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PMBB - you & your daughter need to understand the different ways that a NH stay can be paid. About 30% is private pay (either from your $ or family pays your costs) or by LTC insurance policy; 5-10% of stays are for post hospitalization rehab at the NH which Medicare pays 20 days and then possibly 80% of up to 100 days; and the other 60-65% are Medicaid paid NH stays. This site has some really good articles that explain how Medicaid & Medicare are different yet work together is paying for care. It can be very confusing........!!

For Medicaid, you have to be "at need" both medically and financially at whatever standards your state has for its Medicaid program. Although Medicaid is a joint federal & state program, it is administered uniquely by each state. For NH medicaid, "Medically" means needing skilled nursing care." Financially" means you are basically impoverished within whatever monthly income your state has established and with a maximum of 2K of non-exempt assets.

In general, The exempt assets are a home if it is your homestead & primary residence; a car; a preneed funeral policy; and some types of life insurance policies. But upon your death, the exempt assets become nonexempt and are subject to an attempt of recovery of the costs paid for your care by Medicaid. This is MERP and all states must have a merp recovery program in place. Now whether or not recovery is done or feasible depends on your states laws as well as exemptions, exclusions or other determinations set for MERP.

If your share is only 10%, then recovery is limited to 10% of the value in theory. If the house is low value - like under 100k - I'd bet a recovery won't be done as the cost effectiveness to go after recovery for under 10k isn't effective. But if the house is worth above that, a recovery probably will be attempted. The bad part is that it's a claim or a lien that gets attached to the property and will pose issues if your daughter wants to sell the house or get any equity lending on the house. Also the MERP amount can have interest & fees attached to the initial figure.

For a 10% interest, personally if it were me, I'd try to get daughter to "buy" your 10% and then you use those funds toward your spend-down towards medicaid. So yiu apply fir medicaid without any house ownership. To set value on the house, you can get the house appraised to come up with a valid & legal figure. If you all think the house is worth less than the tax assessor value, getting a conservative appraisal is a win-win for all, as it's gets the 10% as low as possible and provides documentation to get the tax value lowered by the assessor so less taxes to pay and provides a valid # if Medicaid ever challenges the amount your daughter paid.

Having her buy your 10% now just gets rid of having any MERP zombies coming up years from now on the property and keeping possibly years of documentation on the costs of the house by each of your share. Another reason to buy your 10% is that she or others in the family will need to pay your 10% of costs once you go onto Medicaid. Often families aren't aware of the required copay or SOC ( share of cost) by Medicaid. All your monthly income will have to be paid to the NH as your SOC. all you will have is a modest $ 35 -115 a month personal needs allowance. There will never ever be any of your income to pay on any house costs realistically ever again. Someone will need to pay all house costs and then also track and keep documentation on all house costs at the 90/10 ratio. To me, it's a lot of work for just 10%.

Yeah its alot to think about. A good elder law attorney will know how to get all this done so all good & within medicaid rules for any blowback from Medicaid.
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