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I have been providing full care for more than 2 years and it is becoming more difficult. I need to put my mother in a nursing home and was wondering when I should have her sign over the house to me? Before or after applying for medicaid? The house is in her name but I have been giving her care for more than 2 years at nursing home level of care (she has dementia). I was told that she could sign the house over to me since I was caring for her but I'm so worried it will become an asset for the state and I will lose the house.

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Igloo, thanks for the information regarding that a house might need a licensed Appraiser's value.

I know with stocks, my Dad's Stock Broker had to give me the price per share as of the date of my Dad's passing. The amount is being used in the Probate of the estate. So that is similar.
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Thank you all for your answers. They were very helpful. I'm going to meet with an elder lawyer this week to discuss my options.
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Freqflyer - it could be that the value of the property is the amount of the appraisal done on property after death and entered in probate under Assets of the Estate and approved & signed off by court. For those don't probate that's the legal benchmark, not tax assessor value, FMV or Realtor market value.
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You will probably qualify for the caregiver exemption for estate recovery / MERP . There kinda 2 ways - imo - to deal with this:
after death & you find out clearly how the exemption is done for your state. Like for TX, the elder can continue to own the home and the caregiver child can file for the exemption with documentation from the elders MD or Social worker that care was provide for 2 or more years prior to elders NH admission. If mom lives a long time getting that documentation may not be easy. You need to be a verifiable full time caregiver during the period. So if you had a job, no exemption. Once mom is on NH Medicaid all her income baiscally must be paid to the NH. So you entirely from your own purse will have to pay all house costs. If you have been caregiving, with no source of income, having mom move into a NH puts you & the house at risk. If this is the situation, please see an elder law atty ASAP to set up some sort of caregiving payment agreement so mom can stay at home a bit longer to get you some funds for when she's gone.

The upside to this is, it keeps property value as Freqflyer wrote.
Downside is If there are other heirs as per moms will to moms estate besides you, each heir needs to qualify for their own exemption. Otherwise MERP can go after thier share. You may need to negotiate with the other heirs.... Mom may need to change her will so you are only heir to make this easier.

Some states allow for documented caregiver to get house transferred upon the elders move to a NH with medicaid application. It's not a DIY project imo. You need an atty to shepherd moms application & the property transfer simultaneous. I'd suggest mom & you get a NAELA elder law atty. to deal with this approach.

Again, if mom goes into a NH & onto Medicaid, Medicaid requires mom to do a copay of all her monthly income to the NH. It's her SOC / share of cost. All costs on the house will fall on you. If there is a mortgage (horrors!!), atop utilities, insurance, taxes,repairs, it could be quite a tidy sum you will need to have.
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Alison, it would be best if the house was in the Will for you to inherit, otherwise you could wind up with capital gain taxes when the time comes to sell the house.

If Mom quit claims the house to you now, then the bases for capital gains taxes would be the price of the house when your Mom had bought it.

If the house is inherited, then the value of the house would be the fair market value of the day that your inherited the house.

A chat with an Elder Law Attorney would be a good idea, that way you can be sure what would be the right thing to do.

I hope you can keep the house since you gave your Mom care at nursing home level for two years. Make sure you kept notes on what you had been doing as Medicaid will ask.
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