You won't like my answer, but why would you want to keep an asset instead of selling it to pay the people who take care of your relative? If there is no living spouse, you should sell the assets and pay for the care. Maybe there would not be such an issue with funding medicaid if people would realize that we need to liquidate the relatives assets and pay for the care. It is really only fair to tax payers as well as future generations who need to utilize medicaid.
Also if the property needs to be sold, it must be sold at FMV - fair market value. So no transferring within family at zero or below FMV. Look at the tax assessor statement to see what the county sets for value.
If assessor amount is whack, you need to get the property appraised. I'd suggest you get it inspected first and then that report goes to the appraiser. If there is foundation issues, you might want to get an residential engineers report done as well. All of these 3 need to be done by registered professionals as there will need to be some sort of seal placed on report. Those comps done by Realtors are nice but not "legal". Maybe $ 300 - 700 ea for inspection & appraisal. Residential engineers are more pricey and could take weeks to get scheduled.
All needs to be done transparent & correctly done as property items are filed at the courthouse and will show up…… eventually.
LPomm - the "asset" just what is it? If it's a homestead, Medicaid allows for their home to be an exempt asset for Medicaid. But second homes, land or other non-homestead property are non exempt assets and will keep them ineligible for qualifying for Medicaid. I'm assuming the Medicaid applicant is a widow or widower so no community spouse living at the homestead…..
About the homesteaded exempt property, although it's ok by Medicaid for the NH/AL on Medicaid resident to own it, they will have no/none/zero/nada of their $ anymore to pay on the property. Medicaid requires them to do a co-pay or SOC (share of cost) to the NH/AL each month of all their SS and any other monthly income. All they get is a smallish PNA - personal needs allowance which varies by state from $ 35 - 115.
Reality is that someone within the family will need to pay all costs on the property from day 1 of Medicaid till beyond their death and deal with MERP/estate recovery. IF there is still a mortgage, the amount of $ over time could be significant. Keeping the house could make sense if there is a reason for you to keep the property and you have the wallet possibly for years and don't mind some degree of risk. Based on posts on this site, family end up placing maw's house on the market within 6 - 8 mos as family runs out of nice in co-operating with upkeep or paying their share.
Medicaid asset and income rules vary by state. See an experienced elder law attorney in your state (www.naela.org, the National Academy of Elder Law Attorneys, has an interactive list).
Talk to an Elder Tax attorney they will be the best person for your question. I have seen multiple ways of doing this such as having your mom gift a family member the property and don't forget the requirements are $2000 in monthly assets so it has to be pretty low! Best wishes,
As others have said: You can't have a home and be on Medicaid. So you will have to sell it and use the money for care until you spend down to the amount (usually around $2000) that makes you eligible for Medicaid. OR - and I am not knowledgeable about this - there may be a way to set up a trust. Either way, the best thing to do it to consult the Office of Public Assistance and an attorney.
If assessor amount is whack, you need to get the property appraised. I'd suggest you get it inspected first and then that report goes to the appraiser. If there is foundation issues, you might want to get an residential engineers report done as well. All of these 3 need to be done by registered professionals as there will need to be some sort of seal placed on report. Those comps done by Realtors are nice but not "legal". Maybe $ 300 - 700 ea for inspection & appraisal. Residential engineers are more pricey and could take weeks to get scheduled.
All needs to be done transparent & correctly done as property items are filed at the courthouse and will show up…… eventually.
If it's a homestead, Medicaid allows for their home to be an exempt asset for Medicaid. But second homes, land or other non-homestead property are non exempt assets and will keep them ineligible for qualifying for Medicaid. I'm assuming the Medicaid applicant is a widow or widower so no community spouse living at the homestead…..
About the homesteaded exempt property, although it's ok by Medicaid for the NH/AL on Medicaid resident to own it, they will have no/none/zero/nada of their $ anymore to pay on the property. Medicaid requires them to do a co-pay or SOC (share of cost) to the NH/AL each month of all their SS and any other monthly income. All they get is a smallish PNA - personal needs allowance which varies by state from $ 35 - 115.
Reality is that someone within the family will need to pay all costs on the property from day 1 of Medicaid till beyond their death and deal with MERP/estate recovery. IF there is still a mortgage, the amount of $ over time could be significant. Keeping the house could make sense if there is a reason for you to keep the property and you have the wallet possibly for years and don't mind some degree of risk. Based on posts on this site, family end up placing maw's house on the market within 6 - 8 mos as family runs out of nice in co-operating with upkeep or paying their share.
I have read you question. Most people run the other way,as in, how not to have the home qualify as an asset.
Does anyone else live on/in the property?
What state does the property respond too?
And lastly, are all immediately family members in agreement to this option?
Best wishes,
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