I have read there are ways to pass your home on to an heir and not be required to sell it and be forced to use the money to pay for nursing home care. But I'm not sure how possible this is, it possible at all. Thanks!
Yes, Medicaid does not count the house as an asset/income. But the problem arises that if it sells it sells for Market Value and the proceeds will go to your care. The other side is, if it doesn't sell, you have no money to pay mortgage, bills or upkeep. If a family member wants to foot the bill, no guarantee they can be reimbursed upon the sale.
If you are married, that person becomes the Community Spouse anfd will be allowed to remain in the house. Upon ur death, a lean will be put on the house but monies not recouped until the death of the C. Spouse or he/she leaves the house. There is more to this scenario, but this is basic.
For me, I would not buy a house to protect money. The housing market goes up and down. You could pay 200k and in ten years the property will only sell for 150k. You have lost 50k. I suggest you see a lawyer well versed in Medicaid.
JLSeagull, I fully understand you wish to keep a home in the family, that is a very powerful request.... but would it be fair to us taxpayers who fund Medicaid to pay for your care when you have equity in a home that will help pay toward your care?
My house and other assets are in a Revocable Trust, but if for some reason I need to use Medicaid for around the clock care, those assets need to be use first before Medicaid would kick in.
But who knows down the road what Congress will change and if any new rules will be put into place. I know Congress is currently messing with our IRA's [Individual Retirement Account] changing how it can be distributed to heirs. The Bill has currently passed the House, so if it passes the Senate and the Presidents signs off on it, I will need to make changes to my Trust.... [sigh].
There are lawyers who work in elder care and trust who will help you decide if this is the move you want to make, and they will charge anywhere from 350 to 700 an hour to do so. It is quite costly. The key word when you call to see if the lawyer specializes in such things is "assets preservation". Many lawyers who specialize in this work will meet with you free for one hour consultation, but listening to the legalese will be confusing to say the least; so if you meet with one do take along someone else, so there are four ears to hear it. However, do know that the monies you have, howEVER they are invested, are your monies, and they stand to help you manage YOUR life, pay for your needs. To pretend that you have no assets, to let the government then pay your costs--well, the government frowns upon it, and will be somewhat relentless in attempting to recover costs from you whether you are living or dead. Almost as relentless as Laywers, hee hee.
This will depend on laws in your state. As said below, you need an elder care attorney. That’s the only you can do this. and It is NOT cheap to have them set any of this stuff up.
If you are married, that person becomes the Community Spouse anfd will be allowed to remain in the house. Upon ur death, a lean will be put on the house but monies not recouped until the death of the C. Spouse or he/she leaves the house. There is more to this scenario, but this is basic.
For me, I would not buy a house to protect money. The housing market goes up and down. You could pay 200k and in ten years the property will only sell for 150k. You have lost 50k. I suggest you see a lawyer well versed in Medicaid.
My house and other assets are in a Revocable Trust, but if for some reason I need to use Medicaid for around the clock care, those assets need to be use first before Medicaid would kick in.
But who knows down the road what Congress will change and if any new rules will be put into place. I know Congress is currently messing with our IRA's [Individual Retirement Account] changing how it can be distributed to heirs. The Bill has currently passed the House, so if it passes the Senate and the Presidents signs off on it, I will need to make changes to my Trust.... [sigh].
However, do know that the monies you have, howEVER they are invested, are your monies, and they stand to help you manage YOUR life, pay for your needs. To pretend that you have no assets, to let the government then pay your costs--well, the government frowns upon it, and will be somewhat relentless in attempting to recover costs from you whether you are living or dead. Almost as relentless as Laywers, hee hee.