I have a client who was advised by his attorney to put his children on the deed to his home with him having life use.  This is common here in NY State to prevent Medicaid from selling his home if he has to go in a nursing home in the future.  I have told my client if the home is sold while he is alive, they, the children, are part of the sale and have a tax responsibility.  Their attorney told them it is implied they will get FMV at the time of sale as FMV was "implied".

Has anybody had a similar case?

B. Tehan