Transfer the deed to whom ever you would like to benefit from it. If the deed is in your name only there should be no issues. You have to check your states rules bc i know in my state there is a 5 year look back on all assests. Meaning if you transfer today and tmrw you have to go on medicaid/pass away they will take it. But if you transfer today and says nothing happens for another 10 yrs there is no claim to your home and it will go to whom ever you wish. So check your state laws and rules about medicaid and look back times. Hope this helps
When and how the deed was transferred is very important and key to answering this question correctly. I would find a elder law attorney specializing in Medicaid, pronto. An attorney can advise you on how to protect your assets for the benefit of your children. Ask specifically about spousal impoverishment.
I always have trouble with this issue....if Medicaid is used to pay for nursing home care (isn't that our tax money?) and if there are any assets (house) left, shouldn't that be used to reimburse for the care? But then you have people changing the deeds to put their children on ...so they can keep it or sell it and keep the proceeds after their parents passing.. I feel that is cheating. But maybe I'm missing something and maybe I should talk to my parents about changing the deed to my name. I do have an aunt who has been in State care for the past 30 years or so. The family farm is in her name and will be sold after she passes. Those funds will be used to pay the State back for her care.
Kashi- Ask yourself what your parents would want. All assets going for care of some of those going to children? Also keep in mind that we as well as our parents have paid into the system as well to pay for Medicaid. My grandma paid for her own care in a nursing home, she lived to be 101. All of her assets went for her care. But eventually she ran out of money and was on Medicaid for the last six years of her life. She would rather that the assets were reserved for her children. But, because a family member was not willing to care for her she was required to spend her money for her care. Care is care and should be paid for regardless of who provides it. Raising a child is much different than caring for a sick parent, who will never get better and often comes at great sacrifice by the child caregiver.
A significant difference in some of these cases is that children take the responsibility of caring for parents, sometimes in parents home. Give up own homes, life, career, family and everything else. This is why, in some states, Medicaid allows property to be transferred to a child if child has cared for parent, keeping them out of institutions for at least two years, but they have done it for much longer in some cases. If these child caregivers are not compensated for care by parents, which in many states is permitted by law, we are creating yet another generation of eligible Medicaid recipients in those child caregivers, who have given so much, when costs are higher.
Thanks 'gladimhere".....I've always pondered this dilemma. I do believe that child caregivers should be compensated in some form or fashion for caring for their parents. If I end up having to care for one or both of my parents, I would probably keep their SS income toward that care. It's just the house I guess is the main issue that is left 'out there". In my State, TN, I don't think the house is exempt and after the last parent has passed (after being in NH using Medicaid) the estate must pay back the funds used. It's just that if the parents' own a $500,000 home and transfers it to a child and then the parent(s) must use medicaid for NH care..that's the part I think is unfair to leave taxpayers to pay for the care and the children get to keep the proceeds from the home.
You should protect yourself legally by having a contract indicating services to be provided and the agreed upon compensation, as I've been told, to avoid any accusations or charges for misusing/stealing/embezzling your parents' assets.
MrsMagoo - the state does NOT want your mom's or anyone else's house. The states are not in the "little old ladies house" real estate business. BUT what the states are required to do - in order to participate in Medicaid - is to try to use the assets from the Medicaid recipient to pay or recover ("recoup") some of the costs paid on their care and paid for by Medicaid. This is done via MERP after death and via the 5 year look back when they apply. Medicaid is for those "at-need" so they have to qualify for needing "skilled nursing services" and financially "at need" which is basically impoverished with 2K in income & 2 K in non-exempt assets. The home if it is their primary homestead is an exempt asset except in unusual situations. If a spouse living in the house, it is always exempt. Now under MERP, there are exemptions to recovery and expenses allowed to off-set recovery. What they are and how they have to be applied for is different for each state and very much dependent on state death laws. But the key to the exemptions and expenses is that they HAVE TO BE FILED FOR TO MERP and within the very short specific time-frame that MERP requires.
If you don't, then the state can place a lein or a claim on the property. So any sale or transfer of the house will have to have the MERP claim or lien "lifted" before a sale or proper transfer can be done. State doesn't want the house but state wants proceed$$'s from the sale or value of the home to recoup Medicaid payments.
The states have been able to do some sort of recovery since the 1990's. BUT rarely was there anything definitive done till recently. In the early 2000's, the fed's required the states that in order for them (fed) to do the Medicaid matching, they (state's) would have to come up with a recovery plan. As each states Medicaid program is administered by each state differently, how MERP is done depends on your state laws for probate, death & property rights. The states grandfathered all existing Medicaid recipients too so if you were on Medicaid before 2005 or 2006 (depends on state) then there would be NO MERP done as the rules had changed.
Kashi - this last sentence is important for your family to know and look into.
