Gifting home to a child after taking care of a parent for 2 years and avoiding Medicaid lein.

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In April 2018 my wife and I will have taken care of her father for 2 years. According to Medicaid father can gift house to daughter and house will not be considered part of his estate if he goes into a nursing home after that. My question is this. We really need a bigger house to live in. Can father buy bigger house now with his own money or does new house start the 2 year period again?

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Eligibility approval for JohnHancock policy may not dovetail to eligibility for how your Fils state Medicaid does LTC eligibility. Really to me unless you have current expertise for SCHHS policies for “duals” (Medicare & Medicaid), you need an experienced elder law atty. I’d suggest one that is NAELA.
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he was already approved to receive his long term care benefits from John Hancock 3 years ago. we established ourselves here in SC already paying taxes and have our driver's licenses. we already are seeing an elder care attorney. my specific question was about buying a bigger house and still be medicaid compliant. it appears we have to stay in this house until he goes into a nursing home. thanks for all the replies.
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Well then, there’s your answer. But I wouldn’t bank on it. You’ll have to prove you physically lived there for two years- mail delivered there, etc.

I’m thinking it’s not going to be that easy. You’ll have to provide documentation from his doctor stating he needed care & specifically what kind he needed. 

He was receiving 24/7 care already? What level of care was provided? On a doctor’s order? Medicaid may want to know that. 

I wouldn’t proceed until I spoke with an attorney familiar with Medicare law in your state to avoid any surprises. You have a lot to lose if Medicaid requirements are not met. It’ll be worth the money for the consult. 
Sounds like you are going to sell the house to buy a bigger one. 
Good luck!
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medicaid site. transferring the home by gift. "In some cases, the transfer of title to a home does not incur a Medicaid penalty. Medicaid recipients can transfer sole ownership of their homes to their spouses without penalty. The spouse is then free to do as he or she wishes with the property without adversely affecting provision of Medicaid long-term care services to the recipient. Recipients can also transfer their homes without penalty to: a child who is under age 21 or blind or permanently disabled (at any age); a sibling who has an equity interest in the home and was residing there for at least 1 year prior to the applicant's need for long-term care; or a child of any age who was residing in the home at least 2 years prior to the applicant’s need for long-term care and who provided care that permitted the applicant to reside at home rather than in an institution." last line says it all.
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I believe that Medicaid will treat the house the adult child LIVED in with the parent for at least 2 years while providing livein care is treated the same way the house would be for a community spouse....that is...a lien is placed on it, but not exercised until the adult child leaves that home.

Check with an attorney who specializes in Medicaid rules in your State
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What I am getting here is because Medicaid will allow FIL to turn house over to ur wife, your wondering if FIL can sell said house to buy a bigger one and then turn the larger one over to you? Not sure if this is legal. I am surprised that Medicaid will allow the house to be turned over to ur wife. This is FILs asset and Medicaid will want whatever money they put out for his care. My cousin is allowed to live in his Mom's house because he is disabled but if he sells the house he has to pay the lean of 23k. It may be a good idea to run this by Medicaid again.
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FIL was already receiving in home 24 hour care before we moved in to take care of him.
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You need to clearly find out the regulations for Medicaid eligibility AND recovery for your state. MERP / Estate Recovery exemptions & exclusions vary by state due to states different administrative code / laws for property rights, probate, etc. To me it’s something to be done in conjunction with an atty who understands both the application & recovery system.

Although caregiver exemption allowed how it can happen could well be that it must be an after death process. So even though Sonny was Dads live in caregiver (no other full time job) say from 2014-2106 and then dad moved to a NH this year; the caregiver exemption and property transfer filing has to wait till Dad dies. If dad dies in 2020, that’s 3years of your paying all property costs and keeping detailed documentation on all as property remains in his name and his homestead. Also you need to find out what his state requires as documentation for medical necessity for caregiving in order for caregiver exemption to be allowed. Like for TX caregiver exemption in the NOI (notice of intent) and questionnaire sent by outside contractor for MERP, requires a signed letter with state licensing info from the Medicaid recepients MD or SW as to what the medical necessity was and included ICD codes. Medical necessity that clearly showed was needed and kept him out of skilled nursing care in a facility. Just aging, being iffy on his ADLs, needing medication management may not be enough to show caregiving equivalent to skilled care. Also getting documentation years later could be simple or problematic.

Dad buying a bigger house now?? I’d bet Medicaid will view that asset transfer with a jaded eye. Are you aware Medicaid has strict property value limits for eligibility (that vary by state).
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Medicaid has a five year look back. You can gift anything away but this will cause Medicaid to be denied or penalty period. Where did you get the 2 years ? Medicaid has very specific rules on money, property transfers. A good elder attorney would easily clarify this for you.
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You really need to consult with an elder care attorney that is familiar with the Medicaid rules in your state. You want to make sure that you have all the documentation in place about the level of care required, proof of residence in the home and that you provided the care certified by doctor, etc.
If you want to buy a new house is a wrinkle that you need legal advice for.
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