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Q&A: Medicaid Planning
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My mother sold her home a year ago and moved into an independent living apartment. She had early stage dementia. The money from the sale of her home was put in a checking account in my name with my brothers as beneficiaries. I have been paying my mother's rent from this account. Did I make a mistake by putting the house money in an account in my name, even though I intend to use it for my mother's care? I was concerned with her poor judgment in managing her money and thought this would assure its protection. When my mom goes into assisted living, I intend to pay for her care with this money until it is gone and then apply for Medicaid. Will my mom incur a penalty period, even though all this money has been, and will be, used to pay for her care?
I am considering engaging an elder law attorney to help with the Medicaid eligibility review, processing, and protection planning for my mother who needs to go to a nursing home. I want to make sure I choose the right attorney for this task since the costs for these legal services can be high. When hiring an elder law attorney, what should we expect for this service and what should we expect to gain in return?
I am 58 and retired. If Medicaid has a claim on my property now, is it too late to place my property in an irrevocable trust so that any medical bills after the five-year look-back period cannot be charged to the property? If the property is in an irrevocable trust, it can be sold and the money stays in the trust. Can I direct the trustee to use that money to buy another house?
If we get a Medicaid asset protection trust in one state, what would happen if we moved to a different state? Is this kind of trust portable from one state to another?
I am 66 years old and I live in Florida. I am considering loaning my niece, who is also one of my beneficiaries, $30,000. I would prefer to gift her this amount (using the $28,000 husband/wife gift tax exclusion), but I am worried about Medicaid's look-back period of five years. If I set this loan up as an interest-only loan and stipulate that the loan is forgiven upon my death, would this count as a gift for Medicaid purposes?
All of my father's assets are in a trust. If he transfers the assets from the trust to a limited liability company (LLC) and waits five years to apply for Medicaid, will Medicaid count the funds in the LLC as an available asset and require him to spend down the funds?
I purchased a home with my father. We both live in the home and are both on the mortgage. Is my father allowed to pay off the mortgage as a way to spend down his assets to the point that he can qualify for Medicaid’s long-term care coverage?
I'm 53, disabled, and own a home. My sister, who is my heir, is worried that if I need to go into a nursing home, the state will take the house from her. I still owe her money, which she and her husband loaned me to purchase and rehabilitate the house. The plan was that either I would refinance the home and cash out enough to pay her back or she would sell the house after I passed to recoup the loan from my estate. What do I need to do to guarantee that she will be able to keep the house if I need to go into a nursing home? My health is stable right now, and I don't think that will be anytime soon. She says we have to change ownership of the house at least five years in advance to keep it from being taken. My home is my security. I don't want anyone else to own it while I live there. What can I do?
My 78-year-old mother wanted to gift her house to me, but I turned her down for Medicaid and tax reasons. She is maxed out on a reverse mortgage, but there is untapped equity of around $50,000. She doesn't want the house to go to the bank or to a Medicaid lien. She still lives in the house and cares for herself, but her health is deteriorating. Is it practical for me to buy the house at fair market value and rent it back to her? The net proceeds would cover a fair market value lease for maybe six years. Her goal is to keep the house in the family, and spend down her assets. Whatever we do, I want an arm's-length transaction for her sake and mine. Any feedback will be appreciated.
A widowed, 82-year-old woman is currently in a nursing home on Medicaid and is up for renewal of her Medicaid eligibility. The woman’s house recently sold. We need to spend down the proceeds to Medicaid’s $2,000 asset threshold. She owned the home with her children, who all received their checks from the sale of the home. The capital gains taxes due from the sale of the house will not be paid before the renewal of Medicaid. What options do we have to keep an amount to cover the taxes and not be penalized? What options do we have to spend down? Is gifting an option? This is in Wisconsin.
My 92-year-old mother has a trust that divides her assets three ways (me, my brother, and my sister) when she dies. My brother was recently diagnosed with dementia and will have to spend the rest of his life in a nursing home. Will my brother's third of the assets have to be turned over to the nursing home? If so, should my mom change her will? If not, and my mom passes away, should I put his share in a trust until he is either recovered or passes away? Thank you.
My wife and I would like to sell our large single-family home and move into a rental community. Would it make more sense to purchase another less expensive replacement home to "protect" assets rather than just sell our present home and bank the money?
My brother is 46 years old, lives in Iowa, and is on Medicaid due to his disability. He has worked full-time for over 20 years and has an employer-matched 401(k) with $20,000 in it. According to the 401(k) plan term, he is not eligible to receive anything from it until he is 59.5 years of age or stops working for his employer. Thus, the 401(k) does not count as a resource for Medicaid purposes now. However, what, if anything, can be done to prevent the money from being counted as a resource once he reaches age 59.5? I understand that he could use the money to purchase an exempt asset, like a burial plot, home, or vehicle, but are there other options? For example, can he transfer the money to a trust or some other financial vehicle to prevent it from being counted as an asset? If so, when can he do so? Can he do it now or must he wait until he is at least age 59.5?
