My mother-in-law passed away, unexpectedly, a few months ago. My wife's Grandma mentioned to my wife that she wants to give her (us) her property. My wife told me and we verified with Grandma that she is indeed serious. Only recently, did I get an 80% teleworking position that would allow me to move 4 hrs away from where I live now.
My wife's Grandma and Grandpa own the house with no mortgage, while my wife and I (4 kids) are 5 years into a 30 year mortgage. It's a no brainer to accept this gift right?
Twists: Grandpa has the early stages of short term memory loss. He often forgets decisions he made earlier in the same day. Grandma wants to move closer to her sisters and he will agree and then disagree in the same day. She hasn't brought up giving us the house to him yet. He wouldn't object to us but may object to leaving his property for any reason.
ASSUMING HE AGREES
Questions: To avoid unnecessary taxes, would the following be the best course of action? If not, what is the better alternative?
Grandpa gifts his half of the property to Grandma. Based on internet sleuthing, that is acceptable to Medicaid should he need it in 5 years. Grandma (younger and in perfect health) could then gift it to my wife while acknowledging the 5 year lookback of medicaid should she need it that soon. She uses her estate/gift lifetime tax exemption (house is worth a Max of $320,000) and we live there minimum two years before we sell (not planning to sell but plans change) and use our combined capital gains tax exemption to avoid taxes when selling.
Am I on the right track? Would inheriting the property upon death (screwing grandma on ever using Medicaid) or quitclaim deed, or put wife on deed with right-of-survivorship, etc be better?
All legal information data-mined via Google
This wouldn't happen for minimum 1 year so I'm just beginning to prepare
Submitted September 21, 2019 at 06:55PM by loyaluntodeath https://ift.tt/2IgtLd1
