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Will a House My Parents Build on Our Property Be Protected from Medicaid?

  • December 29th, 2014
Q
My elderly parents would like to sell their home and use some of that money to build a small house on our property to live in. If, down the road, one of them needs to be in a nursing home or starts to run up medical bills, could Medicaid put a lien on our home? 
A

Not if your parents don’t have an ownership interest in the property. However, if they did not have an ownership interest in the property and one of them were to apply for Medicaid within five years after paying for the house, Medicaid might deny eligibility on the assumption that the payment was a gift to you. A contract with your parents granting them the right to stay in the house indefinitely could help protect against this possibility. A local elder law attorney could help draw this up.

For more on protecting a house from Medicaid estate recovery, click here.

Local Elder Law Attorneys in Ashburn, VA

Evan Farr

The Law Firm of Evan H. Farr, P.C.
Fairfax, VA

John Laster

Law Offices of John L. Laster
Falls Church, VA

Margaret O'Reilly

Margaret A. O'Reilly, PC
Herndon, VA

For more on how to prepare when elderly parents move in with adult children, click here.


Last Modified: 12/29/2014

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