QUESTION
Can we get reimbursed from the proceeds from the sale of mom's home to cover assisted living costs if my brother and I own half of the house?
Asked on Feb 28th, 2014 on Estate Planning - Nevada
More details to this question:
My mom needs to sell her home to help pay for assisted living care. My brother and I inherited ownership of half of the property after my dad's death (from living trust). Until home is sold, my brother and I will need to pay for her care. After her home is sold, are we able to reimburse ourselves from my mother's portion of the proceeds of the sale of the house? If so, other than keeping receipts, are there any other procedures we need to follow so that there are no questions in the event that my mother ends up needing medicaid assistance after using all of her funds. Thank you.
8 ANSWERS
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Suggest you seek the assistance of a probate/trust attorney to determine the applicable rules re reimbursement from the state for your out of pocket costs for your mother's care; the half of the house your mother owns will need to be used for her care; suggest further consider selling the house now, and splitting the proceeds so your mom can pay her share of the medical costs.
Answered on Mar 04th, 2014 at 9:16 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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You should see a lawyer now who is experienced in elder law and Medicaid practice. In the long run, this will probably save money. If your mother is not incapacitated, you could enter into an agreement with her to pay for care and be reimbursed from her share of the home proceeds. If she cannot enter into an agreement now, I think there's a risk that someone (another heir, or the state DHS) might assert that you paid for her care out of your filial duty, and should not be reimbursed. There may be a better approach (perhaps a direct deal with the care center).
Answered on Mar 04th, 2014 at 9:15 PM
Edwin K. Niles
If Mom is one of the trustors, the trust would still be active. A review of the trust would be necessary.
Answered on Mar 04th, 2014 at 9:15 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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This is a very complex situation and the laws surrounding this area of law are immensely complicated. I believe your best bet is to meet with an elder law lawyer to review the entire situation. Payments for services are generally okay, but procedures make a difference and more information is needed. Keep in mind that there is a 5 year look back period for transfers from your mother's assets. Also, she is allowed to have a home and that will not affect her Medicaid eligibility. But the proceeds from the sale of a home are not exempt. There are lots of things to consider, here.
Answered on Mar 04th, 2014 at 9:15 PM
Thomas Edward Gates
Your mom, you and your brother do not own the house, the trust does. You must follow the terms and conditions within the trust document. If your mother does not have current assets to pay for her care, do not mixes your assets with hers.
Answered on Mar 04th, 2014 at 9:15 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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Financial assistance you provide your mother will be considered gratuitous. You must substantially and explicitly document the assistance provided, including placing a lien on her interest in the home to secure the assistance provided. Your mother's interest in the home, which would include the net proceeds on the sale of the home, can only be given to others in a fair market value transaction. Otherwise, the transfer of net proceeds will impact when and if Medicaid will provide assistance for your mother.
Answered on Mar 04th, 2014 at 9:14 PM
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This question is to important to be asking on an internet website. There are many factors that go into answering that question, including whether or not your mother has capacity to agree to such a reimbursement, and what other beneficiaries there are. Your mother needs to see an attorney and likely put such provisions in writing, consistent with and as allowed by her trust now, otherwise there are no guarantees if the other beneficiaries fight it later.
Answered on Mar 04th, 2014 at 9:14 PM
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You need to meet with an elder law attorney who will need to review the trust and chain of title to advise you.
Answered on Mar 04th, 2014 at 8:52 PM