We recently placed my grandfather in a nursing home (Kansas). I am close with my grandfather and have a lot of good memories with him and my grandmother (deceased) from spending time with them in their home. I would like to buy my grandfather's home from him. The nursing home said doing so might cause problems with his Medicaid application. The house is in rural Kansas and is not worth a whole lot. The house was recently appraised at $21,000. I believe this is somewhat high for the area. My grandfather wants me to have the house, but my understanding is that he cannot "gift" it to me. I can afford to pay him $10,000 for it. The nursing home said that this might be an issue with his Medicaid application. If I pay my grandfather $10,000 and he signs over the house, will that cause problems?
Additional note: I don't know if it matters, but my father has completed all of the paperwork that allows him to oversee the estate. My grandfather, father, and I are all close. My grandfather has told my father that it is okay to sell the house to me.
I just want to keep the house in the family, but cannot afford the appraised value. Is there a problem if I pay less than the appraised value for the house?
Any thoughts/comments/suggestions will be greatly appreciated. Thank you for your time.