88 Yr old Aunt never married, on medicaid to help pay medical bills

by Beverly
(Texas, USA)

My sweet little 88 year old aunt lives alone and is on Medicaid. She has never been sick and used it until the past couple of months. She has cancer of the jawbone and had surgery and is waiting for radiation treatments.

My dad is her only living sibling and she has left everything to him in her will. The only thing she has is a small house worth about 45,000. Nursing home care is not an option for her because my dad and mom will take care of her.

Question is, my aunt wants to transfer the house into my dad's name so that she won't have to worry with it anymore. How would that affect the Medicaid rules? Medicaid, so far, has paid very little on her medical bills.

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Sep 27, 2012
House Transfer Causes Penalty Period
by: K. Gabriel Heiser

If your aunt transfers the house, it could cause a period of disqualification from Medicaid for a number of months (the number of months depends on the value of the house and the state laws).

Note, however, that upon your aunt's death, the state is required to file a claim against your aunt's estate to recover all of its Medicaid payments it made on her behalf during her lifetime. Since her only asset is the house, it will have to be sold to repay the state. So this must be balanced against the disqualification period she would incur by making a gift today.

Oct 01, 2012
by: Mo Johnson

Hi, there are a number of options. You can read a similar question and response at what options for medicaid patient's home that won't sell?.

But, I think you'll see this is a complicated enough question to warrant a discussion with a local medicaid planning attorney.

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Marquette, Michigan
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