My mother-in-law (90) lives in her small house. She has a will naming her two children. I suggested the idea of putting beneficiaries on the house (her only asset) to avoid probate. She agreed. I downloaded the Ohio RC 5302.22 "Transfer on death designation affidavit" from the county website. Has anyone done this? I have also urged a POA and a change of executors (her lawyer is in jail). We provide all the services of assisted living. Down the road may be a nursing home (Medicaid?) They will probably take the house. But if there is no Medicaid nursing home, does the house beneficiary work as described? Has anyone else done this?
At 90 well the likelihood is that she is going to need a higher level of care than you can provide and need this within the next 5 years. Unless she is the rare, no chronic health conditions type who had her parents themselves live to mid 90's! It sounds like you are already providing "all the services of assisted living". Caregiver burn out is very real. Then it's Hello Medicaid NH! If so, you just want to have a plan on how to deal with her, her needs and her assets and not be all be doing all in panicked rush. Good luck.
I notice some people prefer to deed the house over to a grown child(ren). One draw back is that if you get the house then the capital gains taxes, when you sell the house, the bases used would be the cost of the house when one's parents bought the house.
If you inherit the house through a Will, then the bases used for capital gains taxes, when you sell the house, is the general market value of the house on the day you inherited the house.
If Mom finds herself in a nursing home and Medicaid is paying for her care, Medicaid will put a lien on the house with the transfer of names on the deed were with a 5 year look back [some States have along look back] and Medicaid will be first in line to collect money for your Mom's care once she passes. If Mom lives for many more years in a nursing home, someone would need to pay the property taxes, utilities, homeowner's insurance [if you can find an insurance carrier who insures vacant houses].
I know, this all can become so complicated.
Basically...the only ways to avoid probate is...1) give it away before you die. 2) have the specific designation "Right of Survivorship" on the title (account or whatever). In some states this is only allowed between husband and wife. In some states it is just real estate that can be restricted...some it includes bank accounts.
I suggest you pick up the book from NOLO press...how to avoid probate...then do a look up of your state laws. OR, get an attorney the specializes in elder law/ medicaid/probate and wills.
It took a good long while to get this set up between my parents, the result was that when Dad died...everything moved to Mom without probate. Quick and smooth transition. Now, I had an attorney help me get it all set up once again between Mom and me. When the time comes I will divide according to Mom's will...but, I will have it all move to me without probate first.
In Colorado, if the total estate is below $60,000 you can avoid probate with a "quick" file. Otherwise lawyers and courts will take a cut if you end up in their hands. The size of the cut gets bigger with the size of the estate.