ICLE Course Outline: Handling the House and Family caregiving Arrangements
by James P. Lampertius
More persons who are elderly or adults with a disability are choosing to live under one
roof with family members. The residence is often a main asset for clients and directly
related to their emotional security. Public benefits under Medicaid, SSI and the Veterans
Administration prioritize and even reward remaining at home with family care
arrangements.
As such, attorneys increasingly face requests to handle the house and family caregiving
as part of the estate planning process. The desire to avoid probate, to protect the home
against loss and to alleviate overall costs to the family make “simple” deed transactions
quite common. Life estate deeds, deeds to a trust or joint ownership arrangements may
seem a simple solution. These “simple”requests, however, often have significant legal,
tax and Medicaid effects which are not contemplated.
In fact, family caregiving relationships often exact a significant emotional, physical and
financial toll on the caregiver and other relationships. Accountability, access, safety and
respite are difficult to clarify in the home setting. Concerns of undue influence,
inappropriate control, earned income and gifting penalties have caused increased scrutiny
with the probate court, Medicaid and the IRS.
Estate planning attorneys serve their best role in anticipating these “red flags” before they
become problematic. At the same time, we are able to honor family preferences and
strengthen the financial security of the client. This seminar is broken into four major
steps to tailor the most effective legal framework for handling the house and family
caregivers.
