What am I to do in this situation?

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My grandmother receives medicare and medicaid QMB but needs to transition to medicaid that pays for nursing home care. She's been in a nursing home since June 2010. Medicare payed for the first 100 days of her stay and I used her social security (761.00 monthly) to pay for the difference. She deeded her property to me for $10.00 in April 2010. I'm concerned once I've submitted the paperwork for nursing home medicaid the state of Texas will take the house (appraised at 59,000) that she's deeded to me or she will be penalized and be unable to stay in the nursing home forcing me to care for her. I've cared for her for many years and can't physically and emotionally do it anymore because she stopped walking and has dementia. What am I to do in this situation?


If you lived with her when you cared for her I think the house is off limits to medicaid. Better contact an attorney to be sure.
There is a "look back" period of 5 years. I think this covers most assets that your grandmother possessed in that time. I am not a Medicaid expert, so I don't know if the property she deeded you would fall under her assets. If so, the property may have to be sold in order for her to continue receiving Medicaid care. In essence, when someone goes on Medicaid, they are saying that they have no viable income or assets. If they find that she did indeed have these assets in the last five years, they may ask that she relinquish them.
But, as I said above, I am not an expert. I would contact an elder attorney or a Medicaid expert so that you know where you stand.
good luck...my heart goest out to you...these are hard times for all of us...
394 helpful answers
You almost had it right. Transfer of the home directly from your grandmother to you will be considered an uncompensated transfer resulting in a penalty.

If the property had remained in her name only as a homestead residence it would have been an exempt asset with respect to Medicaid qualification. At her demise, however, the value of the property would be subject to Texas Medicaid Estate Recovery.

What you needed to do was to create an "enhanced life estate" in the property for your grandmother (aka "Lady Bird Deed").

Here is how to fix it:

1. Quit claim the deed back to your grandmother solely.

2. Quit claim the home back to you but this time including language giving your grandmother an "enhanced life estate" in the property.

What the "enhanced life estate deed" does is essentially transfer the property to immediately but gives your grandmother, while she is alive, the right to do anything with property she would otherwise do if she owned it (live in it, rent it, sell it, burn it down, etc.).

At her demise the property will devise to you and, this is the key, will avoid probate and, therefore, Texas Medicaid Estate Recovery procedures.
Thanks Ralph.

If I get a Ladybird Deed, will TX medicaid still penalize my grandmother for receiving benfits since if wasn't done 5 yrs prior to her being placed in a nursing home or receiving benefits?
394 helpful answers
No. If you do this prior to application there will be no penalty and the house will devise to you upon her demise with no attachment by Medicaid.

If you have an application filed I would withdraw it until you complete this transaction.
In NJ, for Medicaid qualification they start with requiring 6 months worth of financial transaction data from date of filing backwards. If she withdraws the application now what could be the potential impact on when she should refile as once the 100 days of Medicare coverage ends how soon can they start billing you if you don't have an active application in the Medicaid queue? Generally speaking of course, as I also guess this can vary from state to state.
My mom is on medicaid living in a nursing home . We thought she had put property in my name 15 yrs ago but it is not. Can this be fixed so they dont take her house when she dies.

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