Family farm

[abbey]

My state is Texas. My husband and I would like to buy my mother's portion (about 10 acres) of what remains of the family farm (and also my sisters' portions which total about 6 acres). It would remain agricultural in use after we buy it. Mom is already in a nursing home. My question is, how "cheap" are we legally allowed to purchase Mother's land for?

 

[seniorjudge]

My state is Texas. My husband and I would like to buy my mother's portion (about 10 acres) of what remains of the family farm (and also my sisters' portions which total about 6 acres). It would remain agricultural in use after we buy it. Mom is already in a nursing home. My question is, how "cheap" are we legally allowed to purchase Mother's land for?

You can have ma give it to you if you want. That's as cheap as it gets.

But check with a tax CPA before you start doing any of this stuff....

 

[abbey]

One detail I should have mentioned is that we are in the process of applying for medicaid as Mom's cash runs out in a couple months. My sister is handling the application and we're wondering if Medicaid coverage will be denied because of the land, or if they will put a lien on the land.

 

[seniorjudge]

One detail I should have mentioned is that we are in the process of applying for medicaid as Mom's cash runs out in a couple months. My sister is handling the application and we're wondering if Medicaid coverage will be denied because of the land, or if they will put a lien on the land.

There is a possibility of both happening.

 

[abbey]

So this is why we want to purchase the land and not worry about any of that any longer. The tax-appraised value is $15,000 per acre (that may become $10,000 according to land use change), but will the law let us buy it for say, $5,000 or maybe $8,000 per acre? Or because it's a family member purchasing, will we have to pay market value?

 

[seniorjudge]

So this is why we want to purchase the land and not worry about any of that any longer. The tax-appraised value is $15,000 per acre (that may become $10,000 according to land use change), but will the law let us buy it for say, $5,000 or maybe $8,000 per acre? Or because it's a family member purchasing, will we have to pay market value?

The tax appraised value is just that: for taxes only.

You need a real-estate appraisal.

You can buy it for any amount you want.

The government will base ma's assets on what the market value is, not the purchase price.

If the fair market value is $100K and you buy it for $100K, ma is said to have $100K in assets.

If you buy it for $5K, ma is said to have $100K in assets.

 

[abbey]

Thank you, seniorjudge, for all your replies and good information.

 

[seniorjudge]

Thank you, seniorjudge, for all your replies and good information.

You are welcome....

 

[abbey]

will the gov't look at the market value at the time of sale to us, at the time of Mom's death, or when?

 

[seniorjudge]

will the gov't look at the market value at the time of sale to us, at the time of Mom's death, or when?

At the time it is sold....

 

[abbey]

where can i go to find out how the gov't will determine the market value of Mom's land at time of sale to us? i.e. who shall i contact to get the market value now? a gov't website about Medicaid, a local realtor specializing in agricultural land, ..???