When an elderly person has to go to a nursing home, will all of her assets (including house) be turned over to them?

A very good question and one we often address. First, the nursing home does not "take away" anyone's home. If a person requires nursing home care or other long-term care, the person, or his family must pay for the cost of care. Part of the cost may be paid by Medicare after a hospital stay; or from long-term care insurance; or from savings. In any event, once the person no longer has sufficient funds to pay for their care, the person may apply for Medicaid, which is assistance provided by the state and administered by the county Job and Family Services office. An application is made and the county office determines if the person qualifies. Having an interest in real estate does not disqualify the person; however, the property must be listed for sale within 6 months of entry into long-term care. In this case, since the mother is the owner of the home, if she needs to apply for Medicaid assistance, the home is considered her asset. However, it may qualify for an exception to the rules which provides that the home is exempt if it is the residence of a disabled child. You will need to determine if the disabled child can live there independently.   Note: Specific facts may affect the advice given in the case.  

A person entering a nursing home must pay for his or her monthly living fee either by private-pay or long-term care insurance (Medicare doesn't pay for long-term nursing home care), or a person may also apply for Medicaid, which will pay for nursing home care.  To be eligible for Medicaid, a single person cannot have countable assets of more than $1,500.  A home is exempt as a countable asset for 13 months after the person is admitted to the nursing home.  The Medicaid office and the nursing home do not want title to the home, but could force a sale of the home to pay for the nursing home bill once 13 months have passed and the home is no longer an exempt asset. Medicaid rules specifically allow, however, for the home to remain an exempt asset if the individual's child is disabled and resides in the home.  OAC 2101:1-39-31.  Medicaid rules also allow the home to be transferred to the disabled child or to an adult child who resided in the home for two years and kept his or her parent out of the nursing home.  OAC 5101:1-39-07(E). The son's inability to read or write does raise a few questions, such as his ability to successfully maintain the home and whether or not he is in need of a guardian.  This may mean that while the home could be transferred to him, such a transfer may not be in his best interest.  It may be a better idea to transfer the home to an exempt trust for the benefit of the son, so the trustee can manage the home for his benefit and ensure he can continue to live there as long as he wants. To summarize, there are ways to plan for these issues, but it does require careful analysis and often with the guidance of an elder law attorney.  Good luck. This response is general in nature and is not legal advice. No attorney client relationship is formed by it. Further, the response does not represent the opinions or views of LexisNexis or its affiliates companies. You may wish to consult an attorney for specific legal advice.