Why You Should Never Give Away Your Real Estate

Giving property to a family member may seem like a simple estate planning solution, but it can leave you without control of your home and expose the property to divorce, creditors, nursing home costs, and estate taxes.In this episode of The Legal Exchange, Todd Lutsky and Susan Powers examine a Texas court case involving a couple who transferred their home to the husband’s parents, continued living there, and later faced a complicated ownership dispute after divorce. They also discuss why estate plans and beneficiary designations should be reviewed during a divorce, how the caretaker child exception may protect a parent’s home from nursing home costs, and why retaining a life estate can preserve important tax benefits. Plus, Todd answers whether new assets can be added to an existing irrevocable trust and explains how married couples may protect a home and other assets when seeking last minute Medicaid eligibility.