How Home Sale/Lease Back Treated by Medicaid?

by max
(PA)

hypo:


-parents own house.
-son buys the house from parents for fair market value.
-parents lease house back from son at fair market rental value.
-how would medicaid treat this?

any comments?

Comments for How Home Sale/Lease Back Treated by Medicaid?

Average Rating starstarstarstarstar

Click here to add your own comments

Sep 29, 2010
Rating
starstarstarstarstar
Cash paid may make it difficult to qualify for medicaid
by: Gabriel Heiser

I'm not sure why the parents would trade their house (an exempt asset) for cash from the son (a countable asset) but in any event, so long as the son pays the parents the fair market value there is no gift to worry about.

Again, if the parents are paying fair market rental value to the son under the lease, there is no gift and it is perfectly acceptable to do this.

I'm not sure what the Medicaid plan is, here?it's a little unusual?but depending on the facts of the case, there could be a good reason to do all this!

I write more about medicaid planning at MedicaidSecrets.com


Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Medicaid Questions.

Subscribe to
Estate Planning Hub


Your First Name


Your E-mail Address

We keep this private.



Follow the Estate Planning Blog.




--by Beth Heikkinen
Marquette, Michigan
I just want to thank you for this site. It answered my questions. I think many people that do research on the net take it for granted and when they find what they are looking for they forget "someone put time, money, etc into providing me with this information."

Thank you!


Like This Site





Visit Our Social Media Pages

Become a Fan of Estate Planning Hub on Facebook Follow EstatePlanningHub on Twitter Follow EstatePlanningHub on Google+ Subscribe EstatePlanningHub Video on YouTube

Get a PDF version of this website and its sister site here.