My father put is home in a Quit Claim life trust in 2009. If I sell the home, will Medicaid get the profit?He's in assisted living. - AgingCare.com

My father put is home in a Quit Claim life trust in 2009. If I sell the home, will Medicaid get the profit?He's in assisted living.

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He's in assisted living.

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Why sell the house?

I’m not familiar with QC Life Trust but if it’s in anyway like a Lady Bird Deed or Enhanced (Benefit) Life Estate Deed, for those, in order for the property to transfer outside of MERP / Medicaid Estate Recovery actions, the owner has to continue to own the property and dies owning it. So property transfers ownership after death. If property sold before death, it’s reported income / asset for Medicaid so they become ineligible for Medicaid till once again impoverished. They start to private pay for the facility. The super sticky would be IF your state Medicaid requires repayment of costs paid to date from the proceeds of the sale.

You need to get clarification from the attorney who did the paperwork as to just exactly what the QCLife Trust exactly is and how any sale or transfer both before & after death deals with current Medicaid eligibility and any MERP/ Estate Recovery.

For Lady Bird deeds, although they sound all terrific, one huge issue for those in a NH & on Medicaid is that Medicaid requires a copay of almost all their monthly income to the NH. There is no $ to pay all the various & continuous costs of the property in the Lady Bird. If the now in a NH Medicaid elders family cannot afford property costs - especially the important ones like taxes & insurance- from day 1 of medicaid for however many years till beyond death, then doing a Lady Bird / Enhanced Life Estate is a waste of time & $. 

Brodie - If your finding that this scenario is your situation, I’d suggest you also clearly ask the atty if there is anyway to be reimbursed for any property costs paid by you. If you are needing or hoping to get that $$ back. As the house is still in elders name, proceeds from the sale is theirs. They can’t easily write you a check as it could look like gifting by Medicaid. 
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Reply to igloo572
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I am also not familiar with a quitclaim life trust.

Now if the house had been quit claimed to a grown child or another relative and Dad has "life use" of the property.... then Dad still has "life use" of the house even if he is in a nursing home for many years. You cannot sell the house. Having a life-trust may makes things different....

Before doing anything with the house, talk with an "Elder Law Attorney", and get his/her recommendations. You will need to see how this works if your Dad is using Medicaid, which is funded by the taxpayers.
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Reply to freqflyer
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I'm not familiar with a quit claim life trust. Do you mean he quit claimed his home to a Living Trust, i.e., funded the home into the Trust?

Whether or not you can sell it depends on how the Trust is worded. If he's the "settlor" (person who created the trust), as well as the Trustee until his death, I don't believe that you have the authority to sell the home, unless you're named as the successor trustee and sell the home after he passes.

Is your father getting any Medicaid assistance now?

A little bit more information could help answer your question.
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Reply to GardenArtist
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