Will Medicaid deduct the 4 years that the house is already deeded to my son? - AgingCare.com

Will Medicaid deduct the 4 years that the house is already deeded to my son?

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My Dad will be going on medicaid soon. His house has been deeded over to my son for 4 years with one year remaining. Will we only have to pay the remaining value of one year?

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Unless one of the transfer exceptions apply (e.g., transfer to a Caregiver Child or disabled child), if your father applies for Medicaid before the 5-year lookback period has expired (i.e., more than 5 years from the date he signed the deed and it was recorded at the local register of deeds) he will be facing a VERY long penalty period! The number of months of such disqualification from receiving Medicaid coverage will be equal to the value of the house on the date of the gift divided by your state's average nursing home cost. Such average costs are published each year by each state; you can call your Medicaid department if you really need to know the figure, but to be safe you may wish to wait until AFTER the expiration of the 5-year lookback period. If you are still unsure, then be sure to consult with an elder law attorney in your state with experience in Medicaid planning to answer this specific question. Better safe than sorry!
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Do not - I repeat do NOT apply for Medicaid until you contact an experienced Elderlaw/Medicaid attorney. The Medicaid laws have changed drastically. It used to be that penalties for gifts (including transfers) were calculated at the date of the transfer whereas they are now calculated at the date you apply for Medicaid. Big difference. Applying too soon could make you ineligible for many more years whereas if you wait out the penalty period, you should be eligible if all other criteria is met. Research this point to see if it applies to your situation and then pay for a consultation with the best Elderlaw attorney you can find. Money well spent!
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I agree with Elfgarden!!!! See an Elder care Atty asap... He/she will also help with medicaid application...
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I went through a medicaid law firm near here to get my mom & dad approved for NH medicaid because they had an out of state piece of property. The retainer was $2,000.00. You can visit with the only lawyer at a medicaid legal firm as the initial consultation but in every case in the DFW area the application process from paying the retainer through to approval is handled only by a bookkeeper/acct. The bookkeeper/accountant is usually not as familiar with medicaid rules as a medicaid caseworker with the state. Once the law firm handles the app & submits to the caseworker it may need more work. All I know is in no cases of ANY med. law firms does a medicaid specialist or lawyer handle the app you have paid 2K retainer for. And there are some cases that do not need the lawyer. It sounds like you could use one but be careful to ask when choosing a firm to handle the app be sure to inquire who will actually be meeting with you, gathering the documents & actually filling out the app. I actually changed firms 3 times before choosing the one that applied & my demand by the 3rd firm was that I be present at the filling out of the actual application.

Another option to educate yourself before meeting with any firm is to call a local office of long term medicaid & ask how to obtain a blank application. Get at least 2 copies of the blank app. Look over it carefully yourself. Make calls for answers about the sections of the app, educate yourself about how YOU would fill it out. Then take in a rough draft you have filled out to a local advocacy office, like DADS in TX or senior source. Anywhere there is a benefits counselor. Sometimes the benefits counselor for free will know more than the lawyer.
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If you "gave" the house to your son at less than market value within the 5 year look-back period, its value will be considered a gift. I don't think there is any prorating based on how long ago it was given.
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The only situation that I know where the house could be transfered without penalty, is if son had been live-in caregiver for dad, it was necessary according to his doctor, and for a minimum period of two years.

I agree with all of the above, see an elder law attorney that specializes in Medicaid planning asap!
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What is the value of the house?

And, I agree with Elfgarden. Seek out the advice of an elder law attorney.
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If you apply for Medicaid now before the 5 years is up, Medicaid will consider the deeeding of the house to your son to be a gift and the value of the house will become a penalty against your father. So if Dad's house is worth $250,000 and the nursing homes in your state cost $5,000 a month your father will not be covered for about 50 months...4 years 2 months and you will have to pay for his care during this time.

If there was any way on God's green earth, that I could keep my father out of a NH for one more year, I would do it.....seek all options and run to see and Elder Law Attorney.

Good Luck and God Bless!
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I cannot agree more with Elfgarden! See an elder care attorney ASAP regarding your circumstances. It will be money well spent and save you much worry and anxiety that you have done the right thing regarding your estates future benefits to your loved ones.
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Gabriel, thanks for your professional opinion on this. It always helps to hear from an expert!
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