My parents own two additional properties other than the primary residence. One is just grass and a one car garage. The other contains a two car garage and a house (in poor condition) in which my sister lives. My sister pays $400 dollars rent per month. The bills are paid out of that $400. Depending on the bills that month, my parents may have less than $100 dollars left over. My mother is sorely in need of long term nursing home care and I’m very concerned that this will ruin her chances has anyone else had this problem? How big of an issue was it?
An appraisal can get house Value down. But land value is hard to get reduced in my experience
The 2 other properties are non-exempt assets and will need to be sold will be likely Medicaids position.
The situation you find find yourself in.... their property is kinda a POS and not worth much is pretty common. Often home has years if not decades of delayed maintenance. Often property values go up, but cause it’s owner over 65 the property taxes are fixed and low. So they never seek an assessment hearing to have value actually representative of true value. Assessor value goes by comperables sold, so if there’s lots of Reno’s or teardowns with new rebuilds, your folks property and land could be way way over valued.
Medicaid is gonna want it sold at FMV ( fair market value) which will be the last tax assessor value. If it’s way inaccurate, you’re going to need to get property appraised by a licensed appraiser. Personally I’d get it inspected (again by a licensed inspector) first and then give the inspection report to the appraiser and let them do their job. If it comes in way way less than assessor value, Medicaid should be ok with this. The appraisal is a legal document. Often Medicaid will allow your mom to be “Medicaid Pending” in her application IF the 2 nonhomestead properties are up for sale with a mLS listing with a Realtor. No FSBO nonsense.
BUT I’m thinking that maybe the land, it’s totally adjacent to thier home right? that maybe you might be able to get it “companionized” or get a “vacation” on the title to have it all as 1 parcel (or PPIN) for taxes. Actually this might be easily done by you if you have DPOA. Here’s my suggestion, find the last 2 tax bills on house and grass lot next door. Go to courthouse (around 10 AM as courts in session and CH staff have time for the clueless till the attys break midday) and ask where you go to get a copy of the “plats”. Take cash, maybe abt $10 each. Get 2 sets. Go to tax assessors office (assessor NOT collectors) and say you want to have the two combined for single tax property. Stress it’s just a yard with no house. Maybe take photos of it and bring with you. I bet there’s a form to fill out and attach the plats & photos to and get notarized. So you need to bring your dpoa paperwork & ID. The form will probably be a docket request for chancery court judge to review and approve them to be companionized (joined) or vacation (title is vacated or struck) or rejected. You get a notice of hearing date and show up with a neighbor or two who support this being done. I bet judge allows it. It’s not like you putting in a firecracker factory. So then all you have to do is deal with selling the rental property.
I bet you can convince dad to be ok to do a compromise like this... he gets his now bigger piece to keep but crappy house gets sold. Tell him the rental $ medicaid will require to be paid to the NH, so that might motivate him to let it go. & Sissy to move to her own place.
good luck.
Don't mind those claw marks on my brain . . . it's just my sanity trying to hang on.
I would think that it would affect them greatly.
Think of it as someone you do not know.
1: How many property's do they own? ANSWER: 3
2: What are they worth totally (WHEN SOLD).
There, I think, would be your answer.
If, as you say, the house is in bad condition, they could be sold for the value of the land. Rental on the garages?
Good luck