The house is intended to remain in the family and she is the only person currently on the deed, what does 5 year look period mean? I would like to add other family members name to the deed as her health is declining and she has no will.
Don’t do anything till you or dpoa meets with elder law atty! Please!
If she is on Medicaid, she is able to continue to own her home as an exempt asset. If only her on Deed she is 100% owner no matter what others may want to desire it to be. But upon her death, house goes from exempt asset to become an asset of her estate and subject to whatever MERP Medicaid estate recovery actions done in DC.
I foresee all sorts of other issues.... there’s no will! so thats a big problem in & of itself as when they die “intestate” most states have it such that all assets escheat to the state and you & rest of family need to establish lineal heirship with whatever process required by lineal (like notifications in newspapers wherever she or former spouses lived). But meanwhile property in states control and property can have a claim or lien placed onto property to resolve $ paid by Medicaid on her NH stay. Intestate puts state in control.
If she not cognitive & competent to do a will now, big problems ahead.
Adding names onto property basically is gifting an asset. Not allowed by Medicaid. Say house worth 300k and she gives 1/3 to her two kids. That’s a 200k asset gift which causes a 200k transfer penalty from Medicaid. She won’t be eligible for Medicaid anymore. So family will need to pay for NH for however long penalty period is. You able to pay this?
Medicaid requires elders to have their monthly income as the copay or SOC (share of cost) to the NH each mo. So who in family will be paying all the house costs from now till beyond her death? Taxes, insurance, maintenance, etc. will need to be paid by someone other than mom in the NH.
MERP will need to be dealt with eventually. Is it likely that heirs will have exemptions or exclusions to Estate recovery and can provide documentation if needed. There’s no will so you can’t open traditional probate to deal with claims against estate.
Dallas - just occurred to me in rereading your post..... was this house just inherited by your mom? So house not a part of her original Medicaid application? House perhaps not in DC but another State?
If so that a slightly different situation. Still an issue for Medicaid eligibility. Could you post the backstory on house?
Does she have ALZ or Dementia. Did she inherit this house after she was declared to have one or the other? In NJ an ALZ patient cannot inherit. A man I know sister left her estate to his wife for his care. And I really don't think a POA can change a legal document like a deed. They can sell the house but the proceeds go to Moms care. No will, then an administrator will be assigned. Could be a relative or a lawyer. If house is not sold before she passes, Medicaid will put a lean on it that will have to be satisfied when sold.
If she is on Medicaid, she is able to continue to own her home as an exempt asset. If only her on Deed she is 100% owner no matter what others may want to desire it to be. But upon her death, house goes from exempt asset to become an asset of her estate and subject to whatever MERP Medicaid estate recovery actions done in DC.
I foresee all sorts of other issues.... there’s no will! so thats a big problem in & of itself as when they die “intestate” most states have it such that all assets escheat to the state and you & rest of family need to establish lineal heirship with whatever process required by lineal (like notifications in newspapers wherever she or former spouses lived). But meanwhile property in states control and property can have a claim or lien placed onto property to resolve $ paid by Medicaid on her NH stay. Intestate puts state in control.
If she not cognitive & competent to do a will now, big problems ahead.
Adding names onto property basically is gifting an asset.
Not allowed by Medicaid. Say house worth 300k and she gives 1/3 to her two kids. That’s a 200k asset gift which causes a 200k transfer penalty from Medicaid. She won’t be eligible for Medicaid anymore. So family will need to pay for NH for however long penalty period is. You able to pay this?
Medicaid requires elders to have their monthly income as the copay or SOC (share of cost) to the NH each mo. So who in family will be paying all the house costs from now till beyond her death? Taxes, insurance, maintenance, etc. will need to be paid by someone other than mom in the NH.
MERP will need to be dealt with eventually. Is it likely that heirs will have exemptions or exclusions to Estate recovery and can provide documentation if needed. There’s no will so you can’t open traditional probate to deal with claims against estate.
Really you need an atty & asap.
If so that a slightly different situation. Still an issue for Medicaid eligibility.
Could you post the backstory on house?