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Forum Newbie
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Last Login: 9/1/2008 7:02:34 PM
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person dies in 8/07, trustee places home for sale in 1/08. escrow closed 4/08. there was a medi-cal claim
submitted shortly after death notification and a agreement that a lien would be waived since the home was
in escrow. the proceeds from the sale were deposited into a trust acct. There was a capital gains from 8/07 to close of escrow 4/08. the trust account paid the medi-cal claim from proceeds of the sale.
question:can the medi-cal claim be a deduction against the capital gains, since it was a lien against property deeded to the trust?
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| Jim, No. You can deduct costs of sale in determing capital gain, but not claims against property.
Harry S. Margolis
ElderLawAnswers
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Last Login: 9/20/2008 4:31:30 AM
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jim (9/1/2008)
person dies in 8/07, trustee places home for sale in 1/08. escrow closed 4/08. there was a medi-cal claim
submitted shortly after death notification and a agreement that a lien would be waived since the home was
in escrow. the proceeds from the sale were deposited into a trust acct. There was a capital gains from 8/07 to close of escrow 4/08. the trust account paid the medi-cal claim from proceeds of the sale.
question:can the medi-cal claim be a deduction against the capital gains, since it was a lien against property deeded to the trust?How unfortunate that legal work was done to protect the house at death by an attorney, but not from Medi-Cal recovery. Was this a conservatorship or a court-ordered trust?
Mark John Crews
Strategic C.A.R.E. Planning(C)
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| Mark, it would be nice if you could explain the legal steps that were required or recommended instead of the answer that you gave.
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Junior Member
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| well charles, in CA (medi-cal) we can give the home away without a penalty. has to do w/ question 52 on the medi-cal app. Intent to return home. If you check yes, then the home should be removed from the estate of the medi-cal beneficiary. for the last several years, IDGT have been an effective tool. That was why I asked how the trust had been formed. in my experience, court monitored trusts arent allowed to apply for benefits if there are assets. nor do they allow retitling assets to protect them.
Mark John Crews
Strategic C.A.R.E. Planning(C)
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Hello every one!Good happiness and have a good day to you.I'm new member in here.Hope I can learn more from this forums :-D
lovely woman
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