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If mom uses the funds from the sale of her home to enter a nursing home, would the gift of equity delay her eligibility for Medicaid when the proceeds are gone?

Asked by jnolan | Mar 18, 2010

I would like to know the ramifications of a gift of equity when purch moms house. I've lived w/ her for 5 yrs. the funds from the sale would be put in an acct for her use to enter a home. Would the gift of equity delay her eligibilty for medicaid when the proceeds are gone. Would the gift need to be paid back?

Answers 1 to 1 of 1

Carol Bradley Bursack, Mar 20, 2010

Over the span of two decades author, columnist and speaker Carol Bradley Bursack cared for a neighbor and six elderly family members. Because of this experience, Bradley Bursack created a portable support group, the book “Minding Our Elders: Caregivers Share Their Personal Stories.” Her sites, www.mindingourelders.com and www.mindingoureldersblogs

Most likely. There is a five year look back period when people go on Medicaid. Any gifts of substance given within the five years before she goes on Medicaid would be likely be asked for. If she has sufficient funds to live in a nursing home without depleting her other assets, then there wouldn't be a problem. But few people do.

There are attorneys who can help you with this. Some say there are ways around the rules. I'm not an attorney, nor am I an expert on Medicaid rules, so I can't say. I would advise you to seek a professional opinion and to be sure the attorney is well schooled in Medicaid rules. You may want to clear the attorney you choose with the State Bar Association.

Carol

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