Will I have to sell my home to qualify for Medicaid?


Will I have to sell my home to qualify for medicaid, I own my home outright and my deed has a transfer on death to my daughter. Will my daughter get the home or will I be disqualify for medicaid?

This question has been closed for answers. Ask a New Question.
Find Care & Housing


Jud - the less than 5 years transfer penalty can be waived f you qualify for an exemption. I'd suggest you meet with a NAELA elder law atty to have them look into doing whatever to establish the caregiver exemption for you to both his medicaid application and any after death estate recovery (MERP) so that there isn't penalty for the less than 5 year since the transfer of the property to you. I'd try to get it so that you get the caregiver exemption to be done in tandem with the application. It's not a DIY project.

Whatever happened before 2013 doesn't matter; bringing those old details & drama up just get things confused.

I'd bet that you - if you are his only heir as per a valid will - will qualify as a low income heir & possibly disabled heir as well to any recovery (MERP) action should the state attempt recovery (which if house is in your name shouldn't happen but you never know....).

Keep in mind that once he goes into a facility on Medicaid all his income basically must be paid to the facility as his required co pay (also called his SOC/share of cost). So all costs on the house you & you alone will have to pay.

I'd try to find out IF your state's medicaid progam actually pays for AL & there are AL who participate in Medicaid and can provide the level of care he needs and have available beds. Most AL is totally private pay or if they take Medicaid, it is only after living there and private paying for 2 or so years with their name put on a waiting list for a Medicaid bed. Now NH care is covered by Medicaid if the facility participates. It sometimes is that you just have to do whatever to get them qualified on their health history to show a need for skilled nursing & placed in a NH to have Medicaid pay for care.
Helpful Answer (0)

My situation is that my parents home is in my name and has been for 3 years now in ohio. The house had been in mine and my brother's name ,but I ended up having a brain tumor so they took it and put it in his name with stipulation when he decided to sell it was to be 50-50. Unfortunately momand dad both died in 2003 houze was in brothers name.
Then about 2012' he was diagnosed witb dementia at 58 years old. At the time he went on disability. His daughter became rep payee by the government. The next year 2013 she no longer wanted to do it and told me I wS bis sister and I needed to take care of him. So I became appointed and have done so since. At that time she was not helpful nor did she want to deal with him. He decided that he wanted the house to be in my name so we went to an attorney and the house in my name. Attorney changed to my name 2013. It has been 3 years. He is getting worse and talks about going somewhere. (Assisted living) where there are other peoplee all the time. I had to retire 2015 to take care of him. He has no assets. Does anyone know what this means since the houze has not been in my name for 5 years?
Helpful Answer (0)

Note that if a house sits empty, your current homeowner's insurance carrier might cancel the insurance as your home now becomes high risk. Then it becomes an issue finding a homeowner's insurance company that will accept the risk.

My Dad had moved from his home, and I called his insurance carrier... no they will not cover a vacant house, but they will cover the house if it is For Sale and marketed at fair market value.

There is so much to think about, and to plan ahead.
Helpful Answer (0)

It could be a claim against the estate rather than a lien. Just which will depend on your states laws for property, probate and how medicaid is run. Like for TX it's a class 7 claim against the estate in probate which is very different than dealing with a lien placed day 1 of Medicaid or a all claims are equal probate state.

You have an additional twist in that you did a TOD which I think means title moves without probate & house outside of probate for estates assets, this could mean no estate recovery MERP claim/lien is placed at all - I'd suggest you find out IF a TOD means no MERP. It could well be that a TOD is viewed as a lady bird deed in your state so the property in not a recoverable asset. It's a eider law & real estate atty question. if your daughter is your only heir, dealing with all this will be easier.

What whatever the above, the house is an exempt asset, although that sounds just terrific, it poses financial issues for both you & your daughter. If you are thinking that you will be moving into a NH and applying for medicaid, it will mean that all your monthly income must be paid to the NH as your required co-pay or SOC (share of cost). You will get a small personal needs allowance ($35-105) but that's it. All the expenses of the house will need to be paid by others from day 1 of Medicaid till after you die and the property is transferred and whatever costs to do this. I'd suggest you & your daughter put pen to paper and review all your house costs from the past couple of years, tally up taxes, insurance, utilities, maintence etc. Can your daughter afford the costs? And afford it for years?

If the house is going to be empty all the while you are in a NH & till you die, is this going to be problematic? Like if she lives in another state are your neighbors going to keep an eye on the house and for possibly years? Or is it in a neighborhood that is more marginal so squatters or thefts ate an issue? If there is an unexpected cost - eg a tree needs to be cut down & it's $ 2k and coordinated with power company to do - can your daughter deal with this?

Sometimes family rents the property, if so it most be rented at fair market rental rates & a part of the rent will apply to your monthly income paid to the NH. If your income is high already, renting at FMV could take you over Medicaid limits.

Also think if your daughter is the type to keep documentation on all costs on the house and in OCD detail as these may need to be submitted to medicaid, MERP, IRS or city/state for rental income, or to the court after death to show exclusions to MERP claims or liens or rental details.

Keeping the house can be done, it's to me like having a second or third home and all its costs but without a guarantee of ownership so runs a risk. Costs could be affordable & daughter could be ok with risk. But maybe not. Most families are all hung ho at the start but quickly loose interest.....especially if the house is beset with all sorts of problems & costs and the empty house gets placed with a Realtor & on the market within the year. The proceeds of the sale take you over Medicaid limits, so you end up doing a spend down & or reinbursement to medicaid.....then reapplying for medicaid once you are again impoverished.

Out of curiosity, what is the tax assessor value on the house?
Helpful Answer (1)

You do not have to sell your home (as long as it is your only property) to qualify for medicad. however, medicaid will put a lein on the house to recoup what they spend on your care. The lien will come due when you pass. Medicaid is a program where the taxpayers of the country pay for your medical care...so they will recoup any payments they can when you pass...you can't just get free care. your daughter's inheritance comes after all the liens/bills are paid from your estate, not before.

Helpful Answer (1)

This question has been closed for answers. Ask a New Question.