<p>Erin's Dad suggested I post my issue here where I might get better advice. In a nut shell here is my issue Parent is me and my father is grandparent:</p>
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<li>Parent buys remainder interest in Grandfathers property - GF retaining life estate.</li>
<li>Parent moves family to Grandparents home to provide care.</li>
<li>Parent takes mortgage on GF's home to make improvements.</li>
<li>Parent maintains own home until grandparent passes.</li>
<li>Grandparent becomes ill and moves to a nursing home.</li>
<li>Parent has own children attending college and needs to do a fafsa.</li>
</ol>
<p>Our school financial aid form has a place for home value, purchase price and mortgage owed.</p>
<p>I have the remainder interest mortgage, the improvement mortgage and the mortgage on my orginal home.</p>
<p>If the parent has bought the remaining interest, the PARENT now owns the property…not the grandfather. On another thread you said you did this to avoid losing the house to medicaid for costs…you can’t have it both ways…either you OWN the house or you don’t. If you bought it, you own it.</p>
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Then I think this house has become your primary residence…you live there.</p>
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<p>You bought it…it’s not the GF’s house anymore.</p>
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If this is your second piece of real estate (not your primary residence) you must list its equity on the FAFSA and Profile forms.</p>
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<p>This has nothing to do with the house.</p>
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<p>It sounds to me like you have purchased GF’s house…that is what you have said. You did this so GFs house would not be taken by Medicaid for his costs. You have moved IN to that house thus making it your primary residence. At least that is how I’m reading this sequence. Your OTHER home would be listed as an asset on the FAFSA. The equity in both will be listed on the Profile if you have to complete that.</p>
<p>You can’t have it both ways for this home ownership. It’s sounding like you do NOT want to own it for FAFSA purposes when completing the FAFSA but you also do NOT want to own it for Medicaid purposes. You can’t have it both ways.</p>
<p>Sorry, I believe you are dead wrong. I did not buy the house. Do you understand what a remainderman is? It is a legal term. It is not a remaining interest whatever that may be. And yes, we can have it both ways because that is exactly what life estate does to a property. When you make these statements do you really understand life estates? I agree that the house has become my primary residence but legally we are living in my fathers (the grandfathers) home as a guest (rent free). </p>
<p>Making the statement you do, do you base them on legal knowledge in the state you reside or just opinion?</p>
<p>I will watch this board for more posts but the people I really want to hear from are the ones having experience with this situation. Possibly FA professionals at schools. I plan to make an appointment with my attorney to get a few things clearified.</p>
<p>Thanks for your opinions, but it just goes to show how confusing Life Estates really are…</p>
<p>I just googled ‘remainder interest’ to be sure I was talking correctly. Specifically, remainder interest is a FUTURE interest in something (the family home). I do not own the property NOW my father does, he cannot sell it however as it is promised to me. So I really want to hear from someone who knows how colleges view this situation.</p>
<p>If you do not own your dad’s house…then here is my opinion…</p>
<p>You are living there. Therefore, I believe this is your primary residence. It doesn’t matter if you are paying rent or not…it’s where you are residing. If that is the case, then your other home would be listed as other real estate and would be an asset for FAFSA purposes (equity only).</p>