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I am disable through SS and I have my mother living with me for two years I have been taking care if her it's getting harder and harder to do because of her decline in health. She doesn't have Medicaid her income is to high $4,000 a month.but I read this on this site and was wondering if this could be done so she could receive Medicaid and get into an assisted living because now she can't afford one . Her income is $4,000 and her bills are $1,600 a month and the centers run $5,400 to 10,000 what can we do?

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Medicaid will ALWAYS (almost) pay after your mom's assets are used up. Your mom needs an elder law attorney to explain how she MAY be able to protect some of her assets. Very important, because it takes time and it takes careful professional planning.

Her $4000 monthly income will be used for her care. Call an attorney and call Medicaid.
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Twright, your questions was "Creation of a trust, can it be a house with an existing mortgage?" and the answer is yes.

Whomever inherits the house must realize that he/she will need to continue to pay on that mortgage, the taxes, insurance, etc.

Now, if that mortgage is a Reverse Mortgage, that's a whole different and very complex ballgame.... whomever inherits the house will be required to refinance to pay back the Reverse Mortgage within a certain time frame [30-90 days depending on the loan, along with interest and fees] or the house would need to be sold.

If your mom goes into a nursing home and needs to qualify for Medicaid, as mentioned above, you will need to contact an Elder Law attorney to instruct you both on how that works regarding Medicaid taking the house to help pay for your mom's care, and if you qualify to keep the house being disabled.

Is your Mom's house sitting vacant or are there tenants in the house? Or are you and Mom living in her house? If the house is vacant, that can be costly as house insurance is much higher on a vacant house, lawn must be mowed [if it isn't a condo], electricity still needs to be paid, etc.
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I would get legal advise, because it seems like I recall there being some Medicaid exception for a house being allowed to go to a ADULT DISABLED child. I would explore all loopholes.
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My mother still owns her house with a mortgage and life insurance bill car insurance but she doesn't drive I use it for her for dr appt. and she has a credit card she is still using and paying.
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My mom is living with me in my house because she can no longer take care of her self. My moms house she still has a mortgage and a second mortgage she is still paying. We had renters but they are 2 months behind in rent and we are evicting them at the end of the month.
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In order to put a house with a mortgage in a trust the bank or other entity that holds the mortgage must approve of the language in the trust. I put a property that I still had a mortgage on in a trust and it took several months sending documents back and forth to a Chase Bank office in Cincinnati. This action had nothing to do with Medicaid planning though.
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Ginach, when was your trust created? I'm wondering because I've also dealt with Chase on trust issues, since my sister's house was subject to a mortgage. However, our attorney never advised to contact any mortgagee, nor did I until other issues arose during administration. This is interesting and a bit unsettling.

That could really be problematic if a mortgagee had to approve trust language. I can't think of a reason why it would need to or even have the right of that kind of review.

TW, I'm going to address an issue which hasn't been raised before, and I want to emphasize that I'm not being critical, but just realistic.

Your mother's income is substantial; in fact it's more than I ever made when I was working, and I had what I considered well paying jobs.

Someone reviewing her situation and financial condition might wonder why her expenses are so high given that she's living with you, and what could be done to cut the expenses to make an AL facility more affordable. Suggestions might be made that you attempt to cut her expenses and reallocate those freed up funds either for a placement cost or to bring in people to assist in her care.

I think the issue of her income is going to be the deciding factor in even considering applying for Medicaid, but I'm not well versed in this subject.

I would think, though, that you've gone to the expense of adding space for her, so perhaps you could refocus and think how you could maximize that addition, with outside help as needed. Even bringing in outside help wouldn't come close to the huge cost of an AL placement.

Back to the issue of a trust, you probably should explore that issue with an estate planning attorney. With an income of $4k, I imagine that your mother has some assets and it would be wise to explore options of planning for minimal taxation when she passes (not to be maudlin, but just cautionary).

I hope you find some solutions which benefit you and your family and give you comfort in knowing that you're doing the best you can for your mother.
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twright, why, with 2 mortgages, are you wanting to keep your mom's house if you're not planning to move her and you - and possibly your husband - into it? but having said that, after talking to our local Council on Aging (which she says we all are, btw) in regards to hubs aunt and uncle - I somewhat agree with Garden Artist - that although I understand the asset issue relating to Medicaid - which you do realize you would still have the 5 yr. lookback period anyway - I still think the greater issue would be the income - looked into it for them with just a Medicaid waiver, which has a greater income limit, especially for 2, and even for both of them, with their combined income being less than your mother's, they don't qualify; the only thing they might qualify for is some food assistance, after her finding out that if you apply after you're over 60 you can deduct medical expenses, which might possibly could be construed to be outside help, although I'm not really sure; we never quite got that far; she was just upset that the food service people don't even tell you that; not sure how she actually found it out. It's possible, if you could figure out a way, that if she could be construed to pay for the addition to your house, since it was for her to live in, it wouldn't be considered as a gift to you, since it was for her benefit and could be used to draw down her assets, if for no other reason, than, like ga said, for when she passes; this lady at the aging place was telling about her personal situation - well, her daughter's, whose dad must have already passed, since, when they did, she was the only blood heir and there was $10,000 in taxes that had to be paid for them afterward; just thankful they had it left to pay it with but was also a big pain to get the right documents from the bank to do it with; attorney had to get involved to get them. But anyway, thus far, for nothing related to Medicaid have we found any provision for deducting medical expenses from the income, at least not for an adult. But they still have them, just not being used for medical but in their case for credit card and it has been suggested that those expenses be cut, as in just not make those payments even though they might end up being considered taxable income, still felt would be less than the payments they're making now but thus far they've refused to consider but they also aren't living with any child either and getting harder for them to live by themselves like assuming got to be with your mother, why she's living with you, right?
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Hi, Twright: I can see the frustration you are going through with your disability and your Mom's care while trying to pay bills. You did not mention what age you and your mother are. I will pray for both of you. For example, my mother was 95 last year when she passed, and I am 59. Three years ago when I lost my job, Mom was paying most of our condo's bills until she was moved into assisted living because of her declining health and repeated falls in our condo. Two years ago, Mom went on Medicaid when her own funds ran out. I am still unemployed and pay all of my own condo's bills alone except with some other relatives' financial assistance.
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If you sell Mom's house, the proceeds will have to be spent down for her care, but that may be fine; if you do not sell, it can be an exempt asset and won't stop her from getting Medicaid if she intends to return, whether or not that is realistic, but then you are paying for the insurance and upkeep of the house, plus if it goes unoccupied long enough, the insurer may even balk at covering it.
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