Who do House Sale Funds Belong to?

[Jujubee2222]

Jurisdiction

New York

My stepmother is in a nursing home and is on medicaid. A transfer was done from joint ownership of their home to my father as community spouse. My father is now getting ready to sell his home and move into a retirement community apartment.

Currently, I am listed as a joint owner on his checking and savings accounts. If he puts the house sale proceeds into one of those accounts, what happens after he passes? The accounts have only our two names on them.

From what I understand, my stepmother will be entitled to a spousal elective share of assets if my father were to predecease her even though her name was removed from his will (NY law). This elective share will ultimately be paid back to medicaid for her stay in the nursing home.

So, the question is.........do the net funds from the house sale (around $90,000) become part of my father's whole estate when calculating her elective share, or do the funds become mine since I am joint owner of the account the proceeds will be kept in?

 

[zddoodah]

My stepmother is in a nursing home and is on medicaid. A transfer was done from joint ownership of their home to my father as community spouse.

In what state is the property located? Your post is tagged as relating to New York, but New York is not a community property state. Thus, if the property is in New York, you'll need to explain what it means that "[a] transfer was done from joint ownership . . . to [your] father as community spouse."

Also, how long before your mother began receiving medicaid benefits did this transfer occur?

Currently, I am listed as a joint owner on his checking and savings accounts. If he puts the house sale proceeds into one of those accounts, what happens after he passes?

If you're asking what will happen to the money in those accounts, the answer is that, unless the bank account agreements contain very unusual terms, the money will belong only to you. Keep in mind that your reference to "his . . . accounts" is somewhat incorrect. According to you, they are jointly owned accounts by you and him (i.e., unless you and he have a separate contract that says otherwise, the money in the accounts is as much yours as it is his). Typically, when one owner of a jointly-owned bank account dies, the surviving owner becomes the sole owner.

So, the question is.........do the net funds from the house sale (around $90,000) become part of my father's whole estate when calculating her elective share, or do the funds become mine since I am joint owner of the account the proceeds will be kept in?

The money in the accounts that you and he jointly own will not be part of his probate estate. Accordingly, if you were unwilling to pay over some of that money to your stepmother, she would have to sue you to obtain a share.

Your father's attempt at estate planning is, at best, questionable, and it might be in his and his wife's best interests to consult with a local attorney about whether anything ought to be changed.

 

[Jujubee2222]

In what state is the property located? Your post is tagged as relating to New York, but New York is not a community property state. Thus, if the property is in New York, you'll need to explain what it means that "[a] transfer was done from joint ownership . . . to [your] father as community spouse."

Also, how long before your mother began receiving medicaid benefits did this transfer occur?



If you're asking what will happen to the money in those accounts, the answer is that, unless the bank account agreements contain very unusual terms, the money will belong only to you. Keep in mind that your reference to "his . . . accounts" is somewhat incorrect. According to you, they are jointly owned accounts by you and him (i.e., unless you and he have a separate contract that says otherwise, the money in the accounts is as much yours as it is his). Typically, when one owner of a jointly-owned bank account dies, the surviving owner becomes the sole owner.



The money in the accounts that you and he jointly own will not be part of his probate estate. Accordingly, if you were unwilling to pay over some of that money to your stepmother, she would have to sue you to obtain a share.

Your father's attempt at estate planning is, at best, questionable, and it might be in his and his wife's best interests to consult with a local attorney about whether anything ought to be changed.

In what state is the property located? Your post is tagged as relating to New York, but New York is not a community property state. Thus, if the property is in New York, you'll need to explain what it means that "[a] transfer was done from joint ownership . . . to [your] father as community spouse."

Also, how long before your mother began receiving medicaid benefits did this transfer occur?



If you're asking what will happen to the money in those accounts, the answer is that, unless the bank account agreements contain very unusual terms, the money will belong only to you. Keep in mind that your reference to "his . . . accounts" is somewhat incorrect. According to you, they are jointly owned accounts by you and him (i.e., unless you and he have a separate contract that says otherwise, the money in the accounts is as much yours as it is his). Typically, when one owner of a jointly-owned bank account dies, the surviving owner becomes the sole owner.



The money in the accounts that you and he jointly own will not be part of his probate estate. Accordingly, if you were unwilling to pay over some of that money to your stepmother, she would have to sue you to obtain a share.

Your father's attempt at estate planning is, at best, questionable, and it might be in his and his wife's best interests to consult with a local attorney about whether anything ought to be changed.

Thank you for your reply! To answer your questions:

We have an attorney that is assisting us, but, my question is not one we have discussed with him - as, my father just decided he was going to list the house. The attorney does not know this yet as my father originally said he was going to stay there.

The property is in New York. They jointly owned the property, but, medicaid allows a jointly owned home to be transferred to the spouse not in a nursing home so it is no longer jointly owned.

The checking and savings accounts were his sole accounts - but, his attorney recommended that he add me onto them as joint owner to avoid probate. So, he added me as joint owner but I still call them his accounts out of habit I suppose!

My stepmother has dimentia, which is why she is in the nursing home. I certainly have no problem with sharing funds with her - although, any funds would need to be turned over to medicaid, as she would not be allowed to keep them. She has been on medicaid for one year now.

 

[army judge]

We have an attorney that is assisting us,

Your attorney can ONLY assist you if you stay in touch with her or him.

I suggest you speak ONLY with YOUR attorney about all legal matters.

If too many people participate in a task, the task will not be done well.

Too many cooks spoil the broth meaning = When there are too many people involved in accomplishing (or advising on) the same thing, the final result does not end well.

 

[Jujubee2222]

Your attorney can ONLY assist you if you stay in touch with her or him.

I suggest you speak ONLY with YOUR attorney about all legal matters.

If too many people participate in a task, the task will not be done well.

Too many cooks spoil the broth meaning = When there are too many people involved in accomplishing (or advising on) the same thing, the final result does not end well.

We do speak with OUR attorney as stated above.

Don't really understand your response...............a forum is for asking questions, isn't it?

 

[Zigner]

We do speak with OUR attorney as stated above.

Don't really understand your response...............a forum is for asking questions, isn't it?

Since you say that the attorney is your attorney, that means you are represented. The attorney has FAR more information and insight in to the matter than a bunch of random strangers on an internet forum. Speak to your attorney.