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| We live in NJ. My dad broke his hip from a car accident; went through therapy and walking again, came home to his house and fell down his steps and broke it again. His house had too many steps so he could no longer live there, We sold my Dad's house; used the money as a downpayment on our new ranch style house; for myself, my wife and my dad. We went though a eldercare lawyer and they created the deed stating mine and my wifes name; and my dad's name with a life estate. My name is the only name on the mortgage. My Dad lived with us for 1 year and 4 months; his dementia has really increased and we had to put him in a nursing home. We are applying him for medicaid.. The 2005 DRA that President Bush signed states:
(d) INCLUSION OF TRANSFERS TO PURCHASE LIFE ESTATES.—
Section 1917(c)(1) of such Act (42 U.S.C. 1396p(c)(1)), as amended by subsection (c), is amended by adding at the end the following: ‘‘(J) For purposes of this paragraph with respect to a transfer of assets, the term ‘assets’ includes the purchase of a life estate interest in another individual’s home unless the purchaser resides in the home for a period of at least 1 year after the date of the purchase.’’. We applied my dad for Medicaid about a month ago; and still no word. Has anybody used a Life Estate before? I know that they use the life expentency table with the life estate, Any ideas on how medicaid will treat the life estate? Thanks!
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| You should be okay. But some states have been denying applications despite the law. To get advice on what is happening these days in New Jersey, you will need to go back to the attorney who helped you set up the plan in the first place. Good luck.
Harry S. Margolis
ElderLawAnswers
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We found out that the life estate is LEGAL; and Medicaid can't touch that part of the money. Medicaid uses the life expectancy table to determine his portion of the life estate. Nothing official yet; but was told that he may not qualify for medicaid for up to 8 months.
We had a caretaker contract created; stating that my dad was paying for us to take care of him. Medicaid told me that they dont accept this. We are hoping that this would qualify him for Medicaid.
I can't get a clear answer: What happens if my Dad don't qualify for Medicaid for 8 months? How do we pay for his care. In his condition; it would be unsafe for him to live at home! His dementia is really progressing fast.
What will the nursing home do to get the money for the 8 months of care. Can the nursing home put a lien on the house? We can't sell my house; until my Dad passes. We don't want to sell the house. I am paying the mortgage on the house; and this is where we live.
Thanks;
Joe
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| I set up a caregiver's agreement through my elder lawyer and it cost me $1200; it is specifically laid out with details of the care my mom is getting from her sons on a bimonthly basis. I have heard on this board that this is a legal document and medicaid accepts this. So please, Mr. Margolis confirm this. Also, who takes care of the alzheimer's patient if they are denied medicaid for months???? Does the person become homeless with dementia? Very frustrating.
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I did the same exact thing; I had my eldercare lawyer create the "Care Taker Contract" The person from social services here in NJ; who is doing my case told me "off the record" she said....that other people have tried to use the "Caretaker Contract"; but nobody has won it.
I have a letter from my Dad's primary doctor stating; that if it wasn't for mine and my wife's care of my dad; he would of been placed in a nursing home 1 1/2 years earlier. I kept my Dad out of the nursing home and saved Medicaid lots of money.
Can they kick my Dad out for not paying? Any information about "Undo Hardship" that may be related. What else can I do?
Thanks for the help,
Joseph
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| Joseph, I am in NY - I wonder if that is different as far as the Caregiver's Agreement. I hope Mr. Margolis can respond to this. I remember he recommended getting a Caregiver's Agreement in our type of situation. This is terrifying and my mom's payments are monthly to my brothers who give my alzheimer's disease mom extra care that would cost thousands otherwise. Joseph, what did your lawyer say???? maryann
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When we got the caretaker contract created; my lawyer said that it was grey law. There was no law that said it was illegal, but nothing said that you can't do it.
I was reading on-line that the state of Michigan changed the law to make it not legal.
[url=http:///www.formyplan.com/articles/2008/08/13/home-caretaker-personal-care-contracts/][/url]
I would love to find some people that have used it before.
Have you found out anything else about it? 
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| Joseph, I sent an email to my lawyer with part of your post - I did a search on line and it seems like lawyers are doing it and it is supposed to be okay - if you type in caregiver agreement in google - many families are doing it - my brothers are claiming the money as income so how can medicaid look at it as a gift?? Maybe NJ and NY differ in the laws. I'll let you know when I hear from my lawyer. I also want to know what to do if you are denied entrance to a nursing home for a number of months but you need nursing home care - do you get thrown in the street????? So annoying what we have to go through to help our parents. MaryAnn
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