Can a Medicaid Applicant Pay Off a Jointly Held Mortgage As a Spend Down?

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?

He could probably pay off half the mortgage, but paying it all might be considered a gift to you. You will need to consult with a local elder law attorney to have a better idea of how this would be treated by your state’s Medicaid agency. Also, if you have lived together for more than two years and if your father needed care from you for at least two years, you might qualify for an exception to the usual transfer rules. Again, a local elder law attorney could advise you on this. To find an attorney near you, go here: http://www.elderlawanswers.com/elder-law-attorneys.

For more information about Medicaid’s spend-down rules, click here.

For more information about Medicaid's asset transfer rules, click here.