Can House Be Deeded to Caregiver Son and Avoid Medicaid Collection?


(Indiana)

Question:


A friend is dying of cancer. Her son and daughter-in-law have been living with her for several years since she
is elderly. Currently she is in hospital awaiting a room in a local nursing home.

What about her home, which will go to her son once she has passed away? Will Medicaid pay for her nursing home stay? Will she lose her home? Will her son lose the home?

Answer:

If the son has lived with Mom for at least two years
immediately preceding her entering the nursing home, and if his care of her allowed her to delay entering the nursing home, and he can document all that, then it is permitted for Mom to deed her house to her son now, without a transfer penalty for Medicaid eligibility
purposes.

If they cannot meet that test, then the house will be exposed to a claim by the state for all the Medicaid payments it will make on behalf of Mom during her life.

During her lifetime, however, the house will be exempt and will NOT have to be sold. Note, however, that several states only exempt the home for 6 months, so you need to see if your friend's state is one of those.

You can read more at Medicaid Secrets.com.

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--by Beth Heikkinen
Marquette, Michigan
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