My father has recently been approved for Medicaid and owns a small condo in Chicago. He doesn't owe much on it but I would like to purchase it from him. I'm having a difficult time finding information on if a relative can purchase a property from someone on Medicaid, and if so, how to determine the purchase price. Spoke to a couple of attorneys that said if they didn't prepare the application docs, they can't help. The nursing home he's in helped us apply. Any insight would be very helpful!

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Thanks everyone! This has been very helpful! Having done the paperwork through the nursing home we saved a ton on legal fees, but now I don’t have an attorney to call with these neuanced questions.
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Reply to HoosierJess

You need to talk to the Medicaid caseworker who handled Dads application. Have the information handy on the house. You will need to prove Market Value. You can hire an assessor for this. You probably will have to pay Market Value for the Condo. The proceeds, less mortgage due, will go to Dads care. Medicare will stop until you spend the proceeds down, then reapply for Medicaid. Make sure to tell the caseworker there is a mortgage.
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Reply to JoAnn29

Go thru a real estate agent and they will help you determine FMV, then when you are purchasing have it appraised. This verifies that the list price is valid and you are not over paying based on the condition and amenities.

You can not just take over payments. As FF has stated, FMV needs to be paid, it is an asset that belongs to Medicaid (taxpayers) for their financial aid to your dad, so he can sell and self pay until he is impoverished or you can keep it (paying all HOA dues, property taxes and maintenance) until he passes then Medicaid will sell and take the profit from sale. This is only fair as taxpayers pay for Medicaid and all the services and aid they offer.
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Reply to Isthisrealyreal

HooiserJess, if you plan to purchase Dad's condo while Dad is on Medicaid two things will happen.

First, the profits from the sale will be noted by Medicaid, thus Dad will be off Medicaid until those profit are used up as "self-pay" at the nursing home. Only Dad can use that money and it has to be for his care.

Second, Medicaid would require that the condo be sold at fair market price. No discounts. It doesn't matter who is purchasing the unit. Your Dad will probably need to hire a licensed Appraiser to determine what is the value of the condo. That price will be the guide.

Did you talk with an "Elder Law Attorney"? They are quite familiar with the ins and outs of Medicaid, and could advise you on what steps to take.

Oh, be sure to keep the Condo HOA fees up-to-date. Since Dad doesn't have liquid cash due to Medicaid, someone in the family will need to pay. If the Condo HOA fees are not paid, the Association can place a lien on the condo.
Helpful Answer (1)
Reply to freqflyer

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