QUESTION
Is there a way to update my mothers shore house without Medicaid using the value of the improvements to sell the house for a higher amount in 2 yrs?
Asked on Oct 01st, 2012 on Elder Law - New Jersey
More details to this question:
My mother has alzheimers. She lives with us but has a shore house. It needs some work that we would like to take care of now. In a few years we would like to buy the shore house. If Mom needs nursing home care within the 5 year look back and the house needs to be sold, or after the 5 year look back,splitting three ways if mom should die, is there any way that we could buy the house at the price that it would go for now, instead of after it is updated? We don't want to put some money into it to add value to the house, then have Medicaids appraisal at the time of sale be higher because of the improvements we made.
1 ANSWER
2 Awards
This is a difficult question to answer without knowing more information. If you transferred the house now, then the clock starts running on the five year look back period. If you did the improvements to the house, and mom needs nursing home care within the look back period, you can always recoup the funds you put in to repair the house. Does mom have other assets? what you need to do is look at mom's entire financial picture, what assets she has, what you could transfer, and what you could use to pay for her care if she needs care within the five year look back period. you mention splitting the house three ways - would that be between another sibling? I could help you with this process, but doing this type of Medicaid planning is too complex to do in a question and answer forum like this. If you would like to discuss it further, feel free to call my office.
Answered on Oct 02nd, 2012 at 8:47 AM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship