Should I put the house in my name?

2tired - I'd like to expand on jeannegibbs answer (which is spot-on) - my mom is in a NH & on Medicaid. NH run 4K - 10K a month, so 48K to 120K a year. Medicare does not pay for long term care and is really about hospitalization and short term rehab (which can be in a NH that has a rehab unit). Most elderly do NOT have the financial wherewithal to pay for NH for the many many years that they could end up needing skilled nursing care in a NH. It's my opinion that if they live long enough, they will run out of $ and the caregiver(s) will run out of steam so eventually a NH will be needed. Medicaid, which is a joint state & federal program but administered by each state, pays for about 70% of NH stays in the US. Medicaid is a "needs-based" program so the NH resident is expected to use all their non-exempt resources towards their care or their property first and foremost and only after they have spent down to roughly 2K in non exempt assets can they get Medicaid. They can keep their exempt assets (home, a car, a no cash value funeral & burial policy, a small term life insurance policy and about 2K in the bank and a few other items) but all their monthly income has to be paid to the NH except for a monthly personal needs allowance of $ 30 - 90, depending on their state.

If they have a home, they will not have the funds to pay for anything for the home (which is an exempt asset) as the personal needs allowance is easily spent on NH related items (like hair salon or cable) or clothing needs or the items that neither Medicaid or Medicare pay for. For my mom, her $ 60 a mont is easily hair salon visits and candy from the canteen.

If you live in the house, you are expected to pay for the expenses for the house. For many caregivers, there is no $ to do this. This is especially true if there still is a mortgage on the home and the family living at the home doesn't have an income as they have been doing caregiving without pay. This is where it gets sticky for family and why you & your mom need to see an elder care attorney who practices in your state and preferable in the county where the home is located. Having a home has a whole set of issues regarding exemptions and how the home is dealt with after death via MERP - Medicaid Estate Recovery Program. There are exemptions regarding homesteads and caregivers; exemptions if a home is actively on the real estate market; exemptions on maintenance and other property expenses; the list goes on and the attorney will know what will be the best plan or options for you both to consider. Good luck.

Avoid probate delays, estate leeches, and medicaid / irs sticky fingers.... If you can, put the house in your name. And anything else of value. Also, be sure your loved one has a will that says strictly what should occur upon their demise.

The 60 days is the "look back" period. Google it.

When you sell a home, you may become ineligible for Medicaid. Though Medicaid doesn't consider your primary residence to be a countable asset, it does count the proceeds of the sale. If the profit you make from the sale causes your assets to exceed Medicaid's limit, you will no longer receive benefits. However, if you spend the money from the sale over time, you can reapply for Medicaid once your assets are below the limit.

To remain eligible for Medicaid after selling your home, you may consider spending the profits to stay below the countable resource limit or transferring the assets to another individual. While Medicaid can't prohibit you from spending your money, you may become ineligible for Medicaid if you transfer funds to someone else. If Medicaid discovers you have transferred assets for less than their fair market value to be eligible for coverage, it may terminate your benefits.

Q: Some time ago, I was given POA. Would that also include bank accounts?

A: Not unless the POA says you have control over her financial transactions/bank accounts. And if your name is on her account you had better be sure you can justify what you are spending her money on. Anything that would be considered income that should have gone to her care that you used for something else would be a problem not only in qualifying for Medicaid (you have to explain her expenses and provide proof for those considered "deductible" toward her eligibility) but also could get you in trouble with Social Security if you are her representative payee as well.

VIP's - my mom still has her home, is on Medicaid and I & another family member pay for all on the vacant house. Under MERP - Medicaid Estate Recovery Program - there are all kinds of exemptions. One of those is deductions (from the MERP tally) of all & every costs paid on & for the deceased home:

Texas Administrative Code:
TITLE 1 ADMINISTRATION
PART 15 TEXAS HEALTH AND HUMAN SERVICES COMMISSION
CHAPTER 373 MEDICAID ESTATE RECOVERY PROGRAM
SUBCHAPTER B RECOVERY CLAIMS
RULE §373.213 Deduction Allowed for Expenses for Home Maintenance and Costs of Care
(a) An amount equal to necessary and reasonable maintenance expenses and taxes may be deducted from the Medicaid Estate Recovery Program (MERP) claim for maintaining the home of the deceased Medicaid recipient, provided that sufficient supporting documentation of these expenditures, such as receipts, is provided to MERP by estate personal representatives, heirs, or legatees. Necessary and reasonable expenses for maintaining the home include real estate taxes, utility bills, insurance, home repairs, and home maintenance expenses such as lawn care.
(b) An amount equal to the necessary and reasonable expenses for the direct payment of the costs of care (including payment of personal attendant care) provided for a deceased Medicaid recipient that enabled the recipient to remain in his or her home and thereby delayed the institutionalization of the Medicaid recipient may be deducted from the MERP claim, provided that sufficient supporting documentation of these expenditures, such as receipts, is provided to MERP by estate personal representatives, heirs, or legatees.
(c) Requests for obtaining allowable deductions from MERP claims for expenses under subsections (a) or (b) of this section must be made in writing within 60 days after receipt of the Notice of the Intent to File a Claim by MERP.
All supporting documentation must be attached to the request and sent to MERP, Home Maintenance/Costs of Care Request, P.O. Box 13247, Austin, Texas.

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All states have MERP exemptions, but you have to file for them and do so in a very timely manner. MERP is a legal process and whomever does MERP in your state has to determine if they will proceed with the MERP claim in the first place.
That is why you have to get the stuff in asap after death, so the determination can be made if a MERP legal action will even happen.

I have many of the same questions, 2Tired. My Mom has a substantial amount of farm land and bank stock in her name. Her home and the surrounding property is in a living estate with my nephew. I'm seeing a tax attorney tomorrow to discuss the pros and cons of moving things out of her name. My DPOA states that I have authority to transfer property and funds as I see fit. I want to apply for the Veteran's Aid and Attendance benefit for her...not so much concerned about medicaid. The VA doesn't have a look-back period so it may be possible. My concern is the tax burden that will be placed on my brother and I regarding gift taxes, cost basis etc. I'll write an update after I see the attorney.

I met with the estate/tax attorney. It appears that an irrevocable living trust is the best option for us. I have to make certain that it is appropriate for both VA and possible medicaid, but I think it will help. Also, assets placed in an irrevocable living trust do not go through probate when my mother passes away.
I have a DPOA that will allow me to establish the trust for her. Now I have to begin collecting deeds and stock certificates.

THANK YOU Igloo!!! that is very helpful

I meant 60 MONTHS is the "lookback" period.

My mother has a caregiver during the week while I work (from 6am-7p). Also from Friday morning thru Sunday morning. I stay with her during the weeknights and work a full time job. I travel an extra 50 miles a day, pay all her bills (with her money), grocery shop, keep up the upkeep on the house, etc. Are there any tax breaks for me? I do not get paid.