Follow
Share

I have been sharing a house with a friend for a number of years. The house is in her name and she lived here prior to my moving in. She is now in a severe health crisis and having to apply for emergency Medicaid and Medicaid, Will have to temporarily be in a rehab center before coming home due to an amputation and now serious heart condition, She may well make it and come home and resume her life.


She tried to protect me by leaving the house to me in her will. However it is my understanding that while Medicaid exempts a primary residence that the recipient intends to return to, sooner or later the home will be required to be sold to recoup what they can. I suspect whatever happens I will outlive her.


Does anyone know if there’s anything I can do to be able to keep the house. I will be her caregiver when she comes home. Also, I currently pay the bills on the house, and am paying for the necessary modifications because she can’t. What if she were to sell the house to me for the payoff on her mortgage, and we continue to share the home?


I intend to stay and help her in any way I can. Her being able to return home at all depends on it. She has a long hard road ahead of her but I’m not going to be a Debbie Downer and assume she won’t make it. But, how do I protect myself as well? I am a bit concerned.

This question has been closed for answers. Ask a New Question.
This article explains the various exemptions. The two year Caregiver exemption that was mentioned in a previous post is for an adult child who lived in the home while caring for a parent for 2 years.

https://www.medicaidplanningassistance.org/can-medicaid-take-my-home/
Helpful Answer (0)
Report

If you were her spouse, you do NOT have to yourself become impoverished for her to be eligible for LTC Medicaid. You would be the CS aka Community Spouse & allowed to have your own income and up to a set amount of your own assets. As a CS you’d segregate these into your own bank account.

For most states the CS income max is abt $3K and assets at $128k. If you go over that, you don’t qualify for CSRA /MMNA and end up doing a spend down on those assets above the max (the $128k). CSRA MMNA are resource allowance taken from the NH spouses income and waived over to you to enable you to continue to live in your community, in your home and lay for utilities, insurance, food, etc. There have been posters on this forum, whose CS parent got almost all of the NH parents SS income as the CS had extraordinary prescription drug costs and utility costs to the point that all the NH got as the copay was $35.00. If there’s a mortgage or car note, and CS needs NH spouses icons to pay throes, they file for CSRA / MMNA.

again a CS are not themselves expect become impoverished only the NH one has to be “at need” financially and medically 4 LTC Medicaid.

CS regulations are not simple. If y’all get wed, I’d find a CELA level of elder law attorney ahead of all this to go over how to set stuff up so no future issues should she end up needing to go into a LTC facility and she applies for LTC Medicaid. Please pls pls do not try to DIY this.
Helpful Answer (1)
Report

Please pls pls do NOT spend any of your own $ on anything house.

Your friends has some sort of monthly income. It’s her home she needs to use her $ on her needs and her property first & foremost. You need to save every penny as you know the likelihood is you will not inherit the home. You’ll need every cent to keep yourself from becoming homeless in your future.

Should she end up selling her home, as she’s going permanently into a NH, she cannot easily reimburse you from the Act of Sale $ for any of the many things you have bought or paid for her home. It looks like “gifting” and will keep her from being eligible for LTC Medicaid (like in a NH). To challenge this, well it won’t be simple & will be exhausting. Sounds like you’ve already invested a tidy sum, try not to do this anymore.
Medicaid tends to look at anything we do for our family as done out of a sense of familial responsibility, & for free. To get around this, a Me,o of Agreement Or Promissory Note can be done but these kinda need to happen before you start doing outlay. Your past that point. That you are not blood, might enable you to do some sort of agreement for payment for services. If she’s in rehab and the plan is she’s coming back to her home, I’d try to get a personal care agreement done btw her & you for her to pay you a smallish actual sum to be her caretaker and your rent is done as “in kind” for careging as well. Her status has changed as she’s now an amputee so you do a caregiver agreement based on the new situation. Comprende? It’s not a DIY to do these properly, have the atty who did her will do the agreement for her.

im guessing you are gearing up to have her return home and your pretty realistic about how difficult it’s gonna be. Honestly if your up for this and the other choice is homelessness, I’d do it. It sounds like you two like each other and it’s more physical issues than elderly w dementia, which to me is a good thing. Try to find whatever programs out there that will install handicapped ramps, adaptive stuff for the bathroom (like transition chairs to help her get in & out of the tub). Get PT to come to the house to help her “gait training”. If she can’t get Medicaid paid in-home health 3-4 days a week then have her get evaluated for hospice (Medicare) as they can possibly come in 2-3 times a week for 4 hrs or so to give you a bit of a break.

Out of curiosity, does she have any family? And what is her relationship with them? Are you on her banking?
Helpful Answer (0)
Report

This is just an opinion. I had a friends whose legs were amputated about the same age. Caring for an amputee will not be easy. They need to be transferred if they can never use a prosthesis. Both my friends could never use a prosthesis. Both had diabetes which caused kidney damage. Both wheelchair bound.

Did you mean Medicare and Medicaid. To get Medicare your friend will need to get Social Security Disability and that can take a year or more. Then, is she already collecting Social Security? I don't think she can get SSD once she starts collecting SS. These are questions for SS.

Why does she need Medicaid? For healthcare insurance? For "in home" help? Yes, her house is exempt for now. But once she passes, its not and Medicaid will try to recover what they put out for friends care. Since you have been a resident for years, not sure if you can be kicked out because its ur main residence. If u can prove you can pay the bills you may be able to stay. If you are a caregiver for 2 yrs and can prove you can pay the bills you may be able to stay. In both scenarios, a lean will be put on the house and will need to be satisfied if u pass, sell or leave the home.

I suggest you both see an elder lawyer to go over your options.
Helpful Answer (0)
Report

I would also be concerned. See an elder law attorney for assistance. If you were to marry, then you could keep the house. If you were to buy it, it would have to be at market price, the remainder of the mortgage would not work. The difference between market and remainder of mortgage would cause a penalty for your friend where they would become ineligible for medicaid.

See that attorney.
Helpful Answer (3)
Report
tojayturbo Nov 2021
Thanks for your answer. I suspected as much. I think either way you look at it I have to get my own place eventually and be careful how much of my resources I put into this house. Hypothetically, my retirement savings would probably all be gone if she were my spouse, because of the spend down required. Sadly, our healthcare system is set up to leave people in the cold.
(1)
Report
This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter