My dad used proceeds from the sale of a home to purchase a house in TX. I co-signed for a loan. How would this asset be treated by MERP?


He didn't have enough to cover the cost of the home.Since his funds wouldn't cover the cost of the home, I co-signed for a loan on the property.

We are now looking for long-term care for him as we are no longer able to provide the care he needs in our home. When looking at facilities, we are told that a number of things regarding his house and finances.

Regarding the house, one set of social workers are telling us that there is an exception to MERP that states that when two people jointly own a home (in this case my dad and me), AND only one of them require support, then MERP won't go after that as an asset. However another group of social workers is stating that MERP will absolutely go after it. There is around $70K in equity in the home.

So my question is: How would this asset be recovered/treated/considered, by MERP?

Outside of that, he has about $15K in cash value from a life insurance policy. However, I don't care about this policy, only about the house since we both have equity in it. Granted, he has more (he put about $50K down and then we used around $20K for repairs).

Any recommendations?

Thanks much - Joe



I would not take what the Social Workers have told you. Medicaid is complicated. Each case has to be looked at differently. Are both of you on the deed? With Medicaid there is a spend down period. In NJ ur only allowed $2000 in ur account. Dads SS and pension will go for his care. He will be able to keep the house but not pay for upkeep, utilities or taxes. Unless ur willing to do this, then it will have to be sold at Market Value. The problem u have is can you get your money back. This isca question for Medicaid. If their answer complicates things then seek out a lawyer that knows Medicaid. The insurance policy. You can cash it in and prepay Dads funeral expenses. In my case, Moms money was put in a trust by the funeral home. I was told Medicaid would except anything to do with a funeral. That included flowers and the luncheon. Any remaining Money goes to Medicaid. There's more to it but I would start with Medicaid concerning my questions. By the way, I did have a lawyer because of the house. Medicaid allowed me to use Moms money.
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Reply to JoAnn29

I would second the advise on elder attorney - you may be missing something attorney is the way to go. could help you avoid any mistakes. the cost for one is a lot - but gives me security knowing im doing right.(money well spent in my opinion)
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Reply to wally003

Thanks for the response. He only lived with us for a period of one year. I suppose it depends on how you define "medically necessary care". We moved him in with us because he wasn't taking his medication, bathing, or taking care of himself.
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Reply to Nerdy1

Did you provide medically necessary care for him for a period of two years or more? His doc would have to back that up. If so, that may exempt any sort of Medicaid recovery. Get with an elder law attorney well versed in Medicaid qualifying.
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Reply to gladimhere