Child caregiver exemption.

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Part of the Deficit Reduction Act where I can transfer to my son my half of the house without penalty. He has been my caregiver for years and we have both lived together for about 13 years. I consulted a lawyer who said I could do this legally without penalty but social services is treating me like a criminal when I took it all in and told them.


Yes, if you qualify and it is done correctly and you have all the correct proof, then you can do a transfer that carries no Medicaid penalty. The social workers have probably seen so many people trying to play the system that they get jaded. I wouldn't let them bother me. It is a good thing to do if your mother will need to go on Medicaid in the future. It can protect the house. The only downside is the cost basis will be what your mother paid for it if you should ever decide to sell. There could be a capital gains tax if it isn't the only house you've sold. I don't fully understand these things, so don't take my word for it without checking with someone who knows for sure.

If I remember right, the IRS will let someone realize a capital gain on one house without taxing it. This may not be true anymore. I don't sell houses often enough to keep up with these things. :)
Thank you. Yes my mother qualifies. This is the reason we went to the lawyer to get the answer and they even told us where the exemption was for her to check but she acted like I was lying. Are there forms to fill out. We just took in the doctor's letter, proof of how long we had lived in the same house, etc along with the info for my social worker. I didn't know whether I needed the lawyer to handle this or if they will eventually get it at social services.
Oh and I already owned half the house and her the other half. What did you mean by if it is done correctly?
It sounds like you had all the documentation needed. When it comes to the transfer itself, I would let a lawyer handle it. I didn't even know social workers could handle property transfers, to tell the truth.

I noticed we switched persons from mother to son. I'm not sure if Medicaid is even involved. Medicaid does have really picky requirements -- that the house is your primary residence, you have been a full-time caregiving heir whose help allowed your mother to stay out of a nursing home. I'm sure the lawyer checked to make sure all your ducks were in a row. 

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