My 84 year old Mom has refused to draw up her legal paperwork in the past but I am finally convincing her. I am looking for an affordable way of doing it since I am paying for it. My Mom has no money and is in stout $15 g in debt. I am trying to avoid probate and need the financial POA in case I need to place her. Thanks in advance.
I'm also emphasizing what others have written, especially Alva's comments on Medicaid, for which if needed may rely on the house as a recoverable asset.
Let me just address this: "She does own her condo which I was hoping on gifting it to my brother who lives with her and has kept her out of a nursing home. "
I assume you're aware that whatever you hope or want is not relevant. (I'm not being snide or cruel, just realistic.) It's your mother's choice. I think it's very thoughtful of you to want your brother to have the house, eventually, for his caregiving services, but it really is your decision. Nor should you push her on this issue as it could be construed as undue influence.
Beyond that, you can't gift it unless it's first conveyed to you by your mother. I do understand that you're planning ahead and probably thinking of solutions, as apparently it's challenging for her to face this.
In order to enable your brother to get the house (Medicaid being set aside at this point), the title would ideally be changed from your mother as sole owner to your mother as joint owner with your brother, and "rights of survivorship" added to the title. Title would pass directly to him on her death, the house wouldn't have to be probated, and you probably wouldn't be harassed by the bloodhounds who scour probate files then pester the Personal Representatives to sell a house, or in some other way get involved.
HOWEVER, I DO NOT KNOW if this was changed during the last tax law; it's a complex law, and I just don't know if it addresses something like joint ownership and inheritance. It's hard enough to wade through the trust and estate guidelines. This definitely is an issue for an attorney well versed in that tangled mess of legislation.
If it were possible, it's the easiest way to transfer property on death.
However #2, what's the status of the $15K in debt? Has any of it been written off? If Mom's still at home, are the creditors hounding her? Any suits been started? If the creditors are still harassing her, and haven't yet filed suit, that's another issue. If any were to sue and get judgments, they would be priority liens that have to be satisfied before your brother could inherit with clear title.
That raises another issue: is the property subject to any mortgage? If so, brother would also have to address that, TRY to assume the mortgage (which isn't always possible as some lenders are strict about this) and continue to pay down the mortgage as well as pay property taxes. Is he in a financial position to do so?
A bankruptcy attorney might be an appropriate person to consult, to determine whether or not Mom could shed those debts. I would imagine they're pretty busy right now though; there are millions of folks in dire financial straits.
What you can do is exploit the willingness of attorneys to give advice, just to help you sort out the legalities. Senior Centers (prior to the pandemic) used to invite attorneys for free, quick consults. You could at least get some direction from them, and possibly find someone who can offer a good rate.
Katie, in many ways I hate to warn you of these issues because you sound like a good daughter, thoughtful and considerate of your mother and brother. But legal issues are like land mines, and need to be addressed before they explode.
Take some time, think over the situation, and consider exploiting what some elder law attorneys used to offer: free initial consultations. If the pandemic weren't dominant, there would be free elder seminars, at which attorneys typically give out chits for free consultations.