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Dad's in nursing home on Medicaid. Mom is ill at home. I have heard that if someone moves into the family home to tend someone, that after 2 years of caregiving, the home can go to the caregiver and no to repay the medicaid bill. The home is worth approximately $150,000. They live in PA.

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If there isn't a house at the end of the road, will your daughter do this?

Sorry to be so blunt.

Now, the answer to your question is to call a lawyer to find out what the laws are in your state.
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GA, in general Medicaid would have first dibs on the proceeds from the sale of the house upon the Medicaid's recipients death, no matter what the will says. There are a number of exceptions, and one of them is for certain relatives if they have lived in the house and prevented the recipient from going to a care facility for at least two years. Such a relative's inheriting the house would come ahead of Medicaid's claim on the house. Exactly how this should be handled in a will is what a lawyer could tell them

I will point out that caregiving with the thought that there will be a reward after the recipient's death is always a gamble. Grandma may get run over by a beer truck after 20 months. She may need care beyond what can reasonably be provided in a private home. It is always much better if the compensation can be given as-we-go. But if this is a caregiving arrangement that makes sense in other ways, they might as well take advantage of any benefit available. That is why they need to see a lawyer.
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GA -- no need for a red face. Who knows these things unless they have had a reason to look into it? Another exception is a handicapped child. Another would be if the home is a farm and selling it would deprive relatives who work it of their livelihood. It is complicated and it is subject to change and anyone potentially impacted by it should consult a lawyer!
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Where did you get this information? The house is bequeathed to whoever is named as beneficiary/heir in a Will or Trust, or as a joint tenant with rights of survivorship, unless Medicaid is involved, in which case it can be subject to Medicaid's asset recovery program.
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Just in case I missed something or misinterpreted it, after reading Jeanne's answer it occurred to me that perhaps you were thinking that after 2 years of service, your mother would bequeath the home to your daughter. Was this your thought? Or was it as I originally assumed that title to the house would somehow be otherwise transferred to your daughter after 2 years of caregiving?
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Jeanne, well, I'll settle for a pink face then. Still, I gave information that was incorrect and could have mislead the OP.

You're right on consulting a lawyer, and that's one of the reasons I recommend it so frequently. These Medicaid issues can, or rather, are, so complicated.

Thanks again, and to the OP: I'm sorry for my inaccurate post and understanding of Medicaid priorities.
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I think that is very possible. Would Mom need to go into a facility if she didn't have live-in help? I hate to be so blunt, but is she likely to live two more years, given her condition?

Before you take any firm steps, start with consulting an attorney who specializes in Elder Law. He or she can give you specific answers about the 2-year thing and also help you set things up so that they are most advantageous to the family and also strictly legal.

Is your daughter eager to care for Grandmother? What kind of care does she need? Caregiving is a huge undertaking and very hard work, especially emotionally. Is your daughter employed now? What would be the impact of an interruption to her career? Is she in a relationship?

There are lots of things to consider besides whether she would "earn" the right to inherit the house. But for that aspect of it, see an Elder Law specialist.
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Another thought - how is title held now? Is it jointly between your mother and father or does your mother hold title alone?
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Jeanne, I was not aware of this possible priority of interest ahead of Medicaid's interest. And it is an interesting provision.

I sincerely appreciate your explanation - thanks very much!

I stand corrected - somewhat red faced and wrong!
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Another thing to consider on the caregiver exemption, is that they may have to provide documentation that their caregiving was required and that kept the Medicaid applicant from a NH for 2 years prior. That means getting a letter from their physician. Many doc's just won't do letter like this (or letters of competency) as they don't want to get involved in anything "legal".

Also the caregiving has to be full-time, so if daughter has a full-time job or school, then her caregiving would not be full time so no MERP exemption.
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