Is my Mom required to keep home owners insurance on her house?

I think you are just like most people in this situation, we're not looking for a payday or a way to scam medicaid, just trying to care for elders and abide by the regs.

After talking to friends in similar situations and reading all the info on this thread (amazing knowledge shared here BTW) the sad fact is that it's difficult, not impossible, to sell or rent a vacant house without jumping through all the hoops. Most folks I talk to do little or no upkeep, cancel utilities and HOI. I know of no laws requiring HOI to be maintained unless there's a mortgage and the lender requires it.

I'm in Mi but my folks are in WV. I'm trying to ease them into care and out if the house. When that happens I'll close the place up, disconnect the utilities, cancel the insurance and haveva nephew mow the grass and keep an eye on the place.

I'm not interested in paying a financial advisor or attorney fees to try and come out ahead somehow on a crappy little house that will be a shove down when the estate is sold.

Real estate questions aside, I just wanted to comment about how your dealing with your mothers demise. I'm impressed with the compassionate and common sense way you are handling this tough time. Most of us will be facing the issue of how much bad news to share with elders. I think you must be a pretty good son. Thanks for your comments.

Just curious ... why are you holding on to the house until she passes? Upkeep on a house is expensive.

I used to work for legal services in WV. I suggest that you contact the local area agency on aging and talk to someone better versed in the state dhhs laws. There are also ombudsmen in nursing homes that can help you find where to get the answers - if they can't answer them for you.

Thanks for all the opinions, suggestions, and information. I've called our DHHR for answers I hoped for on the tax and HOI questions, but so far all I got was a voice mail and no call back, yet. In this situation it's only me, my one surviving brother, and our mom. I/we, had another brother that lived in the house with mom before and after she went to the NH. She went into the NH in April of 2014. He lived in the house alone after that, until he died in April of this year.

I have a POA for my mom. I've taken care of mom's house, mowing, etc. I paid for her utilities, real estate taxes, and HOI, up until now using from the money she was allowed to have, $2,000, before the medicaid kicked in. She still has about $1,200 or so of that $2,000 in her joint checking account that I'm on too. I've only used money from that account for those costs, care for her or the house. But because the house has been empty since my older brother passed, and I was told by the DHHR from the get go that I CAN'T SELL OR RENT THE HOUSE, I recently stopped all the utilities. No one lives in the house, or will. Because of me being told by the DHHR if I put the house up for sell, or rent, she would lose the medicaid benefits that pays for her NH expenses by medicaid. Me or my surviving brother don't use or take any of her money, except for her or the house. Or do we expect or want a thing that is hers and will be her estate that's sold and used for her past and future expenses. I'm just trying to manage her affairs the best I can within the rules and guidelines. If I just knew what they all are it would help me.

As I said, my brother and I want nothing, and know we won't get a penny from mom's estate. Her house and total estate won't pay for all her expenses paid by medicaid. The house has a market value of $60,000, maybe. Surely much less than $100,000. Just my guess. It's not trashy, and in decent condition. Just old, not a modern laid out floor plan, a nice size lot, and nice separate large block garage. The heat is a almost new central gas unit. But a old central A/C. As I mentioned, I've mowed all year, or paid for it to be done at times when I was away on trips, etc. And had the utilities stopped because of her dwindling funds. Yes, because we have cold freezing winters I will go there soon and winterize the house. Draining the water lines as best I can, and put antifreeze in the drain lines to prevent freezing and bursting lines.

As mentioned earlier, my brother and I know when she passes all her estate will be sold and the proceeds taken by the government because of her expenses exceeds the value for the estate. We just need to know do we HAVE TO continue the HOI and paying real estate taxes, even after her personal funds are gone? We, my brother and I, don't want to buy the house. Neither of us has the money to do that. But we don't want to use our money to pay for the house expenses either, if we don't have to. The way we see it, we don't get it after she passes, or anything of her estate. So why should we pay for the upkeep on it for the government? I've keep the outside looking decent, by mowing, etc., since our older brother passed. Why should I be expected to do more?

My brother and I excepted the fact before we had to have mom put in the NH, that we'd never get anything from our old home place. Our parents estate. We know that and have just moved on from that thought in our minds. But at the same time, I know I have to do whatever the rules are set by the government. State and/or federal. I guess as my wife said to me yesterday, maybe I need to spend some of my own money and get advice from a lawyer? Especially since it seems I'm not getting the answers from the DHHR. Plus I don't know where else to get the true facts on the guidelines here in WV. I'm not in this to use her money, or take what belongs to the state or federal government. I just want to take care of our mom and her affairs as best I can. Do wants right, and legal.

Thanks to all for your information, etc. I appreciate it very much.

Freqflyer - the bigger issue with a traditional homeowners policy is that it requires the homeowner to live in the house for the policy to be valid. Some older policies could have extended away allowed but most do not. They would need instead a Vacant Dwelling policy, which is essentially a fire policy. It will cover contents as an rider & there are riders for houses on the market as well. The Allstates, State Farms really don't underwrite VDP's. It will be a speciality carrier and they can be choosy. Minimum seems to be 100k value and done in100k increments for 6 mo period. The VDP I found were all 3 X's the cost of the old homeowners. I needed my Letters Testamentary to get the policy to be "estate of" also.

Insurance co if they find out that the owner has moved, or is not a true owner of the property (like its via a Quit claim), or policy in the DPOAs name...they could invalidate the policy & not honor a claim. Not pretty.

Don't have any easy answeres for you but thought I'd post and get you question back in the running. Hopefully some more knowledable people will respond. Had to help out a fellow Hillbilly! Looked at your profile, I grew up a few miles from you.

As for there being some money in my mother's checking account, in WV you're allowed to have up to $2,000 when applying for medicaid. My mom still has some of that after spending for clothing, etc., since she's been in the NH for the past 18 months. Yes, the DHHR keeps tabs on her bank account to make sure it never decides the allowed $2,000. I used her account to pay for taxes on the house and homeowners insurance, up to now. I called her DHHR case worker today but I just got the voice mail and no call back yet. I am going to ask for answers for the insurance and real estate tax expenses. I'll reply here with answers when I get them.
Thanks for all your answers and suggestions, there are very much appreciated.

To add to my answers to the above questions, in WV we can't sell the house while my mother is still living. If I do that the market value of the house is considered like money she has, and she'd lose the medicaid benefits. Also, the house can't be rented. The rent money would be treated like income. As I mentioned before, can't have but up to $2,000 total in cash. So selling the house, that's like having that much cash. Same for the rent money. If you have a trusted relative, for example, to live in the house rent free, and pay their utilities and keep the house up, but no money exchanged, fine. We had that with my older brother until this past spring. But he died and that ended that. It's hard to find a trusted individual to live in a house in this situation. Knowing when my mother passes, and no idea when that could happen of course, they'd have to move out right away. Keyword, trusted.

loghut and windy, I would read and re-read what Igloo had to say. She knows what she is talking about. Personally under the situation being discussed here, with no one wanting the house and the equity all going to MERP in the end, I would put the house on the market and have any equity applied toward healthcare for my parent. Then she could reapply for Medicaid after any money resulting from the sale was spent on her care.