Could Medical Debt Really Take James Van Der Beek’s Home From His Family?

Beloved '90s star James Van Der Beek died this week from colorectal cancer at just 48 years old. 

The “Dawson’s Creek” star died surrounded by loved ones at a 36-acre Texas ranch property he and his wife turned into a private sanctuary for their family after leaving Los Angeles in 2020. 

Shortly after news broke of his death, a GoFundMe campaign was launched by his friends, asking the public to contribute funds to his wife and six children so that they could remain on the ranch in Spicewood, TX, a rural town outside of Austin.

James was diagnosed with stage 3 colorectal cancer in August 2023, and those who set up the donations campaign made it clear that the cost of his medical bills had landed the family on hard times.

“The costs of James’ medical care and the extended fight against cancer have left the family out of funds,” the page read in part. “They are working hard to stay in their home and to ensure the children can continue their education and maintain some stability during this incredibly difficult time.”

While everyone from loyal fans to high-profile Hollywood players like Steven Spielberg and Zoe Saldana have contributed to the fund, the request has raised concerns over how medical expenses can put one’s home at risk. 

The financial struggle for James Van Der Beek’s family

After the GoFundMe page launched, a difficult conversation sparked online regarding the realities of paying for medical coverage in America. 

While details of James’ health coverage remain unknown, the family has been open about their struggles to financially cover the actor’s cancer treatment over the last two years. 

Last December, the actor auctioned off a number of pieces of memorabilia "to help with the financial cost of fighting cancer." This came after Michelle Williams, Katie Holmes, and the entirety of the “Dawson’s Creek” cast reunited in NYC for a charity event to raise money for the family. James was too ill to attend, but his family was there to thank fans for their help. 

The average total cost of cancer treatment is $150,000, according to AARP The Magazine. This figure, however, can vary significantly, based on the patient's specific cancer, the type of treatments received, available resources, and their cancer health insurance coverage.

How medical debt puts your home at risk

When a loved one falls ill and needs care, those responsible for their well-being must also assess how to manage the cost of that care.

Jaclyn Roberson, a senior partner at Roberson Duran Law PLLC in San Antonio, TX, a mere 90-minute drive from the Van Der Beek ranch, explains to Realtor.com® that most homeowners are actually safeguarded from losing their home to medical debt, with one major caveat.

“The likelihood of a family home being lost to medical bills after someone passes is very low, unless the family prioritized paying off medical debt over paying the mortgage,” she explained. 

She adds that, in Texas, creditors must follow specific provisions set forth in the Texas Estates Code to make a claim against the estate to receive payment. “In terms of assets, Chapters 41 and 42 of the Texas Property Code tell us what assets are exempt from claims by creditors. That includes homesteads,” she adds. 

Having said that, Roberson concedes that there are still avenues in which a home can be seized over medical care. 

“A family home might be at risk if a person who has an ownership interest in the home had to use Medicaid to pay for long-term medical care,” she explains. “That could trigger a claim under the Medicaid Estate Recovery Program (MERP), which gives the government the right to request their money back once the Medicaid recipient passes away.”

How to save a family home from medical estate recovery

If a loved one needs long-term care and you’re concerned about your home being at risk, there are some proactive steps you can take. 

Transferring the home to an irrevocable trust or gifting it to children can remove the property from the Medicaid estate, but both strategies must be completed more than five years before needing Medicaid to avoid penalties and delayed coverage.

Roberson offers another avenue. “We often encourage people to protect their home from MERP by executing a Lady Bird Deed,” she says. “That is an enhanced life estate deed that transfers ownership of real estate to another party immediately upon the passing of the owner. If Medicaid then tries to collect, that house is no longer part of the estate because it is now owned by a third party.”

Helping James Van Der Beek’s family stay in their home

At the time of this writing, the GoFundMePage set up for James’ family has raised over $2.2 million. His friends responded to the outpouring of support by reminding every contributor what their money is going toward. 

"Your generosity will help cover essential living expenses, pay bills, and support the children’s education. Every donation, no matter the size, will help Kimberly and her family find hope and security as they rebuild their lives.”

It remains to be seen if the family will continue to live in the 5,149-square-foot home. Originally, the family leased the property as they "tested" out living so far from Los Angeles.

"We're going to try Texas out for a year and really give a lot of love to this property," she said on Instagram Live, according to a story from People at the time.