A husband and wife sold their condo. The husband is a Medicaid recipient who moved into a nursing home a month before the sale. Can the husband transfer his share from the sale to his wife and still be eligible for Medicaid?
I know that transfers made to a trust for the sole benefit of anyone under age 65 who is permanently disabled are exempt from the Medicaid penalty period. What is considered a "disability" in regard to gift transfers?
The nursing home has initiated a Medicaid application for my mother but I have not yet been contacted. Her life insurance policy's cash value exceeds Medicaid's $1,500 resource limit. Can I still transfer ownership of the policy?
My mom would like to sell her house and move to a different state near family or possibly even move in with family. Unbeknownst to her, her son who had power of attorney at a time when she was ill, put the house into a Medicaid qualifying trust. She would like to take the money from the sale with her when she moves, perhaps using some of it to help her daughter with a downpayment. Is this possible?
My mother-in-law is on the deed to my wife's and my home. If she moves into a nursing home, will Medicaid try to claim an interest in my home? How can I prevent them from doing this? Must I transfer the interest in the property prior to her moving? She no longer earns an income and does not pay anything towards the mortgage at this point.
As the agent under a power of attorney for an elderly parent with progressive dementia, is it allowable to move any or all the parent's assets to a fund in my name or my siblings' names with the intent of paying for all costs associated with care until the five-year look back period for Medicaid has passed, with the remainder being protected by the move? Is this considered gifting, and prohibited under the provisions of the power of attorney, if it is consistent with all intents described in the will and revocable trust, and the agent under the power of attorney is also named trustee?
tags: Medicaid Planning, Medicaid Rules, Estate Planning
I am applying for Medicaid for mom, who has been diagnosed with Alzheimer's. Medicaid officials are doing a five-year look back at her finances and they want an explanation and verification for a $2,200 withdrawal three years ago, way before she applied for Medicaid and way before she was diagnosed with Alzheimer's. Can I say she gave the money to her grandchildren as gifts or should I say she bought a bed, mattress and dresser from an estate sale but I have no receipts? She has no money to hire an attorney so I am lost.
I have been caring for both my mother and father for about four years. I live in their home in Alabama. My mother has severe COPD and my father has dementia. My concern is how would it affect their jointly owned home if one of them has to be placed in a nursing home (they still have a mortgage). What needs to be done to protect the home if one or both of them have to be placed in a nursing home?
I am getting ready to apply for Medicaid for my mother for assisted living. I just read that when she passes away, Medicaid will force me to sell her home to recover their payments to her. Is that true, and if so, is there any way to protect that asset from Medicaid?
My friend has moved in with her father because he has been diagnosed with Alzheimer's. He owns his home and she has been told it would be better for him to gift the house to her than for her to inherit it in his trust. She wonders if this is true, both for tax purposes and to protect the home from liens.
We have parents in Florida. The husband is in a nursing home and the wife is still in the house, which is paid off. Can we move them to Indiana and still have Medicaid pay for the nursing home?
I (50 years old) own one-half of a Florida condominium with my parents, who are residents of Illinois. I live in the condo full time and, up until this year, they were living here part time. This property is not income-producing. How does Medicaid view this asset? Will my parents be able to continue to utilize their income to pay 50 percent of the expenses and will my parents be required to liquidate the asset in order for my father to receive Medicaid benefits? I currently cannot afford to buy them out, so that would mean I would lose my home.
Can you tell me what a "Medicaid-qualifying annuity" is?
Father is in a nursing home with Medicaid paying. Mom is still at home. If my father dies and mom is still in the home, will Medicaid place a lien on the home? Should we have a new will drawn up for my mother changing the beneficiary from my father to her children? Would the house then be hers when my father passes away, since they are co-owners, or would Medicaid be able to take all of the assets if sold, or would they only be able to take his half from the estate?
My mother gave me money in 2009. Now (2013) she is in a nursing home and needs to get Mediciad. Does that money need to go back in her account because of Medicaid's five-year lookback?
My mother went from private pay to Medicaid pay in her nursing home January 1, 2013. She now has zero money and all of her Social Security goes to the nursing home. She has a modest, unoccupied home that I maintain and for which I pay all bills. She gave me power of attorney, so legally I can sell the home. Should I sell the home and effectively turn all of the assets over for her care or wait until her death, at which point Medicaid will take the proceeds from the sale of the home anyway? Also, she is 85 and has late-stage dementia/Alzhheimer's.
