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Are there special Medicaid rules dealing with the purchase of a life estate in the residence of another?

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Are there special Medicaid rules dealing with the purchase of a life estate in the residence of another?

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Yes. To avoid having a period of ineligibility imposed for the purchase of a life estate in the residence of another, the purchaser must reside in the residence for at least a continuous period of one year after the purchase is made. Does this preclude a purchaser from having a second home? I think a second home is permissible provided that most of the living time is spent in the residence in which the owner has a life estate. In addition, many homes of children are encumbered by mortgages. Does such a sale violate the due on transfer clause of the mortgages today? One might look at the provisions of 12 USC 1701 j-3. That statute contains certain exceptions to the due on sale provisions and would prevent the use of a due on sale clause in connection with a transfer of a life estate from a parent to a child or vice versa. So, on that level, the due on sale clause should not be an issue. What are the Income Tax Consequences for the Child Who Sells a Life Estate to a Parent? It would seem

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