting will cause an applicant to be penalized, and an applicant s spend-down will be more limited.

Of course, other factors should also be considered when timing an optimal transfer. As a homeowner begins to suffer from the health problems normally associated with aging, daily maintenance tasks can become strenuous, disheartening chores.  Vacuuming, dusting, mowing, shoveling snow, taking out trash, making repairs- the list of a homeowner s responsibilities is a long but necessary one.  Rising health costs can also detract from a homeowner s ability to keep their home in good condition, as less money is available for updates like a new roof and exterior paint.  Indeed, once a homeowner becomes unable to properly upkeep their property- physically or financially- the home becomes much harder to sell (not to mention live in) later on. 

Don t let an ill-timed transfer of ownership end up costing you the legacy you ve worked so hard for.  With the help of a knowledgeable Estate Planning attorney, you can protect and provide for you and your loved ones- no matter what your future may hold.