I am 75 and my fiance is 82. We would like to get married, but he is afraid that if I would need to be in a nursing home down the road, he might not have enough left to cover the cost of a nursing home if he needed one as well. He is a physician and worth a little over $1 million. This potential problem is keeping us from going ahead with our wedding plans. Is there a solution for us?
Currently, my father is living at home and cared for by myself and my mother. But my mother is panic-stricken about the what ifs of nursing home care and the community spouse. My parents still owe $94,000 on their home. Both are retired teachers. My mother is afraid that if my father ends up in a nursing home, she won't be left with enough to keep the house and enough to live on. She also refuses to contact an elder law attorney because she's afraid it will cost too much. We live in Indiana. Oh, I am also on SSDI myself so I think there is some recourse there too, but I neither understand enough to direct her nor can I afford legal assistance.
My mother is currently on Medicaid. She has Alzheimer's Disease. We have been informed that she will be receiving a inheritance from a recently deceased family member. How does this work with Medicaid? I know that she will no longer will be eligible for Medicaid. But what happens with this money? Do they have the right to monitor her money? Tell us how this money can be used?
Can I Gift My Father Money to Pay His Nursing Home Bills Until the Five-Year Lookback Period Is Over?
My father gifted some rental real estate to me in the neighborhood of $350,000. I have come across the rules on the five-year lookback for Medicaid. My father has had some health problems in the past but he is doing well for now. If he should need to go into a nursing home before the five-year lookback period has ended, could I gift him the money to pay his nursing home bills until the five-year period has ended and then after the five years has ended, he could apply for Medicaid coverage?
I am hoping to buy a home and use some of the funds from the equity of my mother's home as down payment My mother would also live there and have her name on title. My question is this: Can she still receive Medicaid coverage and do the full funds of the home need to be transferred into a new primary residence for her? Also, will Medicaid try to recover the medical funds that have been used for her when her house is sold or upon her death?
We live in NJ. My dad broke his hip from a car accident, went through therapy, 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 and used the money as a downpayment on a new ranch style house for myself, my wife, and my dad. We went though an eldercare lawyer who created the deed giving my dad a life estate and my wife and myself ownership after my father's death. My name is the only name on the mortgage. My Dad lived with us for one year and four months. His dementia has really increased, and we had to put him in a nursing home. We are applying him for Medicaid. Any ideas on how Medicaid will treat the life estate?
Although my siblings and I are not in favor, my parents have health issues that might require one or both to go into a nursing home down the road. My parents have been giving us money for birthdays and Christmas (as much as $1,000 per child) and we are concerned that if they have to go to a nursing home in less than five years from now we might have to pay back this money. Are our concerns justified?
Mom went in nursing home three years ago and has been private pay. Her son has lived with her since 1992. She became unable to care for herself about two years before entering the nursing home, and her son cared for her in the home. The deed is currently in her name. Assuming she eventually qualifies for Medicaid, will her home be subject to recovery? Can she deed the home to her son? She has Alzheimer's Disease.
What are the acceptable ways of spending money for someone who is applying for Medicaid? Can it be on clothing, home furnishings or appliances? Can funeral arrangements be pre-paid? What other ways can be used without Medicaid seeing it as a cash value or asset that they can cash in on?
Son put $150,000 of renovations into home of his parents . Home is now valued at $875,000. A year ago, parents changed the deed to the house so it's owned by the parents and the son jointly with rights of survivorship. How would Medicaid handle this? Wouldn't it make sense to transfer outright to son now to start five-year look back?
tags: Medicaid Planning, Estate Planning
My parents are getting older and they want to make sure their home is not taken from them if they should end up in a nursing home and need Medicaid. I have heard they should put the house in a trust but I have also heard that gifting the house to their children is the way to go. Can you please clear up this question for me?
My mother's (second) husband has been back and forth between hospitals and a nursing home for the past month. All of their assets -- home and stocks/bonds/annuities -- are in his name only. We contacted a recommended elder care attorney for the Medicaid application/asset transfer and preservation. I understand it's a rather complicated and time-consuming process. Can you please give me a ballpark figure for these services on Long Island, and also how is the attorney's fee collected, i.e., total upfront, payment in thirds, one half, etc. Thank you!
tags: Estate Planning, Medicaid Planning, Senior Living
If my daughter pays me for 1% of the value of my property and I make a deed as joint tenant with her -- me as 99% owner and her as 1% owner -- would Medicaid consider that a transfer? Would the property be protected that way?
Suppose a person has an immediate annuity with 10-year term certain. If after 5 years, the annuitant dies and has been in a nursing home covered by Medicaid, will the second beneficiary be able to receive the next 5 years of annuity payments or do they become the property of the state?