Tag Archives: MEDICAID

Can Medicaid put a lien on a house if there was a QCD at least 1yr. prior?

Q: Mother was taking care of grandmother. Mother then dies. Grandson steps in to take care of grandmother. Together they get a Quit Claim Deed. Grandmother gets injury to foot. The doctor advises ER visit. Grandmother kept 3 days then moved to nursing facility for “rehabilitation”. The nursing facility moves grandmother into extended stay. Medicaid takes over after 3months. Medicaid put lien on house approximately 4 months later. Quit Claim Deed was already in place but not recorded yet. (West Mifflin, PA)

A: Medicaid can look back for a period of five years at all transfers of real and personal property by a Medicaid applicant. If the transfer was done without fair consideration, for example, by gift, the transferred property can be considered part of the applicant’s estate. If so, Medicaid can exclude the applicant from funding to the extent of the value of the property. This is what sounds like happened here. It would be worth your while to have the case reviewed by an attorney versed in Medicaid regulations. There may be an exception if a disabled child was living the home or a child serving as a caretaker of the applicant lived in the home for a two-year period prior to hospitalization. In addition, there are permissible exclusions in the spend down process that you may want to be advised on.

Can you explain on how you can make exempt gifts to relatives for Medicaid purposes?

Q: How can my friend gift away money to his nieces and nephews and avoid a penalty from Medicaid? (Pittsburgh, PA)

A: No one can answer this question without knowing all the facts surrounding the potential applicant including but not limited to age health, assets and how they are titled, health insurance resources, etc. You need to consult with an attorney versed in Medicaid regulations. I think you may be confusing “unlimited gifts” with the Federal Gift tax exemption, which has nothing to do with Medicaid. The basic idea is that all transfers for less than fair market consideration (deal and gifts to relatives) within the five-year period prior to a Medicaid application for benefits, and render the applicant ineligible for Medicaid benefits to the extent of the value of assets transferred. An attorney experienced with regulations of Pennsylvania’s Department of Human Service’s administration of the Federal Medicaid program, can guide you and advise if any and what exemptions may be available to your applicant.

Can I sell my mother’s home?

Q: My mother is currently in assisted living and is broke. I am selling her house and would like to know the best way to handle the proceeds. I was advised to put the money in a single premium immediate annuity naming the estate as beneficiary and myself as second beneficiary. I thought annuities carried high fees. Will I be able to pay her monthly bills which will continue to increase from this type of account? And at some point, sooner rather than later I will need to apply for Medicaid so need to know best way to handle the proceeds in that regards. (Clairton, PA)

A: As you may know, there is a 5 year look back period when one applies for Medicaid funding. All transfers of the applicant’s assets for less than fair market value, can result in the applicant being ineligible for Medicaid funding to the extent of the value of the assets. If mother will be receiving Medicaid funding in the next five years, Medicaid will have an interest in these proceeds. There are more details that need to be known before you sell this home, and you should seek the advice of an experienced attorney who is versed in Medicaid regulations. Generally, you should only sell this home for not less than market value and have at least on appraisal if there is any doubt of the value. You should document everything pertaining to the sale. Once you obtain the proceeds, you should and use them only for your mother’s benefit, whether that is investing them for her or using them to pay for her care. An attorney can also advise what if any exemptions or exclusions from Medicaid may be available.

Can I sell parents house with a POA if my sister is on the deed?

Q: Seeking POA & Health directive for elderly parents to sell home for medical care. However, the equity in the house is shared by my sister. It is a Trust deed shared by Parents and sibling -all 3 live together. Both parents are elderly and one is caregiver of the other who is seriously disabled. Both need medical attention so I want to intervene to force medical care. I want POA to sell house to counter expenses- medical and future assisted living cost. However, co-owner sibling of house does not want to sell house and wants house in retirement. Legally, once I get POA then I have control of parents finance and will sell home for the equity to pay for parent’s assisted living expenses and medical care. No money remains for-co-owner sibling, but she can utilize her portion of equity to pay for elderly parent’s medical expenses too.

A:  Having the sister on the deed with the parents may be a problem for you as an agent on a power of attorney trying to sell this house. You need to have an estate planning or elder law lawyer look at the deed. If your sibling holds title as joint tenant or as a tenant in common, you just cannot remove her from the deed. What is happening here is why people should seek competent legal advice before putting a child on the deed to their home. You may also have some potential Medicaid issues if you believe either parent may need to apply for nursing care assistance in the future. You may be able to shelter the house and other assets and have the parents remain eligible for Medicaid, if you follow the advice of a good elder law lawyer. The fact that one spouse may remain in the home when the other is hospitalized and there is a child living in the home, may benefit your parents with Medicaid eligibility. This is a complicated situation and you need to consult with a lawyer.

 

How do I transfer parent’s property to me?

