How can buying property for elderly parents affect their Medicaid?

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My husband and I wish to purchase a property for his parents close to us and medical care. The association does not allow the condos to be rented, but immediate family 55+ can live there.


The association is alright with my husband and I paying HOA, utilities, taxes, etc, as the property is in our name. My in-laws wish to pay us for the monthly cost of the loan.


I don't know if this must be considered rent as it is meant to cover just their expenses? We are not trying to make a profit on the property.


We do not want to do anything that would cause future hassles with DHHS/Medicaid should they need more advanced care.

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Thank you, I do realize we can gift 14k per year. But if we are not allowed to charge rent, what is the 'gift' for? Does 'gift' need a designated purpose?






What if there is no rent/lease agreement? Attorney is adamant there is one in place, even if no funds are collected?

No expenses / improvements can likely be used for tax purposes either?

The association's attorney and ours are both at same legal firm, which also has elder care/family attorney's. Our attorney is Business Law, Commercial Litigation and Estate Planning, theirs is Municipal and Administrative Law, Litigation, Zoning and Planning
Eminent Domain and Real Estate Law.
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TJ , I'm sure your real estate attorney means well. But you need an eldercare attorney. "Gifting" of 14k per year is an IRS reg. It has zero to do with DHHS and Medi cal eligibility. 

You need to get a Medicaid savvy certified eldercare attorney to get this for you so that your parents remain eligible for assistance.
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We are in touch with an estate attorney.

We are also open to 'gifting rent' to them as I do not think they can afford to pay rent. As I understand it, 14,000 per parent per child is allowed. Fair market valuerent would not be that high for tax purposes.

If we are not charging rent, what happens then to Medicaid look back period.
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tjcarst, if your in-laws are paying you a monthly fee, then it would be considered "rent", thus they would need to have a Lease. A Lease will be helpful for any future Medicaid financial look backs. That way Medicaid will know that your in-laws weren't "gifting" you money every month.

I would highly recommend that you touch base with an Elder Law Attorney who is familiar with Medicaid laws and regulations regarding this situation. Each State is different.
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