I moved in with my father (93) after he refused to leave his house (I would not do that again) I cut my income by two thirds to care for him and lost my health insurance in the process. He wants to sign his house over to me (I'm his only caregiver) but I'm concerned about losing Medicaid. Do I have any options?

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This is what my mother's Elderly lawyer did for us. The lawyer had my mother draw up a will along with a Quick Deed. Because my mother only has two trucks that are not worth much and a house, by having a Quick Deed there is no reason for probate court. Upon my mothers death the house goes right to me all I have to do is file her death certificate and I will get a new deed in the mail with my name on it. Medicaid can not recover the house if she should ever need Medicaid. You will need a lawyer to draw this up but it could be will worth it. I would see if that is an option.

Just a thought!
Helpful Answer (0)
Reply to Shell38314
thentherewasone May 22, 2019
Thank you, that is helpful and will look into it.
You won’t lose your Medicaid if he signs the house over to you. That is because Medicaid allows you to have a house. The party who would be affected by this, however, is your dad—if he is on Medicaid, he cannot sign over his house. If he needs Medicaid in the next 2-5 years depending on what state you are in, he cannot sign over the house or it will affect his Medicaid eligibility. You don’t need to spend a couple grand on an attorney to create a trust, because Medicaid allows you to have a home.
Helpful Answer (3)
Reply to worriedinCali
Lymie61 May 22, 2019
The caveat to that being that the OP is also living in the house caring for dad so wouldn't that fall under the Medicaid allowance for the house being a relative caregivers prime residence?
Create an irrevocable trust, put the house into it. An irrevocable trust is legally a stand alone person, it's not you, but you will be written as the eventual beneficiary. It's the wealthy family secret to keeping assets away from government, legally, an honorably.
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Reply to Screennamed
Isthisrealyreal May 22, 2019
A trust becomes the owner and the house is protected because you do not own it. It doesn't go through probate either, all provisions are already made to handle any debt and exactly how to deal with the assets that the trust owns and let you use for your lifetime.

It is not tremendously expensive to set up a trust, revocable or irrevocable, especially if you are willing to do the leg work getting everything titled and deeded in the trust name. These buy one package deals are a scam and should be avoided, FWIW.

I think that the 5 year look back still comes into play and anything done during that time is an issue, legal or not.
Why would you lose your medicaid? It's your primary residence right? That's exempt. Now whether that's a good idea or not is another thing since if you are on medicaid, that gives them an asset to recover from. What kind of medicaid is it? Brand new shiny expanded medicaid that's used as health insurance or old fashion medicaid used for long term care? Assets and recovery aren't issues until it's old fashion medicaid with community care or a NH or something like that. Brand new shiny expanded medicaid is based solely on income. Having a house or not doesn't even factor in.
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Reply to needtowashhair

Why does your father want to sign his house over to you rather than leave it to you in his will? (not that that helps the Medicaid issue, I'm just wondering what the advantage would be)

How long have you now been living with your father as his primary caregiver? - I believe that makes a difference in terms of your rights to residency.

Are there any other family members to consider?

Other forum members have a wealth of Medicaid experience and expertise - hold on, I'm sure they won't be long.
Helpful Answer (2)
Reply to Countrymouse
Screennamed May 21, 2019
Medicaid estate recovery happens for 55+, OP can google medicaid estate recovery. Leaving a house in a will equates to inheritance taxes usually. Medicaid + inheritance taxes and probate fees are collectively reasons for trusts. Which is why estate planners utilize irrevocable trusts for real estate to stay within families, trusts keep everything inside trusts outside of probate, too.
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