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It gets very complicated when you have a house and need care. The house is an exempt asset with Medicaid but a lien can be placed on your half after your passing. That lien will need to be satisfied if goddaughter ever sells. I personally, would not buy a house with someone if I was over Medicare age and my income was just Social Security and maybe a pension. If she defaults on the mortgage, you will be held responsible for paying it. You could end up losing the house and everything you put into it.

I am 76 and own my home. If something happened to my husband, I would sell and get myself an apartment and use the sale of my house to offset the cost of my apartment. A house is a big purchase at anytime. But I fully believe, that when we retire, we no longer should be paying on a mortgage.
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needtowashhair 2 hours ago
There are pretty easy was to avoid a medicaid asset recovery in many states. Medicaid can only attempt asset recovery for assets that go through probate. So just makes sure you assets don't go through probate. In terms of this half of a house, you can put it in a trust or do a TOD. A TOD would be easiest and there is no look back period.
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Don't do that. Love her enough to not do that to her.
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Cautionary true tale: Mom's friend "Estie" used her husband's life insurance to build a mother-in-law apartment onto the house owned by her son and his wife. She was to look after the kids when they came home from school, babysit when the parents went out at night, and work in the yard. Son was pastor of a church. After a few years of her free labor, the bank repossessed their house. She didn't know they hadn't been paying the mortgage payments! Her home was part of the larger house and she lost it. Don't do this with your goddaughter. Anyway, why would she want to take care of you as your health worsens in old age? That gets tiresome very fast no matter how much you think she loves you.

It's not a good idea for either of you. Find a continuum of care retirement village where you can put your money into a nice villa or apartment and be assured that when you need care, it will be right there.
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Reply to Fawnby
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I’m a strong believer that you only own a house with a spouse or alone by yourself. It’s too big a commitment with potential complications to buy with anyone else .
My nephew has a mortgage on his house. His mother lives with him and she pays him rent.
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Reply to waytomisery
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She wouldn't lose her half, but after you pass away she would need to pay off the lien Medicaid would place on your portion of your house, which means she would have to sell the house if she couldn't afford to pay back your half. She would keep her portion of the sale proceeds, but she wouldn't be able to control the timing of the sale, so it may not be at the best timing to get the best price.

There are many other risks to buying a home with someone other than a spouse.
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Reply to MG8522
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This is a complicated question that relies on state law about land as well as health care, and a lot of money is at stake. You need a local lawyer.
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Reply to MargaretMcKen
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thehobo67, welcome to the forum. Can you clarify, do you wish to add her name to the Deed of your house? Or is this a house that your God-daughter is purchasing? Would you qualify for the mortgage on your own? Or she qualify on her own? Or are you putting down a large down payment for her?


Will the expense of this house (real estate tax, utilities, homeowners insurance, etc) be half and half? Or will the God-daughter pay for all the expenses, and you be a silent co-owner? If she needs to fix something major in the house, will she expect you to pay half of the repair? Could you afford to help in the repair plus maintain your own home?


As you can see above, it can get complicated, and it could become a focal point later on. My hubby is a co-owner of his daughter's house, and when she married her new hubby did a lot of remodeling on his own. Now her hubby wants to be reimbursed for the expenses, and it has turned into a nightmare. So, I would be very careful about co-signing on a house with any one other than your spouse.
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Reply to freqflyer
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You may be harming your future self if you need Medicaid or go into a Nursing Home in the near future. Especially if you're not living in the home. What if she files bankruptcy? What if she gets married? What if a boyfriend moves in? What if she decides to move? Too many what if's. It's time to see an Attorney.

And if she can't afford it on her own, why does she need that particular piece of property? She can't afford it, apparently.
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Reply to QuiltedBear
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What's the relationship here? What's the goal? Do you want your goddaughter to be the owner of the house in the end? If so, do joint tenancy. Not tenancy in common. The big difference is when one party dies, with joint tenancy the surviving party becomes the sole owner. She not only would she not lose her half, the state couldn't take you half if you end up in a nursing home. When the time comes, your half would go to her.

That's how it works in my state. You should check the laws in your state. You can also do the equivalent with tenancy in common and estate planning. Put your half in an trust. When you pass, that will get distributed as per the trust. In my state, medicaid could make no claim. Since medicaid can only make claims against assets in probate. If it doesn't go through probate, medicaid can't claim it.

Which brings up do you have beneficiaries set in your accounts. You really should. To avoid probate.
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Reply to needtowashhair
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I hit the wrong button. I meant to reply to another post. Please delete.
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