What other problems could happen if I give my property to my kids?
Everyone assumes that their children will outlive them. But what happens if one of your children dies first? Your property will likely be tied up in probate court and distributed according to that child’s Will. If your child does not have a Will, state law will control the distribution. In either case this may result in the wrong people getting your property. If transferring title of your house was your attempt to preserve the value for your family, your planning goal has failed.
If the gifting of your house is an important option for you to consider, it is critical that it be done correctly. If you do it at the wrong time or under the wrong circumstances, you will be creating more problems than you are solving. Rather than just giving your house away to avoid nursing home costs, a possible solution is to place it in a Medicaid trust.