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My mothers house is paid for, and she just pays taxes and utilities. She is now in the Nursing Home for Rehab, but she also has a bad heart and Leukemia. Her time will be up with insurance paying for everything pretty soon. I was told the house is exempt because my brother lives there, but can we sell the house without the nursing home taking the money

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If your brother cared for her and kept her out of the NH, he might be able to keep the house. I think the doctor would have to certify to that fact. If he just lived there, and he's not disabled or anything, I think he's out of luck.
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Suzzie, best bet is to find an estate planner or elder law consultant who can help plan for future needs. If Medicaid seems to be in the cards for long term care, state regs vary a lot. Some have waivers where you can get care at home, most all have look back periods of 5-10 years and though the home is exempt while the elder lives there or at least states they intend to return the, and sometimes while a caregiver lives there, there is usually "estate recovery" in the long run. They exempt about 2k or a little more, plus burial policies, plus one vehicle, and if there is a "community spouse" there is a program that leaves them enough to cover minimal expenses of living in the home in some states as well, though frankly, in my Mom's case when Dad was on Medicaid, there was nothing left to pay anything else like medical bills that were not covered and it was still hard; I ended up chipping in a bunch for her care too. The nursing home does not take the house directly, it is actually Medicaid counting the proceeds of a sale as asset to be spent down (no longer exempt) or having a lien on the home after a person they helped pay for care for passes on. There are other options if Mom was a veteran or if there is any kind of long term policy she might have. If she has other assets those are expected to be spent down first also before getting on Medicaid. There is a lot to learn about the funding and about what programs are available locally too, and I wish you well! Get expert help and be prepared for a steep learning curve.
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Can I bring my mother back home, and have caregivers through Medicare come in everyday for her bathing etc.
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My mother is not applying for Medicaid yet, as she still has some funds left. She has Medicare and a secondary insurance that is paying for care for 100days. I believe the house is exempt as long as he lives there?
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Yes he has been taking care of her for 10years well living with her.
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No, it is far too late to transfer assets. Your brother may have an exemption that allows him to live there, but he won't own the house or be able to sell it. He will have to prove that he lived there and cared for her.
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Is your mother on or going to apply for Medicaid?

Was your brother taking care of your mother while we was living in her house?
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