Tag Archives: MEDICAID ELIGIBILITY

Cousin gave us money. Will we have to give it back to cousin’s nursing home?

Q: Pa and NJ nursing home 5 year look back. My wife and I each received $10,000 from her cousin in February of 2010. Can nursing take money back? We reside in NJ and PA. Wife’s cousin will have to go into nursing home prior to the 5 years in February 2015. The cousin currently receives PA Medicaid for health coverage. Will the nursing home make us give the money back? (which has been spent) Will there be a penalty term?

A: There is some confusion in your question so I strongly urge you to sit down with an attorney with all of your information. Simply put, a nursing home cannot make a donee who did nothing wrong return a gift. However, most gifts within the look back period trigger Medicaid penalties. It would be well worth an elder law attorney consult to determine gift ramifications and Medicaid planning options. It is the Medicaid look back, which is 5 years back from the date of eligibility, which matters. The transfer may be questioned. If you are alleging it was payment for caretaker services, you better have such services documented.

Will my Aunt lose her home to Medicare?

Q: My aunt might need nursing home care. I have been giving care at her house. Will she lose her house? She is single and owns her home. I am her executor when she dies. My aunt is on Medicare and I have lived there for 5 years.

A: Receiving Medicare benefits will not result in a claim on her home. I will assume for the purposes of this question, you mean, will she lose her home to a Medicaid claim if she should enter a nursing home. You really need to talk this over with a local elder law or estate planning attorney versed in Medicaid law. Generally, Medicaid requires the value of all property owned by the applicant in the last 5 years to be considered in the look back period, relating to their potential claim. So, if your aunt applies for Medicaid assistance in the next five years, the house may be subject to a Medicaid claim if it is still in her name. There are exceptions to this claim that may allow you to shelter the home completely or at least a portion of its value. For example, if you have been her primary caretaker and living in the home for a period of two years prior to her admittance to a nursing care facility, you may qualify for an undue hardship exception under the PA Department of Public Welfare rules. An attorney may also be able to create a trust for you that shelters a portion of her estate. This is a gross simplification of the issue, so once again, please consult with an 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.

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.