There's a 'look back' period at the time of your application for medicaid coverage of the nursing home costs. If you change the ownership of the house within that time, the house will be included in counting the person's assets. Make an appointment with an attorney who specializes in elder law. It will be one of the best investments you can make if there are significant assets to consider.
FYI: If there is a disabled family member living in that house, Medicaid can not consider it as an asset, even if it falls within the look back period. Medicaid doesn't actually try to take the house back, what they do is make the person ineligible for Medicaid until the look back time period has passed. So it could actually become a huge problem for the person trying to go on Medicaid.
Yes, Ruggles. And there are other problems you can inadvertently create by 'winging it' in an attempt to protect assets. Go see an attorney. It's not a task for amateurs.
5 year look back on all assets. Property ownership is recorded and easily accessed by the state, so it will come out if property was sold, gifted or transferred and the amount of the transaction.
Transfer penalty applied to the assets at whatever is the reimbursement rate of Medicaid to the NH in your state. For example in Texas it's about $ 145.00 a day transfer penalty. So if they gifted you a house worth $ 100,000 that would mean someone would have to private pay 690 days of their NH care in Texas.
Whatever the case, you really should get an elder care attorney to review the income and asset situation to come up with a plan than works best for all.
Medicaid doesn't actually try to take the house back, what they do is make the person ineligible for Medicaid until the look back time period has passed. So it could actually become a huge problem for the person trying to go on Medicaid.
Transfer penalty applied to the assets at whatever is the reimbursement rate of Medicaid to the NH in your state. For example in Texas it's about $ 145.00 a day transfer penalty. So if they gifted you a house worth $ 100,000 that would mean someone would have to private pay 690 days of their NH care in Texas.
Whatever the case, you really should get an elder care attorney to review the income and asset situation to come up with a plan than works best for all.