Homeownership Issues for Seniors: What Should I Know and What Can I Do?

Homeownership Issues for Seniors

Someone came to my door and offered to put new windows on my home. They wouldn't leave until I signed a contract. I don't really want to have this work done by this company. Is there anything I can do?

In New York State, there are special protections for door-to-door sales. You have the right to cancel a door-to-door sale until midnight of the third business day after you signed the agreement. This means you have a few days to reconsider and cancel the contract. To cancel, you must provide written notice to the seller, and mailing the notice counts as giving it. The seller is required to give you notice of this right to cancel, and the time limit starts when they provide proper notice. Make sure to review the refund policy as well.

 

I signed a contract to have my driveway re-paved, but I'm unhappy with the work. Some parts were left incomplete, and the rest was poorly done. What can I do?

You have the right to let the contractor know about your dissatisfaction and request that they either complete the work to your satisfaction or reimburse you. It's important to communicate your concerns in writing and keep a copy for yourself. If the contractor refuses to address the issues, you can file a lawsuit against them for failing to fulfill their obligations under the contract. Lawsuits must be initiated within six years of the contract's breach. Depending on the amount you are seeking, you may consider small claims court, which handles cases with damages of $3,000 or less. You can also contact the New York State Attorney General's Consumer Hotline at 1-800-771-7755 to file a complaint.

 

I want to have my roof fixed, but the contractor won't provide a written contract. Is this a good idea?

It is not advisable to proceed without a written contract. Without a contract, you won't have a record of the specific work agreed upon, making it difficult to prove if the contractor fails to complete the work to your satisfaction. A written contract should clearly outline the work to be done, including specifications such as materials and timelines. It's essential to fully read and understand the contract before signing. If needed, seek assistance from a lawyer or a trusted family member to review the contract with you. Remember to always ask questions and never sign a contract you don't understand. Additionally, ensure you receive a receipt for any payments made to have proof of fulfilling your obligations under the contract.

 

One of my neighbor's trees is causing issues by dropping leaves and branches on my property. Another tree appears to be dead and leaning over my fence. What can I do?

It is recommended to discuss the situation with your neighbors to reach an agreement. Homeowners can generally trim overhanging tree branches that extend onto their property, as long as it doesn't harm the main tree. However, you should not trespass onto your neighbor's property to do the trimming under normal circumstances. If a tree becomes a nuisance due to rot or disease, posing a danger or causing significant annoyance or inconvenience, you may be able to file a lawsuit to seek damages.

 

I've always had good relations with my neighbors, and I don't have a fence on my property. But recently, my new neighbor extended her garden a few feet into my yard beyond the property line. Will this cause problems for me in the future?

Yes, this could potentially cause problems. If your neighbor continues to use that portion of your yard as her own openly and exclusively for ten years, she might claim ownership through a process called 'adverse possession.' In such a case, she could use this claim as a defense if you try to remove her from the property after the ten-year period.

Even if your neighbor hasn't lived there for ten years, if the previous owners of her land also used your property in a similar way, she might be able to add their time to hers to meet the ten-year requirement.

If you suspect someone is using your property in this manner, it's essential to consult with an attorney to discuss your options.

 

Every year, my property tax bill keeps increasing. I don't think my property is worth as much as the assessor thinks. Can I do anything about it?

Yes, you have the right to challenge your assessment under the New York State Real Property Tax Law if you believe it is excessive, unequal, or unlawful. You can file a complaint using a form provided by the state board, explaining why you think your assessment is unfair and the specific reduction in assessed value you are seeking. Submit this complaint to the assessor.

To support your case, you can compare the assessments of similar properties, obtain an appraisal, provide information about the purchase price, or document your unsuccessful attempts to sell the property at the assessed value.

Be aware that there are deadlines for filing complaints, so contact your assessor to determine the deadline in your area. Additionally, make sure you're receiving all the tax exemptions you're eligible for, including the School Tax Relief (STAR) exemption and any property tax exemptions for seniors.

 

I want to sell my house, but I'm worried about high capital gains taxes. Should I be concerned?

It's natural to be concerned about capital gains taxes when selling a house. However, if you've used the property as your principal residence for at least two years during the five-year period before the sale, a certain amount of capital gains can be excluded from your gross income.

For individuals, the exclusion limit is $250,000, and for married couples filing jointly, it's $500,000. This exclusion applies to sales on or after May 7, 1997, and there is no age limit for eligibility.

 

I want to leave my house to my children after I pass away. Should I give it to them now?

Transferring your home to your children during your lifetime can have various financial implications, including income tax, property tax, and Medicaid eligibility. It's crucial to consider your goals and the potential consequences carefully before making such decisions.

For instance, transferring your property to your children while receiving property tax benefits for seniors could result in the loss of your senior tax exemption.

Moreover, if you gift the property during your lifetime, your children would receive it with the same purchase price as the basis for capital gains tax purposes. This means that if the property has appreciated, they could face substantial capital gains taxes when they sell it.

Additionally, if your property transfers at your death or through a life estate, the basis may be adjusted to the date of death value, potentially avoiding large capital gains taxes.

In cases of larger estates (over $675,000 in New York), there may also be estate tax implications to consider. Furthermore, transfers for less than fair market value can affect Medicaid eligibility, potentially leading to a penalty period during which you may not be eligible for Medicaid if you require nursing home care. If the transfer occurs within three years of your Medicaid application (or five years in the case of a transfer to a trust), a "penalty period" may be imposed based on the amount of the transfer.

To fully understand the implications in your specific situation and explore options to minimize any negative effects, it is recommended to consult with an attorney who specializes in estate planning and elder law.

One alternative to consider instead of an outright transfer is establishing a life estate. A life estate allows you to retain control of the property during your lifetime, and it passes to someone else after your death. This arrangement can be achieved through a deed or a will.

While you are alive, you maintain the right to possess the property, sell it, or lease it. However, it's important to note that the person who acquires the property through a life estate would also lose their rights to the property upon your death since your interest in the property ceases.

In terms of tax advantages, retaining a life estate means that your home will be included in your estate at the time of your death, allowing the capital gains to be calculated based on the fair market value on the date of your death. This is different from making a transfer during your lifetime, where the value at the time of transfer is considered.

Moreover, a life estate should not affect your eligibility for senior citizen's tax exemptions, as it would if you made an outright transfer to your children.

Another benefit of a life estate is its potential impact on Medicaid eligibility. The interest in the property held by the "remainder" (the person who receives the property after your death) has a lower value compared to an outright transfer. This can be advantageous when applying for nursing home Medicaid, as the penalty period is determined based on the amount of the transfer.

For instance, if you transfer a house valued at $100,000 while retaining a life estate at the age of 70, the value of the remainder interest would be calculated as $39,478 instead of the full $100,000 if it were an outright transfer.

However, it's crucial to understand that the specifics of Medicaid rules and estate planning can be complex, so seeking guidance from an attorney is essential to navigate your unique circumstances.

If you're having difficulty maintaining your house while caring for an ill spouse, there are programs that may be able to provide assistance. Medicare and Medicaid can offer home care services, including medical home health services, personal care services (such as bathing and dressing), and non-medical services like social work and housekeeping.

By exploring these programs, you may find support that can alleviate some of the burdens you're facing.

 

Remember, it's important to consult with professionals who specialize in the relevant areas, such as attorneys, tax advisors, and elder care specialists, to ensure you make informed decisions based on your specific circumstances.

 

For further assistance, you can visit Legal Life Lines, a Community Legal Education project of the Legal Aid Society.

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