Renting out parents home when they are in care covered by Medicaid. What are the legal/financial pitfalls if any? - AgingCare.com

Renting out parents home when they are in care covered by Medicaid. What are the legal/financial pitfalls if any?

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My folks are still in their home but I'm looking ahead. They have funds to pay for facility care for 3 maybe 4 years depending on the many variables. Once they are in a facility I would like to rent the house to a nephew rather than letting it go to rot and ruin. Would this be advisable or more hassle than it's worth in dealing with medicaid issues?

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Mallory. Regarding your post about keeping the home and ripping of the taxpayers for medicaid funds, no where have I stated that this was my intention. I posted the question to get advice on how to deal with the property while my folks are in care. my parents will be on private pay, then possibly medicaid if they live long enough, then medicaid would be reimbursed as per state law.

If your implying that I'm looking for some kind of profit, I strongly resent your inference.
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what about having him be the caretaker of property ?? rent in exchange for up keep and security detail ??
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Yes do consult an elder law attorney. It is not a good policy to leave a house abandoned(Insurance companies frown upon that. They could cancel or increase rates based on libility ) As others have said , renting out the property presents its own particular set of issues! Selling it would seem best, but research a "trust" via attorney.
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Pardon me, correction "to both live in AL and have MEDICAID pay for it"...so easy to make a slip on those two, and they are so different.
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In Minnesota there is no way for two parents who own a home to both live in AL and have medicare pay for it. Also, gifting a home or property has to be done (and over with) 5 years before the Medicaid application is made. Finally, many nursing homes in Minneapolis do not accept Medicaid and relocate residents once the private pay runs out.
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Mallory, I thank you for reminding me of that fact and I agree. Funny it is my liberal sister who is so adamant about holding on to it, but I plan to move forward.
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My brother is an estate attorney in Sacramento.
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I know some people strongly believe in their right to have mom's home....but there is also a responsibility for everyone to pay their own way. There is no free lunch. When you "keep " mom's home, you are shifting her costs onto the taxpayers. This is absolutely the truth, and if you proceed to "keep" mom's house you are really just forcing me to pay for mom. It might be a really clever trick whereby you benefit (hundreds of thousands of dollars in most cases) but most people really are appalled at having to pay out for those who HAD assets. Stop for a moment and THINK-- is this a sustainable tactic? Isn't it just kicking the can down the road? Very difficult to justify this tactic on any ethical or moral grounds.
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Again, thank all of you so much for the advice. I drove 8 hours today, am in a motel room near Columbus Ohio, and have about 4 hours drive tomorrow to get to the homeland in WV. Now I just have to figure out how to develope all this into a disscusion that Mom will understand and not set off he elder alarm system!
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It might depend on what state you are in. In Florida, the residence is protected. Medicaid will pay even though there is still a house. You keep the house in the event the person moves back home. My moms elder attorney told me that if I sold the house and the proceeds were used to pay for moms care, I could be sued by sibling beneficiaries who would have inherited the house when mom dies. Meanwhile the house deteriorates and has upkeep costs. I am getting another opinion as I would like to sell it as it is for moms care. For normal families this could be discussed, but there are two sibling beneficiaries who would cause trouble.
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