It's a lot to wade through and really it's my thought that most of us need an elder law attorney to make this happen correctly. Long term planning is the key but most family & their elderly just don't. It is my experience that if they live long enough, & unless are generationally wealthy, they will run out of $$ & need Medicaid.
kashi - the ability to "transfer" a house without Medicaid finding out doesn't happen very often. All real property ownership is recorded in the state's database and is just a few keystrokes for the Medicaid caseworker to find out to the penny what stuff sold for.( I don't know if all states are doing this but we had to do a separate TIN paperwork for property we bought a couple of years ago.) So all that data is there, state will find out, therefore Medicaid will find out and a transfer penalty done on the Medicaid recipient. Now how that get's enforced is a whole other issue….
I agree Igloo and others..Medicaid is a very complicated process. My Caregiving group that meets once a month had an Elder Attorney come and speak...and wow...it's is mind blogging...there's a whole set of rules for what's considered exempt and not exempt from including as assets. The home, in TN, is not exempt if both spouses have passed and there is money owned to the State for NH care. Of course, it's understood that the recoup method is a lien and if and when the house is sold, the State is probably first in line to get reimbursed from the sell. You almost have to have an Elder Attorney to help navigate the process. So it would probably cost a couple thousand to get someone approved for Medicare but probably worth the expense.
Ask yourself what your parents would want. All assets going for care of some of those going to children? Also keep in mind that we as well as our parents have paid into the system as well to pay for Medicaid. My grandma paid for her own care in a nursing home, she lived to be 101. All of her assets went for her care. But eventually she ran out of money and was on Medicaid for the last six years of her life. She would rather that the assets were reserved for her children. But, because a family member was not willing to care for her she was required to spend her money for her care. Care is care and should be paid for regardless of who provides it. Raising a child is much different than caring for a sick parent, who will never get better and often comes at great sacrifice by the child caregiver.
A significant difference in some of these cases is that children take the responsibility of caring for parents, sometimes in parents home. Give up own homes, life, career, family and everything else. This is why, in some states, Medicaid allows property to be transferred to a child if child has cared for parent, keeping them out of institutions for at least two years, but they have done it for much longer in some cases. If these child caregivers are not compensated for care by parents, which in many states is permitted by law, we are creating yet another generation of eligible Medicaid recipients in those child caregivers, who have given so much, when costs are higher.
The states are not in the "little old ladies house" real estate business. BUT what the states are required to do - in order to participate in Medicaid - is to try to use the assets from the Medicaid recipient to pay or recover ("recoup") some of the costs paid on their care and paid for by Medicaid. This is done via MERP after death and via the 5 year look back when they apply. Medicaid is for those "at-need" so they have to qualify for needing "skilled nursing services" and financially "at need" which is basically impoverished with 2K in income & 2 K in non-exempt assets. The home if it is their primary homestead is an exempt asset except in unusual situations. If a spouse living in the house, it is always exempt. Now under MERP, there are exemptions to recovery and expenses allowed to off-set recovery. What they are and how they have to be applied for is different for each state and very much dependent on state death laws. But the key to the exemptions and expenses is that they HAVE TO BE FILED FOR TO MERP and within the very short specific time-frame that MERP requires.
If you don't, then the state can place a lein or a claim on the property. So any sale or transfer of the house will have to have the MERP claim or lien "lifted" before a sale or proper transfer can be done. State doesn't want the house but state wants proceed$$'s from the sale or value of the home to recoup Medicaid payments.
The states have been able to do some sort of recovery since the 1990's. BUT rarely was there anything definitive done till recently. In the early 2000's, the fed's required the states that in order for them (fed) to do the Medicaid matching, they (state's) would have to come up with a recovery plan. As each states Medicaid program is administered by each state differently, how MERP is done depends on your state laws for probate, death & property rights. The states grandfathered all existing Medicaid recipients too so if you were on Medicaid before 2005 or 2006 (depends on state) then there would be NO MERP done as the rules had changed.
Kashi - this last sentence is important for your family to know and look into.
It's a lot to wade through and really it's my thought that most of us need an elder law attorney to make this happen correctly. Long term planning is the key but most family & their elderly just don't. It is my experience that if they live long enough, & unless are generationally wealthy, they will run out of $$ & need Medicaid.
kashi - the ability to "transfer" a house without Medicaid finding out doesn't happen very often. All real property ownership is recorded in the state's database and is just a few keystrokes for the Medicaid caseworker to find out to the penny what stuff sold for.( I don't know if all states are doing this but we had to do a separate TIN paperwork for property we bought a couple of years ago.) So all that data is there, state will find out, therefore Medicaid will find out and a transfer penalty done on the Medicaid recipient. Now how that get's enforced is a whole other issue….
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