Inheritance

if medicaid pays their nursing home, the home as property could be seized and sold to help pay those bills. it's being implemented in several states (like oregon) and it's a great idea as a source of funding for medicaid as it's not supposed to work as a subsidy to inheritances and it's in dire straights.

I may be but depending on how much their property and total estate is worth, you may do better off leaving the property in their names. As their heir, you can move in (assuming you can pass the board if they own a coop) or the property can be sold by the estate without capital gains liability. I don't know at what point estate taxes become an issue though.
With a trust, the property automatically passes to you upon their death and thus I think would have to pay capital gains if you sold.
Trust does help shield from Medicaid at least it did a bunch of years ago, things may have changed. I'm not sure if both spouses are still alive and residing in the property it can be seized or otherwise counted as an asset for Medicaid determination if only one needs nursing home care.

See an elder care attorney. Its the best thing.

A trust is the only way to protect their assets and it must be set up sooner than later. My family went through this with my Grandparents, my Grandfather though is very old school and there was no way he was turning over his house/savings to a trustee. The wealthy seem to know how to protect their money for family, my Grandfather became wealthy but started out on the docks in Hoboken. He's 99 and still going strong, but he just could not grasp the idea of a trust. At a certain age they don't allow you to create a trust any longer.

"At a certain age they don't allow you to create a trust any longer."

so true! the old get more and more paranoid as they age.

Thanks for the comments thus far, folks. I knew I was probably forgetting some details, so hopefully this would provide greater clarification. My parents are still living together in the same apartment, which is a co-op. It's the same place where I grew up since I was 9 years old, before I went off to college. Parents are still healthy and swear that they will live in the same apt for many years to come.
We just want to get some of these administrative issues squared off, so that in the case that one/both passes away one day, that I would assume control of the apartment without any huge implications. Just want to know what the best route would be... since I originally thought that adding my name to the title would be easiest (which turns out to be one of the worst ideas). Any suggestions? Trust? Will? Leave the situation status quo (with only both their names) and hope that my many years of previously living there and being their child would be enough justification later on?

What Liz said, find a good elder care attorney. You don't want to wind up taking advice from someone with "comm" in s/he's handle...(;

> hope that my many years of previously living there and being their child would be enough justification later on?

you are doubting that the asset will end up being yours? or you want to do best planning in terms of having the nursing home bills paid by medicaid instead than by their assets?

be very careful with changes made to medicaid, googled a little bit and found this:

"Deficit Reduction Act of 2005 enacted Feb. 8, 2006, created major changes in the Medicaid Transfer of Asset rules: (1) created a five year look back; (2) calculate a penalty or waiting period from when a person is receiving institutional care and would be otherwise eligible; (3) created limits on home equity; and (4) required the state be a beneficiary on annuities. "

Just a follow-up, parents and I spoke to a lawyer today. Sounds like a simple Will should be sufficient (granted the estate isn't over $1 million) in the event both passes away.

Sure a will is fine, but if they end up in a nursing home the state will/can seize everything. Also without a Trust the clawback is a bitch. If you are trying to protect assets then you need better advice than a will.

Check the option of transfering the interest at the co-op from your parents to you. I heve read serveral tyimes that being from parents to son/daughter, there are no tax implications.- The property will remain in your name, your parents will live there, no taxes would be affecting the transaction and -hopefully- longer will be the period before someone will have to pay for the owner(s) estate taxes.Hope it helps...

Talk to a Trust & Estates lawyer. There are ABSOLUTELY gift tax and estate tax implications when there is a transfer between parent & child.

If you get added to the certificate, you will probably have to submit a board package and interview etc just like any new owner. If the coop has a flip tax and your parents transfer ownership to a trust, they may have to pay the flip. (If you inherit, you probably won't.) Read the offering plan and house rules.