QUESTION
Is there a way to shelter a property from going to Medicaid?
Asked on Nov 09th, 2011 on Labor and Employment - Georgia
More details to this question:
My mother is in a nursing home under self-pay but will very shortly have to apply for Medicaid. She owns a house which is rented out. Is there a way to shelter this house from having to have any future proceeds go to Medicaid?
5 ANSWERS
3 Awards
Medicaid is entitled to repayment. I will assume that your mother is not married, over 50 years of age, and does not have any disabled children for whom she is providing care, if my assumptions are correct and she does not have long term care insurance, the proceeds of the home will be used to reimburse Medicaid. Since the home is rented out, those specifics need to be addressed, as the home may need to be listed for sale now rather than simply subject to reimbursement at the time of her death. Your mother or her attorney in fact or legal guardian should speak to an attorney about the specifics of her situation.
Answered on Nov 14th, 2011 at 2:44 PM
Probate Attorney serving Newport, OR
at
Minor, Bandonis & Haggerty P.C.
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There may be, but the Medicaid rules are complex and the analysis must always be done in the context of all the information on the person's estate plan and their assets (much more information than you'd want on a website). You should contact a lawyer who specializes in "elder law," to get the straight scoop. Be prepared for the possibility that there isn't much that can be done. The important thing is for the elder to get the care that is right for her. One thing to consider (if the house is generating decent income) is a bona fide agreement to buy the house from her for full value over time (with the rent paying the purchase contract payments). See a lawyer to make sure that is done correctly.
Answered on Nov 11th, 2011 at 8:23 AM
1 Award
You need to contact an attorney regarding placing the home in an irrevocable trust. This will shelter the home from any medical recovery lien and she will likely not need to claim the rental income as income for medical purposes.
Answered on Nov 11th, 2011 at 8:05 AM
Trusts and Estates Attorney serving Troy, MI
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Barron, Rosenberg, Mayoras & Mayoras, P.C.
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Absolutely, Even though Michigan has now enacted estate recovery it is only a probate recovery. If your mother would establish a lady bird deed she could protect the home, avoid probate and avoid any Medicaid complications. Additionally, if your mother is renting her home then only 35% of the rent will be counted as her patient pay amount and she can keep 65% of the rent to support the home. In fact you can rent it from her for little and then sub-lease for more and protect more income. Also, you still may be able to protect 50-70% of her remaining assets.
Answered on Nov 11th, 2011 at 8:05 AM
Glen Edward Ashman
Not unless she will wait 5+ years to go to the nursing home. This should have been planned when she was young.
Answered on Nov 11th, 2011 at 8:05 AM