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That’s really generous of your dad, but you’re right to pause and ask about Medicaid before moving forward. I’ve heard of situations where large expenses like home construction can be seen as ‘gifting’ or a transfer of assets, which might affect eligibility later. An elder law attorney or Medicaid planner could guide you on how to structure it (sometimes it has to be documented as a loan, or the house has to be owned a certain way). Better to get clear advice up front so your parents don’t run into trouble down the road.
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Reply to TenderStrength5
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Favoritefille: Go to Medicaid.gov.
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Reply to Llamalover47
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I know you asked about Medicaid, but your brother also needs to consider the living situation. We had someone on here very recently whose father paid for multigenerational living construction but living with dad on the other side of the door became untenable very quickly.

You didn’t say how your parents’ health is currently, but elderly people do continue to decline physically and sometimes mentally. Just something to consider before brother decides to live with parents. I wish you all the best.
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Reply to LilyLavalle
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Paying for Home Accessibility Construction – Medicaid Considerations
Key points to consider:
1. If Dad Pays Contractors Directly
• Safest option: Dad pays the contractor(s) directly for ramps, widened doors, bathroom modifications, etc.
• This is not considered income or a gift to your brother, since no money is transferred directly to him.
• Your brother benefits only from the improved accessibility of the home.
2. If Dad Gives Money to Your Brother
• Cash given directly to your brother could be treated by Medicaid as unearned income in the month received.
• If the money is not spent in that same month, it may be counted as an asset the following month.
• This could temporarily affect Medicaid eligibility.
3. Estate Recovery Considerations
• After the your brother’s death, Medicaid may attempt estate recovery from his estate (often the home).
• Home improvements can increase the property’s value, which may increase the potential Medicaid recovery amount.
• If parents move in, avoid adding them to the property title without legal advice, as this may create Medicaid or inheritance issues.
4. Recommendations
• The safer route is for Dad to pay contractors directly, rather than giving cash.
• Keep receipts and documentation showing the payments were for accessibility-related improvements.
• If ownership, title, or long-term living arrangements are being considered, consult with a Medicaid planning attorney before making changes.
• This ensures the family’s intentions are protected and does not cause unintended Medicaid problems.

This is general information and not legal advice. Your family should consult with a Medicaid planning attorney for guidance specific to your situation.
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Reply to HaveYourBack
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Aside from Medicaid implications, the multigenerational living situation may not work out. In that case, dad and mom may want their money back, and would brother repay them?

Nightmare! Family relationships damaged! Advise them not to do this. Dad and mom should move into Assisted Living where they won’t be a burden to their children.
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Reply to Fawnby
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In Medicaids sees this is gifting. The reason, because your brother will reap the rewards if he ever sells the house. We put a shower into my mothers bathroom when she moved in with us. We paid for it 7k. It would have been a red flag to Medicaid if that had come out of Moms acct and there would be penalties.
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Reply to JoAnn29
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Yes, Medicaid implications for CERTAIN if this isn't legally done.
If there is a contract to move into this home, then it's likely legal to pay shared living expenses and repairs for safety. But that must be done by legal contract so it doesn't look like gifting of repairs and renovations to son's home.

They should go to an elder law attorney who will draw up a contract that is protective.
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Reply to AlvaDeer
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