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How to protect our house from piling-up medical bills?
Anonymous3 views4 answers
We have a house (bought at $150,000, still has $70,000 loan) under my mother (now 60 yrs old, widowed, never worked, no insurance coverage) and my brother's (now 35, single dad with a son, employed) names and they live together. My mother's health condition is not so good these years. The house still has a loan of $70,000 under my mother's name, but my brother has been paying for it for years. If my mother's medical bills piles up, will they lose the house to the hospital or collection agencies? Is there anything can be done to protect such happening? Thank you so much.
Robert A. StumpfBankruptcy AttorneyStaten Island, NY ·
That's a possibility, yes. There are options available to you, but I would consult with an Elder Law attorney in your area for some appropriate planning.
In every state, certain assets are protected from the claims of unsecured creditors, such as medical care providers. The nature and extent of the exemption rights vary greatly from state to state. In California the homestead exemption is a "multiple choice" matter, but it appears the house you have described would be protected on more than one grounds. For the security of knowing for sure, consult with an experienced bankruptcy attorney. Although bankruptcy is not at all part of your concern, a bankruptcy attorney has the expertise you need.
Best wishes for a favorable outcome, and please remember to designate a best answer.
The most important, simplest thing to file if a Declaration of Homestead on the property which will protect Every homeowner has an automatic Homestead exemption of at least $50,000 for their residence. In California, this protection is automatic and does not require the signing
or filing of any kind of documents. The amount of the exemption increases to $75,000 if at least one member of the family unit living in the house owns no interest in the house, for example, when a homeowner lives with their minor children. The exemption rises to $150,000 when a
homeowner is 65 years or older, or is physically or mentally disabled. The $150,000 exemption also applies to persons 55 years of age and older if that person is: single and has a gross annual income of $15,000 or less, or married and have a combined annual income of $20,000 or less, and the property sale is involuntary.
A Declaration of Homestead can be obtained at no charge from any title insurance company doing business in California at no charge. It needs to be filled out and notarized and filedwith the County Recorder where the property is located.
Michael Raymond DaymudeLitigation LawyerSherman Oaks, CA ·
I would make an appointment with an Elder law attorney for your mother.
If I read your post correctly, you are concerned your mother's medical bills -- because she has no insurance -- may cause her to lose her home or any equity in it when she dies. I think that might be the least of your concerns.
One concern I have is that your mother is obligated on the loan but title is in both your mother's and your brother's names. Certain types of transfers of property can make your mother ineligible for Medi-Cal. Since your mother does not have insurance you want to make certain she qualifies for Medi-Cal.
Get your mother to an Elder law attorney so that you do not make any mistakes along the way, in terms of transfers of property, which may disqualify your mom for Medi-Cal.
