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970 Reserve Drive
Suite 100
Roseville, CA 95678
(888) 887-0890
Safe Inheritance Corp.
For a free consultation, call (888) 887-0890 Ext. 9
Protecting the Family Home
If you have come to this website because you are receiving benefits and are looking for answers as to how to protect your family home, this page is just for you!
Estate Recovery
Both state and federal laws require reimbursement of State benefit costs from the estates of deceased beneficiaries or from anyone receiving estate assets after the death, unless specific exemptions or other limitations apply. The estate claim may attempt to recover up to the full amount of all expenses paid on behalf of a patient up to the entire value of the estate. Because most patients have been required to "spend down" their cash and savings to near-bankruptcy levels, usually the family home is the only remaining asset.
Exceptions
The State cannot require reimbursement under the following circumstances:
If you have come to this website because you are receiving benefits and are looking for answers as to how to protect your family home, this page is just for you!
Estate Recovery
Both state and federal laws require reimbursement of State benefit costs from the estates of deceased beneficiaries or from anyone receiving estate assets after the death, unless specific exemptions or other limitations apply. The estate claim may attempt to recover up to the full amount of all expenses paid on behalf of a patient up to the entire value of the estate. Because most patients have been required to "spend down" their cash and savings to near-bankruptcy levels, usually the family home is the only remaining asset.
Exceptions
The State cannot require reimbursement under the following circumstances:
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During the lifetime of a surviving spouse.
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For State benefit services provided before the beneficiary’s 55th birthday (unless the beneficiary is institutionalized).
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If the patient is survived by a child under 21 years old.
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If the patient is survived by a child who is blind or disabled (as defined by the Federal Social Security Act).
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Gifting?
Giving your home to someone is an option. Before you do so, consider carefully the following questions from the patient's point of view:
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Will we complete all the documents correctly?
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Will those who receive it allow me to return there if I get better?
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Will they sell it out from underneath me?
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What if someone files bankruptcy? Would we lose the home?
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What if we do it wrong?
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Unfortunately, if you fail, you won't find out until it's too late to do something about it, because it will be after the patient is deceased. And the people notifying you will be from the Estate Recovery team.
That's the wrong time to learn what you didn't know!
An Even Bigger Surprise
Let's assume that you were 100% successful in the gifting scenario above... your loved one has passed away and there was no estate recovery. A little time has now passed. For whatever reason, you decide it is time to sell the family home. After the sale is completed, your accountant informs you that you owe $100,000 in additional taxes due to a capital gain on the sale of the family home.
Can this be true?
Unfortunately, yes! When you received the title to the property, you also inherited the basis in the property. (If you're unfamiliar with this term, think of it as the yardstick used to determine a capital gain when you sell a property.)
A Better Way
Can all of this be avoided? Yes. Using the proper methods, the home can avoid estate recovery. You can also minimize or eliminate a capital gains tax on the subsequent sale of the property.
If you are concerned about preserving your family home, just email us. We can help you:
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Avoid Estate Recovery
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Minimize Capital Gains on Subsequent Sale
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Protect the Patient's Rights
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