Jk or anyone who knows the answer to my questions,
1)My mom has changed her mind and decided that she wants to remain a 1/5 owner on the property. She said it will make it easier as far as paying the taxes as she wants to keep her tax deduction and she is going to apply for the senior tax exemption as well. She said it would make paying the insurance easier as well as insurance companies like to know that the insured lives in the home.
2)I think you said that the 4 kids could have a tenancy in common with each other and a joint tenancy with mom. Are you certain of this? I cannot find anywhere on the internet that this is an option.
3)If it is not possible and we are all tenants in common (that is the way the lawyer was going to draw up the new deed) and my mom holds the 1/5 share, will that 1/5 be subject to probate. We certainly do not want to have to go through probate as everything becomes a public record, it is costly and can hold the house hostage for a very long time. Is there a way for my mom to keep her 1/5 share and avoid probate? I know a trust will avoid probate but I would like to know if she could word the will in such a way that the property automatically passes to the kids without having to go through probate and still have a tenancy in common.
4)If the house must go through probate, will the cost for her 1/5 share be lower or about the same as the cost for the entire house to go through the process?
5)We are also concerned about Medicaid taking that portion of the house and I don't believe a life estate for her versus owing 1/5 will solve the problem. In fact, I think the value of a life estate is higher than the value of her 1/5 share, something like 44%.
6)Maybe we can do a tenancy in common with mom and have her only own 1% of the home rather then 1/5, that way Medicaid can only take 1% and she is still considered an owner and can pay the taxes and insurance. What do you think?
Thanks again for you help!