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My wife’s sister and husband recently purchased a house with her daughter and her husband. All four are listed in deed. There is a possibility brother-in-law will need to qualify for Medicaid in California. Sister and brother-in-law live in the house. Daughter and husband have their own home. Will this be a problem in qualifying for Medicaid?

Igloo, always such great thorough answers. And it seems I have heard that California is either increasing or decreasing the Medicaid look back?
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Reply to gladimhere
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Problems for more than Medicaid.... for Medicaid biggest issues imo:
- Estate Recovery has to be attempted onto property which can morph into a lien or claim on it and if mom or younger couple ever want to sell it, the claim / lien has to get dealt with. It can be done but someone is going to have to keep beyond meticulous records on all care & property costs and plan on dealing with CA MERP & likely probate as well
- due to the above, no lending on property or use it as collateral
- medicaids SOC requirement- if there is a mortgage (horrors!) on this property, mortgage must be paid. If somehow juniors are expecting seniors to pay the mortgage 100% or even at 50%, when he goes onto LTC NH Medicaid, all his monthly income must be paid to the facility as his copay or SOC share of cost. There will no- nada - zero of his $ to pay mortgage and all associated property costs - like required insurance, taxes, utilities, maintenance. Mom might be able to get some of his income waived to go to her for community spouse resource allowance (CSRA) but I’d bet it will only be calculated at 50% of living costs. Unless she has extraordinary health care costs, she probably is expected to make do on her own SS & other monthly income. Youngers are 50% owner so responsible to pay their full 50% on all expenses.

Issues in addition to Medicaid:
- homestead exemption- which I think all cities or counties /parishes have - in order for full exemption to go forward and reduce property taxes and lessen other taxes (school) or exemptions (like 65+ fixed max on tax increases) all the property owners must have the home as their primary residence. So 1 couple/50% not eligible for exemptions and taxes will be higher and bill must be paid in full no matter who pays. Or it will go up for tax sale.
- insurance issues. Homeowners & NFIP flood & state peril pools on insurance require insured to have property as primary residence. You may not be able to get coverage easily.... may have to get insurance through independent agent rather than a State Farm, USAA type and to either do 2 polices or have a separate rider $$ attached in juniors name. It’s going to be lots more $$$. If there is a mortgage (again horrors if they are up in age), you must have whatever insurance required for where property is.

Also as an aside, there have been posts from CA, that the current path for LTC NH Medicaid requires them to have come from a hospitalization and then discharged for rehab in a skilled nursing facility aka a NH - both of these are MediCARE benefits - and only once no longer “progressing” in rehab, can they be evaluated to being determined “at need” medically for skilled nursing care and transition to become a LTC resident and apply for LTC NH Medicaid, then residing under Medicaid Pending (application and documents reviewed) status and after clearing Pending then becoming fully Medicaid eligible but with a required SOC to be paid of almost all his monthly income. He gets a personal needs allowance. Varies by state, most do $50 or $60 a mo.

I’ve got to ask, why, oh why, was this done?
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Reply to igloo572
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SamSpade Dec 31, 2018
Thank you so much of your time, igloo, for your extensive answer.  I did not think it was a good idea when they did it.  You have confirmed for me that it indeed was a mistake.
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Yes. If I were you I would suggest they speak with an elder law attorney well versed in Medicaid, then stay away from the fray.
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Reply to gladimhere
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SamSpade Dec 31, 2018
You are so right.  I promise I will stay out of the fray. To make matters worse, the daughter and her husband are having marital problems.  Who knows how that will affect the house issue.
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