My mom lives alone and is almost done paying off her home. She recently had a bad seizure that left her unable to walk and have limited mobility. If she goes into a long term nursing home, and applies for Medicaid to pay 100% would I be able to re-finance my mom's home under my name and sell the home to save for my mom's future? I would need to sell her home because she has no life insurance.

The house should be sold to pay for her care. Life insurance is for you, not her. Why should the taxpayers pay for her care so you can get an inheritance?
Helpful Answer (4)
Reply to Isthisrealyreal

Mum's assets must be used to pay for her care. She can sell her house and use the proceeds to pay for care. Or she can apply for Medicaid and if she is approved it will pay for her care, but will take most her income, Pensions SS etc. Then when she dies her house will have to be sold for medicaid recovery.

Mum's funds will not be available for covering insurance property taxes, maintenance etc on her house.

If you have POA and can sell her house now, you can pay for her funeral expenses, stock her up with new easy to wear clothing, toiletries etc. But you cannot shield her assets to avoid paying for care.
Helpful Answer (3)
Reply to Tothill

That's always been my issue too with people who put their parents assets in a trust and then parents qualify for Medicaid for nursing home. I personally know several people who did this and they were able to inherit all of their parents wealth (million) while the taxpayers paid for the nursing home and they brag about it!! Don't understand why this is even allowable but it is. Of course, it has to be set up correctly by a lawyer and 5 years prior to applying for assistance..but still.
Helpful Answer (3)
Reply to Kashi60

Medicaid does not pay 100% of the cost. Any monthly income Mom has like Social Security and pension will go towards the cost of her care with Medicaid paying their share. You will need to spend down any assets she has to the Medicaid cap, in my state thats 2k. So there will be no money to keep the house up.

You can "buy" Moms house at Market Value. That way her mortgage will be paid off and the proceeds will go for her care. If she has a car, that too will need to be sold at Market Value. Medicaid has very strict rules and a 5 year look back.
Helpful Answer (1)
Reply to JoAnn29

I agree totally with Kashi60. Houses should be sold and all assets used to pay for care. These Medicaid rules for trusts are why we don’t have Medicaid beds at our nursing home. We have had heard more than a few people over the years talking about their parents getting Medicaid and still getting an inheritance or keeping the family home. Medicaid should only be used by those persons who have a legitimate need.
Helpful Answer (1)
Reply to Bridger46164

It is best to sell now at market value, before the house depreciates. Keep good records and spend the proceeds on her care until she is eligable for Medicaid. You can deduct legal fees and pay off the mortgage. If she passes before everything is spent down, then she will leave an estate. If you put her on Medicaid first, when she passes, a lein will be in the house. If you have an interest in keeping it, you will still have to pay at fair market value. It will depend if you want to do the work up front or pick up the pieces later. There is no need to refinance just to sell it. That is if you want to be her POA
Helpful Answer (0)
Reply to MACinCT
JoAnn29 Sep 12, 2020
If you sell a house after the person dies, it does not need to be sold at Market Value unless the Medicaid lean is higher than the house is worth. As long as the Medicaid lean can be satisfied, then you can sell the house for whatever you want. With me, I sold Moms house for 40k. She was only on Medicaid 3 months so 6k. I was able to payoff taxes and the Medicaid lean with 10k left over.
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