Do Medicaid rules permit a person's home to be rented with an "option to buy" when they are deceased? - AgingCare.com

Do Medicaid rules permit a person's home to be rented with an "option to buy" when they are deceased?

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My father who is 93 is in a nursing home and was recently approved for Medicaid. He still owns a condo which is rented. I have POA and make all the financial decisions. The tenant wants to purchase the condo and renovate it but we can't sell because Medicaid would take the sale funds. Can we draw up a lease with option to buy at an agreed upon price at my father's death, which would allow the tenant to renovate now? Is there a rule against leasing a home with option to purchase upon death of the Medicaid recipient?

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I was wondering if it would be easier to sell the condo and apply the proceeds toward your father's care. He could reapply for Medicaid if and when the proceeds ran out. It would take all the guesswork out of the arrangement.
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Yes, get a good elder law attorney that is well versed in "Medicaid Planning". It seems rent would be considered income and could impact his eligibility for Medicaid.
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Won't Medicaid take the sale proceeds in any case? Now or later? Believe me, you need the advice of an elder law attorney. I seem to remember my attorney telling me that Medicaid demands a 6% return on rentals....? That's all I personally remember about it.

Having been a Realtor for a lot of years, your tenant would be a fool to enter into such a contract, in my opinion . . . with the idea that he was going to put many thousands of dollars of renovation into a property he may never be able to own at the price you negotiate now....? But that's me.

But YOU, most assuredly, should run everything past an expert -- and that'd be an elder law attorney...no one else.
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