Can Mom quit claim on the house to Dad so Medicaid doesn't make a recovery? - AgingCare.com

Can Mom quit claim on the house to Dad so Medicaid doesn't make a recovery?

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They are joint owners and it is my understanding that spousal transfers are okay in Colorado. Dad still lives in the house. Mom's on Medicaid in nursing home.

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Cherie, Medicaid will not allow what he has done. They will simply impose a penalty, meaning he will have to give it back to pay for her care. Should he refuse, the nursing home will sue him and win, plus legal costs.
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Thank you for your response. I just wanted to clarify things a bit to assist you in your question. Back in 2003 I was appointed the POA and Executor of both parents with the conditions that if either parent failed the other parent would be in charge or if both parents became incapacitated I would be responsible. It is my understanding from conversation held during the meeting at the NH that a quit claims deed was made within the last 60-90 days to have my mother quit claim their home/estate to my father. When I questioned this my father informed me that their home and estate was now solely in his name and my mother would only be allowed to keep $2,000,00. I was also told that their joint checking account still exists with only $500.00 in that account and another checking account was opened with my fathers name on it. I believe this was done because I brought it to his attention at a meeting held at his attorney's office that I was legally able to take money from their joint checking to purchase things for my mother and this did not go well at that point he told his attorney that he wanted to change everything and take me off completely and his attorney informed him that he could not change this where it concerned my mother. (I bought many things for my Mom because she had nothing at the NH I did not request compensation nor would I, I just wanted my father to be aware of this contingency). I am confused as to how my mother's property be legally quit claimed to my father since she is still living and unfortunatly is mentally unable to make this decision let alone sign her name. Sadly my Mom doesn't know anyone anymore. I was also informed
that my fathers son from a previous marriage was now my fathers POA. It appears that my father is allowing his son to assist him in the decision making for my mother. Another thing I got from this meeting at the NH is that they are waiting to get my mother's life insurance policy to be signed over to the nursing home and it was requested that they cancelled her current health insurance policy through United Health Care. I am not sure if this is true or not but I was informed by others (with the thought that my father didn't want to lose his home or other property) that my Mom would have to be admitted into the hospital for three
days and during this time there would be an assessment on her health with the advisement she be admitted to a long term healthy care facility. Once she was admitted to a nursing home in MA (she has been a life long resident in CT) that after 90 days being in the NH another assessment would be made and at this point she would be considered a MA resident and would then be ward of the state of MA and at this point everything would be covered under Medicare. This all just sounds so wrong. Why should the state of MA be responsible for her Medicare and her husband keeps all their assets.
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Cherie, it depends on when your Mom had quit claimed her half of the house over to your Dad. If it was done within the 5 year look back for Medicaid, Medicaid would put a red flag that file. If Medicaid feels that this quit claim deed was done to hide Mom's assets, then Medicaid could place a lien on half of the equity in the house. Your Dad can remain in the house, but once he passes, the house needs to be sold and Medicaid paid back. I suggest you contact your State's Medicaid office to verify this as rules and programs are always changing.

Are you saying that you were Executor of your Mom's estate and were her Power of Attorney? If yes, then only your Mom can authorize a change, and since she has dementia and is living in a nursing home, no one can change her legal documents.

Now if you were Executor of your Dad's estate and was his POA, then yes, if Dad is of clear mind he can make as many changes as he want to his legal papers.
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My mom was living in CT prior to being placed into a NH Long term facility in MA she is not able to sign any documents because she has dementia. I recently attended a meeting at the NH and during a conversation it was stated that my father had his home quit claimed from my mother to him entirely I questioned if this was legal and was told it was. I was also the Exeutor of the estate and POA but was told that my father had me removed and had his son put into this position. Is any of this legal?
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Same boat here, My FIL'S monies and investments are his, to pay for his future expenditures, healthcare, Nursing Care, Senoir housing. We could have easily siphoned off over a quarter million dollars, when he first moved in with us 13 years ago, cashing in his investments, gjfting 12 grand a year to each of us and our 4 kids, but we didn't! My own parents raised 6 kids on one income, paid off and then sold their home for a tidy profit, 40 years later, to help fund their retirement, lived comfortable yet modestly, fortunately did not have to go into Long Term Care, because all 6 of us cared for them until they died, but not every family is like mine and able to do that. In the end, there was exactly 7 thousand dollars left to each of us, in an inheritance, as it was so important to them that they leave us each Something. Considering the soaring costs of Nursing home care, that was cutting it close, but heck, we didn't want their money, we wanted them healthy and whole, but it is what it is. Not every situation works out that way. But you shouldn't be allowed to just hide away all of your parents money, and expect the government to foot the bill!
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Rainmom, same with my parents, both weren't born with silver spoons. If my Dad wanted to go to college, he had to work his way through... and he did... when he graduated he had no college debt.

When I took over taking care of my parents finances, I was amazed how much money they had saved for "rainy days".... my gosh, all that on my Dad's income which by today's standards was pretty low... they lived way below their means.... they never kept up with the Jones.... they paid off their house pretty quickly and never touched the equity. That equity is now paying for Dad's memory care for years to come.

As a taxpayer I am more than happy to help those who fall onto hard times. But it irks me those who shopped like there is no tomorrow thus had very little in savings... had a brother-in-law who filed bankruptcy twice because he and wife couldn't stop shopping or going on trips.
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Judee, if you post a new question instead of adding to an older one, sometimes you get more prompt answers. Re-read the post from Igloo from Feb 2016 - if you and your sister filed on the Quit Claim Deed with the courthouse and have been personally paying all expenses for the property and have copies of receipts tracking the expenses, you can make the argument with Medicaid. If you left the property in Dad's name to get property tax benefits and didn't change utility bills, etc. over the past 5 years, it will be looked at during the Medicaid review process. Get an elder lawyer familiar with Medicaid to look at the paper trail to advise you. In this age of computers, property ownership is in the computer systems and easily looked up by the state in tax records, etc. Get some legal advice from someone in your state. If you didn't register the deed to take advantage of property tax benefits or homestead, that's a problem.
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RainMom, thanks for having the courage to be frank about people trying to shield assets yet feed at the public trough. I agree completely. I find it reprehensible.

There are people legitimately in need who have no assets to shield; these are the people who need Medicaid assistance, not those trying to sequester their assets yet still suck off public funds.
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Everybody likes to complain about how awful nursing homes are. Maybe they wouldn't be as bad if people quit trying to screw the system by hiding assets and refusing to pay what they can for their own care. My brothers and I would be inheriting a small fortune had my mother not paid out of pocket for her Assisted Living, her nursing home and her caregivers. My mother wasn't born with a silver spoon in her mouth - in fact she came from nothing but was able to save a tidy sum for her retirement and care. I have no problem at all with Medicaid paying for individuals who were not able to do the same - life can deal out some crappy hands and many are unable to do it - and that's what Medicaid is for and everybody deserves to receive care in their old age. But this purposeful hiding of assets so adult children can get a bigger inheritance at the expense of everyone who honestly pays into the system really chaps my hide.
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As a taxpayer, I would like to say that your mom is on Medicaid - at taxpayer expense. Assets need to be used for her care. I'm not a fan of paying higher taxes so your mom can get Medicaid and then you guys get a windfall. Sorry - think about what you are trying to do. It is cheating & unfair.
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