Q: My Dad passed away recently. My Mom is living but has dementia. They both have wills that state the property goes to the surviving spouse or if incompetent (Mom is) to me, the only child. I want to make sure the family property can never be taken away by medical situations, etc. (Swissvale, PA)

A: This is something that must be done under advice of a lawyer. First, mother needs to be competent to sign a deed. Moreover, there are many questions that must be asked to determine if this is an advisable transfer. The foremost question would be whether there is a possibility of her needing to apply for Medicaid in the five years following the transfer. If so, and you have not lived in this home for the preceding two years as a caretaker, this transfer could render her ineligible for Medicaid to the extent of the value of the transfer. Secondly, if you do not reside in this home, your mother will pay more in real estate taxes in that she will lose her homestead exemption and any senior citizen’s discounts available.

ELDER LAW, REAL ESTATE, TRANSFER, DEED, COMPETENCY, MEDICAID

Can I buy my sister in law’s home after her husband enters a nursing home?

Q: She is almost ninety years old and they have spent most of their savings on home care- sitters and supplies and such. We were going to inherit the home later anyway. (Donegal, PA)

A:  If there is any potential of either of these people needing to apply for Medicaid funding for their hospital or nursing care within the next five years, you should consult with an attorney versed in Medicaid regulations before you do anything. If Medicaid is a foreseeable issue, the general rule would be that this home should not be gifted to you and only purchased a market value with careful documentation such as appraisals, photographs, repair bills, etc.

Can my sister force my disabled sister out of the family home?

Q: My sister is disabled and living in our mother’s home in Wheeling, WVA. My mother now resides in a senior living facility. My other sister wants to kick my disabled sister out, but she’s on disability and can’t afford housing. She claims that they need to sell the house to pay the $500 monthly facility cost. Please advise. (Pittsburgh, PA).

A: You need to get to a WVA elder lawyer who is versed in Medicaid and SSI law immediately. Every state manages it’s Medicaid program differently. However, my thought is that you might apply for Medicaid now and be able preserve the home if under the WVA Medicaid there is an exception for a disabled child living in the home, or a child living in the home who was serving as a caretaker at the time of the institutionalized parent’s application. Some state’s Medicaid rules have such provisions.

Should I have my father as POA taken off my accounts?

Q: I’m 53 years-old and live in Pittsburgh PA and have recently had my 87-year-old father listed as POA on both of my investment accts (Roth IRA and TOD) at NY Life Securities so he can buy and sell funds on my behalf without me being directly involved. I’m now wondering if that was the wrong thing to do in regards to the possibility of a nursing home considering my investment accts, in part or whole, as part of my father’s assets if he were to ever end up in a home. I’m sure I also have him listed as POA on my bank accts too. Is this OK or could this potentially cause me a problem and I should remove him as POA on all my accts? If I should remove his POA from all my accts, will these accts now be subjected to Medicaid’s 5 year look back period? Thank you in advance. (Jefferson Hills, PA).

A: There is a difference in having another person on your accounts as POA as opposed to joint owner. POA status allows them to access the account in your place, such as writing or depositing checks. Being on the account, as joint owner, means that the person has equal ownership rights with you. If your father is a joint owner, yes, this could present problems if he ever needs to apply for Medicaid. These accounts could be considered a countable asset for Medicaid. If he is a joint owner, I would transfer the account into your name and keep a record of everything you do. If the issue ever arises with Medicaid, you can successfully defend any claim if you can show that the money used to establish and maintain these accounts was yours and your father was only put on the accounts for estate planning purposes. If is status is just as POA, I do not believe you have any worries regarding Medicaid.

Should we quit claim our house into a trust?

Q: My wife and I are in our late 70’s We have 3 sons and wish to avoid probate and estate taxes. Is a living trust with a quit claim deed proviso a safe way to give property to children? If so, is there a waiting period?

A: Do not do this on your own and seek an elder law attorney’s advice. Many more facts need to be known. A revocable trust may be a way to pass both real and property on to your children, but it is not good in every situation. If the waiting period you refer to is the dreaded 5 year Medicaid look-back, a revocable trust will not protect assets from Medicaid. You would have to transfer them into an irrevocable trust which is quit a serious decision to make as you lose total control of the asset. If your sole goal is Medicaid issues, you can just deed your real estate and transfer your personal property to your children, and wait five years, but such transfers could have significant tax consequences on your children.

How can I put a CD in my son’s name so he would get 1/2 of it if I died or go into a home?

Q: My one son is on Social Security Disability and I want to make sure that if I should die, he would get 1/2 of the CD to help him pay his rent. My main concern is whether if I should go into a nursing home would they take all the CD or just 1/2.

A: The answer is more complicated than you probably realize and you may want to consult with an elder law attorney with whom you can share all the facts which need to be known. If your son is on SSDI, then he can receive this gift with no penalty. If he is on SSI, which is needs based government program, this gift may jeopardize his benefits. Also, it is worth considering is how this transfer will impact your eligibility for Medicaid, in the event you need to apply for Medicaid in the future. If this transfer is done within five-years prior to your Medicaid eligibility it could rule you ineligible to receive benefits to the extent of the amount of the transfer. Also, be aware that if you title the CD as joint tenants with right of survivor, he will receive the entire value of the CD upon your death. An elder law attorney may counsel you on other methods to shelter this money for him such as a special needs trust. It would probably be worth the consultation fee.