Mom deeded homestead to son 14 years ago, reserving a life estate. Mom is 75 years old. Son is 45 years old. Both in good health, live at the homestead, and likely will for the foreseeable future. Son is on social security, including some amount of SSI, and is on medical assistance. I do not know the amount of SSDI, and the amount of SSI.
The house is worth between $50,000 to $60,000, EMV is about $54,000.
If something happened to mom, son would not have sufficient income to stay in the home, paying insurance, taxes, utilities, etc. She is helping him now. My understanding is he will likely need an apartment.
1. Son could transfer the remainder interest to his 3 siblings. As the son is under 55 years of age, that should not affect medical assistance. HOWEVER, he would be subject to a 36 month penalty for any SSI benefit he gets. Maybe siblings could provide him with payment of some expenses he now pays to make up the loss.
2. Son could sell his life estate, roughly 50% of the value based on MN life estate tables. Use the monies for prepaid funeral, perhaps better vehicle, household furniture. Could also set up special needs trust, but may not be wise for only $25,000 as a round number.