The Jackson White intake team recently fielded a call from a son whose father is in need of ALTCS services. The son stated that he is in the process of “assuming” dad’s mortgage. The home has about a $100,000 mortgage and the estimated Fair Market Value of the home is $240,000.
Question: Will assuming my dad’s mortgage pose a potential problem with ALTCS eligibility?
Answer: YES! ALTCS will see this as a transfer of the difference, or $140,000.
Therefore, dad is ineligible due to the assumption of the loan. They see this transaction as dad essentially giving away $140,000. In doing something that they thought was right for dad, it is now clear that they have actually caused major issues with eligibility and potentially some very severe penalties.
If you are getting ready to apply for ALTCS for yourself or someone else, please call for a free benefits pre-screen. We can help you determine if there are any red flags before you start.