Of course, if your spouse is living in the home, it will be … When you relocate to a nursing home, you must provide a written statement that indicates your “intent to return home”, which will allow your home to remain exempt under Medicaid rules if it is under a specific equity value. Clever’s Concierge Team can help you compare local agents and find the best expert for your search. An attorney can help find the best solution for you and your family. This is because in order to qualify for Medicaid, there is an asset limit. relatedSites.onchange = function() { You may have some options though. To see what the equity value limit is in the state in which one resides, click here.). It’s also important to note, upon your death, the state is able to file a claim against your estate, which includes your home, in order to collect funds for repayment of your nursing home care expenses. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Q: My parents own two homes, one is their primary residence, and the other belonged to my … Assuming both spouses were Medicaid recipients, the state will try to collect funds for repayment of care via estate recovery unless the home was previously transferred to one of their adult children via the caretaker child exception. It’s best to consult with an elder law attorney before you make a final decision about how to handle your home. However, there are a number of higher valued assets that are exempt (not counted) towards the asset limit. Benefits under Medicare Parts B & D are highly unlikely to change if you sell your home. • Medicaid can put a lien on the new house.

In this situation, the proceeds from the sale of the home would be used towards paying the cost of nursing home care until the proceeds were “spent down” to the eligible Medicaid asset limit.

Transferring the home to solely your name will also protect your home from Medicaid making an estate recovery claim (a claim to be paid back for the cost of your spouse’s nursing home care). However, if the home is sold while you are still alive, the proceeds from the sale will disqualify you from Medicaid until you have “spent down” the proceeds on your nursing home care.

This can be done by paying off debt, purchasing an irrevocable funeral trust, buying an annuity, paying for long-term care, and even taking a vacation. However, doing so requires a judicial process. This is also frequently a concern of adult children whose mother, father, or both parents need Medicaid assistance in order to reside in a nursing home facility. Rather, the proceeds from the sale will be counted towards Medicaid’s asset limit, which is generally $2,000. In other words, it is not counted towards Medicaid’s asset limit, which in most states is $2,000. The fear is that if they sell their home, then they wont be eligible for medicaid in Florida, because they'll have much more by way of liquid assets (cash well over the $2,000.00 limit). Either way, the priority is that you get the care you need at a price you can afford. window.open( this.options[ this.selectedIndex ].value ); Frequently, older individuals may go into assisted living facilities or other long-term care arrangements and have to pay out-of-pocket for the fees and expenses there. Clever’s Concierge Team can help you compare local agents and negotiate better rates.

While one can spend down the extra assets by paying for the cost of their long-term care, other options include purchasing an irrevocable funeral trust and / or an income annuity.

Following the death of a Medicaid recipient, MERPs attempt to be reimbursed the funds in which the state paid for long-term care for that individual. Use of this content by websites or commercial organizations without written permission is prohibited. Your IP: 67.225.138.57 In most states, the Medicaid agency will have a lien against the house to recover what it has paid for your mother’s care when it’s sold, whether now or after she passes away. The Medicaid rate for a care facility is lower than the private pay rate, so you’re technically saving money for each month you stay on the Medicaid system. For instance, you might think you could simply give away your home, or sell it for $1 to your family members or children.

Said another way, if a Medicaid applicant dies and still has a living spouse, Medicaid cannot attempt to recover long-term care costs. Stated differently, the money from the sale of the home will count towards Medicaid’s asset limit. In this situation, if the home is solely in the name of the community spouse, he/she can transfer the home into an irrevocable trust without impacting the Medicaid eligibility of the institutionalized spouse. As long as there is a living spouse and he/she lives at home, the home is exempt from estate recovery. If you have moved to Medicaid pay in your long-term care facility — or you will be doing so soon — Medicaid will pay 100% of your nursing home costs at a Medicaid-approved care facility. My girlfriend wants to purchase the home to care for me, but my mother is afraid they will have to pay a penalty if it is sold for what is owed on the mortgage only. The primary difference in deciding when to sell your home is the expense and difficulty of the upkeep. Now if the home is worth $50,000 and you only want to buy it for $30,000, Medicaid will perceive that as a transfer of the patient’s assets and will want to collect on the amount that should have been paid to the patient. Therefore, there are some differences based on the state in which one resides.