Debt to a Trust & Nursing Home Fees

[DavidHC]

It is my understanding, for inheritance tax purposes, that a main residence owned by a couple as tennts in common, may on the first death be occupied by the widow/er in exchange for a debt to a trust for half of the property value. In this situation, where sale proceeds are later necessary for long term care, can the trust legitimately cliam their debt before the proceeds are used for the nursing home?

[Peter D]

Yes that is correct. The paper trial must be clear but the debt should be deducted from the sale price of the house. Regards Peter

[Lee Young]

If the debt is structured, as it often will be, as an equitable cgarge against the title, then it MUST be paid off when the house is sold.