Elder Law Answers
How Can My Parents Protect Their Savings When They Apply for Medicaid?
When they were working, my parents saved $50,000 for any major health expense they might have. Currently they live with me...
Read moreCan My Parents Sell Their Home and Pay for Upgrades to Our Home Without Triggering Medicaid's Transfer Rules?
- June 19th, 2015
Q
Both my elderly parents need extra help. We are going to sell their house and move them onto my property. We will need to build an addition in order to have space for them. Can they pay for these renovations out of profit from the sale of their home and not have it be subject to the Medicaid laws? The property will be in my name.
A
The answer to both questions is yes, but the payments need to be structured so that your state Medicaid agency doesn’t treat them as gifts to you causing up to five years of ineligibility for benefits. I strongly recommend that you work with a local elder law attorney to set this up so that it passes muster.
For more on Medicaid's asset transfer rules, click here.