Real Estate Law - Life Tenant vs Remainderman

[weirdalfan]

Our family is going through a situation I'm hoping someone can provide an answer on. In 1980 my grandmother changed the deed on her property (long ago paid for - no mortgage) so that she is listed as "Life Tenant for the term of her natural life" and my mother is the "remainderman". Well, it's now 25 years later and my grandmother who's 94 can no longer care for herself, so she's been put into an assisted living home.

We're concerned the Commonwealth of PA will now seize the property to pay for her care and there's nothing we can do about it. (She's in a state-run facility and our family is in no financial position to pay for her care.) Is that the case? My mother transferred her home and this property to me (gram signed off on her "life clause") so they could both be sold in the spring and she wouldn't be subject to the income, so both properties are solely in my name at the present - since the end of Sept '05, but I'm told
the state will go back 3 years.

I'm talking w/a representative from the home she's in tomorrow morning, but I thought I would try to get an idea of what we're facing so perhaps I can get some sleep tonight. The lawyer who drew up the paperwork is now a local judge (and family relative) and he insists the property is my mother's and there's nothing to worry about. The taxes started coming in my mother's name after this paperwork was done if that makes any difference.

Thank you for taking the time to read my question.

[Mr. Knowitall]

A life estate typically is alienable, meaning it has a (theoretical) market value; I'm not sure how much value your grandmother's life estate would have on the market. I doubt that it will be much of an issue. The underlying transaction occurred long enough ago, creating your mother's remainder interest, that I doubt it would be subject to attack.