My name is on my Dad's house as joint tenants. If he goes into a nursing home, can they take the whole price of the house if sold?

As co-owner of the house, you are entitled to 50% of the net proceeds of a sale of the house. Only the 50% that your father is entitled to would possibly be subject to recoupment by the state following your father's death, IF he had been covered by Medicaid for his nursing home stay. Note that in many states, recoupment cannot be made against a house that passes automatically by state law to the other joint owner (called "joint tenants with right of survivorship" in the deed).

What I was thinking is just remove his name from the house and let yours remain if he agrees to it

I agree with one rare find above

msjdb13, From my experience a nursing home cannot "take" anything, but they do have to be paid. Upon moving in, our NH tried to get me to deposit all my dad's $ into their account, but I refused and just paid them promptly every month out of his funds. If your dad runs out of money to pay for his care and needs to go on Medicaid (mine just did), you will be under Medicaid regulations. I would check with a lawyer for your particular state about the house situation (Medicaid is a state, not fed program). If you chose to remove his name from the house, even if he agrees, it will still fall under Medicaid regulations and restrictions of transferring assets at the point Medicaid application is made.

I have never once regretted hiring a lawyer to get through the Medicaid process. Most elder care lawyers offer a free consult that is worth your time, especially with the house issue.

Do NOT removed Dad's name from the Deed. If anything, remove you own name. If you remove Dad's name and within 5 years later he needs Medicaid payment care, then Medicaid would deduct the equity of the house and he would need to self pay for his nursing home cost.

Plus, if your name is on the Deed and it comes time to sell the house, for income taxes purposes regarding capital gains, the basis would be from the time your Dad had bought the house.

If Dad doesn't go into a nursing home, and you inherit the house via a Will [your name is not on the Deed] then for capital gains the basis would be what the house was worth on the day you inherited.

Vicksky: Thank you for the clarification.

I'm bumping your thread up so it gets a response. I think some here can answer it. I'm not the one to do that, but I don't think they take your house. They may place a lien on it, but that would be after his death if he receives Medicaid benefits for Nursing Home Care. I hope you get some answers.

msjdb13, how long ago were you made co-owner of your Dad's house? If it had been over 5 years ago, then Medicaid would only place a lien on half the equity, which would be used to help pay for his nursing home bill after he had passed. If less than 5 years ago, Medicaid could possible take all the equity.

Best to check with your Dad's State Medicaid office to see what are the steps involved, as each State has different rules and regulations.

If dementia has already been diagnosed then you are in trouble, If not, then you need to hire an attorney who is "Certified in Estate Planning & Probate." Talk to the lawyer about creating an Intentionally Defective Grantors Trust" (IDGT) - URGENT, otherwise, you can loose the house from costs of his care. This type of trust is created to protect the assets at death. A Living Will is revocable and is created while they are alive and can be changed during the course of their life.

Giftinc, a Living Will is for medical decisions and directives; it has no effect on asset disposition. Perhaps you're thinking of a Living Trust?