Tag Archives: ELDER LAW

If wife transfers house to me, then goes into a nursing home, will she obtain Medicaid?

Q: If my wife transfers her house to me, is that a disqualifying transfer under Medicaid in Pennsylvania? I was told that if my wife goes into a nursing home and then immediately transfers her home to me (the house is in her name only), then she can still qualify for Medicaid – is this true? Isn’t there a 5-year look back period? I was also told that the look back period was eliminated.

A: Transfers between spouses generally don’t trigger penalties. The five year look back is alive and well. A spouse’s principal residence is an exempt resource. The PA Department of Public Welfare and Medicaid rules are complicated and if you have assets worthy of preserving, doing this alone without the assistance of an attorney can end up costing you. Consult an elder law attorney to make sense of all of this.

How does the Medicaid look-back rule affect property transferred to adult children?

Q: I’ve been told the rules differ from state to state. The surviving parent lives in Massachusetts. We live in Pittsburgh. If property is transferred to an adult child more than 5 years before the parent requires Medicaid assistance, how is the look-back rule handled?

A: Per federal law, the look back period runs forward 60 months preceding a transfer, so gifts 61 months before a Medicaid application are outside the look back period. Consult an elder law attorney or estate attorney versed in Medicaid law. Minor timing errors can cause thousands of dollars of loss. It sounds like you made the look back period but would consult with a local Massachusetts attorney.

Will Medicaid take my inheritance?

Q: If I am on Medicaid and I receive and inheritance will Medicaid take the inheritance for past services they have paid?

A: No, Medicaid will not take it, but as you are aware, the inheritance will render you ineligible for Medicaid, very generally to the extent of the amount of the inheritance. With a little bit of planning, however, it is possible the receive the benefit of the inheritance while remaining on Medicaid. A special needs trust can be established into which the funds are transferred, or the funds could be transferred into an account in an established pooled trust without causing you to be disqualified. The trustee would then spend the funds on those things not covered by Medicaid. I am over-simplifying the nature of these trusts, but the point is that you get the best of both worlds. This is a very complex area of the law and it will take time to set up the proper trust to catch the inheritance. Don’t delay.

When elderly mom enters nursing home, can I keep her house?

Q. When my elderly mother enters a nursing home, can I keep her house? I am her 24/7 caregiver and have no home otherwise. I have both medical and durable POA and I am responsible for 100% of the household expenses, upkeep and taxes. The deed is in her name. I don’t know what other details are required here. I have lived here and been her caregiver for 12 years.

A. Make sure your mother has a will in place that leaves the house to you. If there are no other children and she has no surviving spouse, you can inherit the house even without a will. However, it is best for her to have a will. If she eventually runs out of cash or liquid assets to afford the nursing home, you may have to apply for Medicaid/PA Department of Public Welfare (DPW) for her. They may have an interest in the home but as a surviving child/caretaker living in the home, they will not force you out of it. When she dies, DPW can go after the deceased person’s property under the Medicaid Recovery Program. However, given the fact that you were her caretaker for over two years prior to DPW eligibility, you can file for relief as an “undue hardship” under the DPW rules and probably keep the house. See a lawyer for a more thorough examination of your mother’s situation in light of Medicaid rules and regulations.

Denied Medicaid because I have too much money in my bank account.

Q. I have been denied Medicaid because I have too much money in my bank account. What can I do with the excess without spending it? The state has asked for receipts or detailed list of expenditures.

A: There are various ways to spend down excess Medicaid resources. Sometimes gifts are useful but other they can also disqualify you. Buying things and paying debts often are good spend down techniques. However, you really need to consult with an elder law attorney before you set out to do this.

Can I become my aunt’s power of attorney?

Q. Is it possible that i can become my aunt power of attorney? Her mental state of mind is going downhill and she has no children. The friend that she was staying with just recently died. He was the one that took care of her. Helped her pay her bills and keep up with her hygiene. Right now she is staying with me but i don’t feel as though I am capable of taking care of her myself.

A. Yes, I assume you can become the agent on a Power of Attorney for your aunt, unless there is some reason you cannot. A General Durable Power of Attorney (GDPOA) is probably recommended but you really need to sit down with an attorney and discuss all of the facts. She needs to be mentally competent to sign a GPOA. Don’t wait longer to do so, as her condition may deteriorate and render her incompetent to sign. You may also need to contact the Department of Aging to see what help you can get. An attorney can also advise you about applying for Medicaid if she has insufficient money to pay for her care.

If mom enters a nursing home, can I keep her house?

Q. When my elderly mother enters a nursing home, can I keep her house? I am her 24/7 caregiver and have no home otherwise. I have household expenses, upkeep and taxes. The deed is in her name. I don’t know what other details are required here. I have lived here and been her caregiver for 12 years.

A. Make sure she has a Last Will and Testament in place in which the house is left to you, assuming that is her wish. If there are no other children and she has no surviving spouse, you can inherit the house even without a will. However, it is best for her to have one. If she runs out of cash to afford nursing home care, you may have to apply for Medicaid/DPW for her. They may claim an interest in the home but as a surviving child/caretaker living in the home, they will not throw you out of it. When she dies, DPW can go after the deceased person’s property under the Medicaid Recovery Act. However, since you were her caretaker for 2 years prior to DPW eligibility, you can file an undue hardship petition and probably keep the house. I would see a lawyer versed in Medicaid law to review your mother’s specific situation.

Is a prepaid funeral a proper way to do Medicaid “spend down”?

Q. My father is in a nursing home applying for Medicaid. My mother wants to pay for burial costs now. Would this be a bad thing, applying for Medicaid? My father is already in nursing home and afraid Medicaid will take all of his money.

A: Any “spend down” should be done as part of the spending down provisions through a Medicaid eligibility application. Certain prepaid funeral arrangements are Medicaid exempt, it would be a really, really bad idea to make prepaid funeral arrangements with the idea of protecting assets when long term care is needed UNLESS the arrangement is part of Medicaid planning under auspices of an elder law attorney. Why? Because prepaid funeral arrangements are exempt only if they satisfy state requirements, an arrangement that doesn’t meet state requirements can cost thousands of dollars by delaying eligibility, and a prepaid funeral may or may not be the most cost effective technique in different situations. It is well worth consulting a local elder law attorney.