LV - For Medicare, assets & income do not matter. Medicare is a general entitlement that most of us qualify for as we have been paying into it via FICA, and which we can apply to enroll into right before age 65. Once retired and on SS, Medicare for almost all continues to get a monthly premium deducted from your SS check.
But Medicaid is probably what you are thinking about. For Medicaid, it is a "needs based" entitlement which is administered uniquely by each state within an overall federal guideline. For Medicaid you have to be eligible BOTH financially (basically impoverished) and medically (for NH admits would be needing skilled nursing care with documentation showing this and doctors orders for it). Medicaid is what gets applied for to pay for LTC in a NH as NH is a dedicated funding for Medicaid. States can do waiver programs with Medicaid and through those they can pay for AL, in-home health services, etc.
By & large for Medicaid they can own a home (within certain value) and a car. But the state is required to attempt a recovery of all costs paid by Medicaid from the individuals estate (MERP). Buying a home now if it is looking like he is going to need Medicaid in the near future, to me, just doesnt make financial sense. If it;s looking like he is going to need to be in a facility (NH, AL) rather than needing community based Medicaid services for years & years, his buying & having a home really really doesn;t make sense as LTC Medicaid in a facility requires them to do a co-pay or SOC (share of cost) of ALL THEIR MONTHLY INCOME each month to the NH except for a smallish personal needs allowance. They will have no - none - nada of $ anymore to pay for anything on that house. So to keep the house someone in the family will have to pay every cost (taxes, insurance, maintenance, etc) from day 1 of Medicaid till beyond their death and deal with MERP, probate, etc.
This site has really good articles on the M&M's. Try to read up so you understand how they work together but are very different.
OK, if parent puts all their money into buying a home then is left with less than $2000, you could get Medicaid to pay for the nursing home. Then you live in the house rent free, except you have to pay the taxes, utilities and upkeep. This plan works great because the house is an exempt asset. One car is also an exempt asset. Then when they die you inherit the house and car? Yes! and you also inherit the entire nursing home bill, which is attached to their estate, called a "lien".
And, the "exempt asset" part lasts only as long as they express an intent to return home. It can be unrealistic but most people do. If the house is then sold, the money would go for her ongoing care or care expenses.
Now, that said, there are some cases where a long-term live-in caregiver has some rights to stay in the home after caregiving ends, but you'd have to check that out in your state in advance.
But Medicaid is probably what you are thinking about. For Medicaid, it is a "needs based" entitlement which is administered uniquely by each state within an overall federal guideline. For Medicaid you have to be eligible BOTH financially (basically impoverished) and medically (for NH admits would be needing skilled nursing care with documentation showing this and doctors orders for it). Medicaid is what gets applied for to pay for LTC in a NH as NH is a dedicated funding for Medicaid. States can do waiver programs with Medicaid and through those they can pay for AL, in-home health services, etc.
By & large for Medicaid they can own a home (within certain value) and a car. But the state is required to attempt a recovery of all costs paid by Medicaid from the individuals estate (MERP). Buying a home now if it is looking like he is going to need Medicaid in the near future, to me, just doesnt make financial sense. If it;s looking like he is going to need to be in a facility (NH, AL) rather than needing community based Medicaid services for years & years, his buying & having a home really really doesn;t make sense as LTC Medicaid in a facility requires them to do a co-pay or SOC (share of cost) of ALL THEIR MONTHLY INCOME each month to the NH except for a smallish personal needs allowance. They will have no - none - nada of $ anymore to pay for anything on that house. So to keep the house someone in the family will have to pay every cost (taxes, insurance, maintenance, etc) from day 1 of Medicaid till beyond their death and deal with MERP, probate, etc.
This site has really good articles on the M&M's. Try to read up so you understand how they work together but are very different.
This plan works great because the house is an exempt asset. One car is also an exempt asset.
Then when they die you inherit the house and car? Yes! and you also inherit the entire nursing home bill, which is attached to their estate, called a "lien".
Now, that said, there are some cases where a long-term live-in caregiver has some rights to stay in the home after caregiving ends, but you'd have to check that out in your state in advance.