Should I have my mom do a quitclaim deed on the home so they cannot take the home away from me in the case that she has to go into a convalescent home?
My mom is 94 years old and just recently had a stroke. She just came home from rehab, but I have I been caring for her for the past five years. This is where I resign and quit my job so I can care for my mom.
KatieKate is exactly right, and that's what I'm dealing with right now. MERP (Medicaid Estate Recovery Program) requires that I provide all kinds of red tape paperwork to prove that I was Mom's caregiver for 2 years before the NH came into the picture, plus to prove the value (or lack thereof) of the house.
Every state handles this differently, but here in Michigan, that's how it goes - they either make you sell the house and give them all the money from the sale when the owner dies, or they defer recovery until YOU, the caregiver dies or leaves the house. If you die, your heirs will be forced to sell the house and turn the money over to the state. If you leave the house, you have to sell it and turn the money over to the state. The only chance for me to keep the house is if they waive recovery based on the low value of the house. It's in poor condition and requires a huge amount of expensive repairs. If they waive recovery, then the house is mine to do with what I wish. So....this week I will turn in all the paperwork (finally) and see what happens.
The elder attorney I hired a while back told me that a lien would still be placed on the home...but that an adult child living in the home and providing in home care for the preceding 2 years would be permitted to remain. But, once vacated, the lien would mean the sale would provide proceeds for the elder care...or if deceased...to reimburse medicaid.
Just wondering- do you have any siblings that might make a fuss about you getting the house? Just considering all the angles that might cause a problem for you down the road.
If she signs the house over to you now, Medicaid views it as a gift. Bad news.
Apply for Medicaid right now. You mom is allowed to own a house without it being considered an asset in terms of eligibility. Medicaid offers several good benefits for persons who are still in their homes, such as paying medicine co-pays, perhaps approving money for house cleaning/laundry help, maybe an aide for a certain number of hours that could be respite for you. So, good. Mom stays at home and has in-home benefits for a while, and then she really does need a nursing home. Good again. She already has Medicaid coverage so the financial piece is easier.
(All this while she still owns the house.)
Then she dies. The state wants to recover its expenses from the sale of the house. But wait! There may be an exception here. Her daughter lives in it, and she took care of the Medicaid recipient for more than 2 years. That saved us money because it kept her out of the nursing home longer. Daughter can keep the house. As Jessie says, exactly how this happens may vary from stat to state, but you won't be out in the street in any state.
It seems that you have consulted an Elder Law specialist and you are not willing to take that advice. Do NOT accept the large gift of a house from your mother and then try to apply for Medicaid for her. Ain't gonna work. That "gift" would create a big penalty. But if you do things in the proper order, you will get the house (as you deserve).
I did get advice from a elderly lawyer and that was to put my mom in a home get her on Medicaid and then quit claim the house over to me because I was her caregiver for over two years I don't want to put my mom in a home right now but I do want her to sign the house over to me because they been her caregiver for five years and now with the stroke it's even more intense
Just a clarification - it's not MediCARE that goes after the estate for recovery, it's MediCAID. Not being nit-picky, just explaining so you use the right terminology when discussing it with an attorney or family members.
I am living through this right now with my parents' home - it was not protected and I'm dealing with Medicaid Estate Recovery Program (MERP), having to get appraisals, quotes and all kinds of paperwork together to prove to them that I should be able to keep the house.
To avoid that, do as others have mentioned here and get to an elder law or estate law attorney ASAP. At your mother's age and with her health conditions, you need to get this done as soon as possible. Don't wait, thinking you have time to do it. I kept putting it off because I didn't have the extra money to spend on doing it - and then Mom passed away very suddenly at age 76. Not trying to be ghoulish or morbid here, just stating facts - get this handled as soon as possible, or you will definitely regret it later.
I agree with JessieBelle above, quit claim deeds are messy.... like with Mom qualifying for Medicaid, and when you sell the house there could be Capital Gains Taxes as the tax bases will be based on how much your Mom paid for the house when she bought it. It's much better to inherit the house.
If your Mom does need to be placed in a skilled facility and Medicaid [different from Medicare] will be paying for everything, Medicaid would want to be reimbursed as Medicaid is funded with taxpayers money and some Federal funds. There are exemptions.
As others have mentioned, make an appointment with an Elder Law Attorney who will guide you.
I don't like quit claim deeds. They are messy. Talk to a lawyer experienced in elder care to see if a penalty-free transfer would be possible under the circumstances. That may be your best way to go.
If your mother does go on Medicaid and you have cared for her full-time for over two years, you could qualify for a caregiver exemption from Medicaid recovery. States differ in how they handle this. Sometimes the caregiver is granted the house outright. Sometimes they can live there until they decide to move or die -- a life estate. Find out how your state handles the exemption and it could give you an idea what to do about transferring the house.
Yes I am just wanted to know if they can take the house away from me I've been caring for her for five years now it's a little bit more intense caring because of the stroke if I cannot take care of her any longer and have to put her in a home can Medicare take The home away from me and should I have her quit claim the house to me now
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Every state handles this differently, but here in Michigan, that's how it goes - they either make you sell the house and give them all the money from the sale when the owner dies, or they defer recovery until YOU, the caregiver dies or leaves the house. If you die, your heirs will be forced to sell the house and turn the money over to the state. If you leave the house, you have to sell it and turn the money over to the state.
The only chance for me to keep the house is if they waive recovery based on the low value of the house. It's in poor condition and requires a huge amount of expensive repairs. If they waive recovery, then the house is mine to do with what I wish. So....this week I will turn in all the paperwork (finally) and see what happens.
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If she signs the house over to you now, Medicaid views it as a gift. Bad news.
Apply for Medicaid right now. You mom is allowed to own a house without it being considered an asset in terms of eligibility. Medicaid offers several good benefits for persons who are still in their homes, such as paying medicine co-pays, perhaps approving money for house cleaning/laundry help, maybe an aide for a certain number of hours that could be respite for you. So, good. Mom stays at home and has in-home benefits for a while, and then she really does need a nursing home. Good again. She already has Medicaid coverage so the financial piece is easier.
(All this while she still owns the house.)
Then she dies. The state wants to recover its expenses from the sale of the house. But wait! There may be an exception here. Her daughter lives in it, and she took care of the Medicaid recipient for more than 2 years. That saved us money because it kept her out of the nursing home longer. Daughter can keep the house. As Jessie says, exactly how this happens may vary from stat to state, but you won't be out in the street in any state.
It seems that you have consulted an Elder Law specialist and you are not willing to take that advice. Do NOT accept the large gift of a house from your mother and then try to apply for Medicaid for her. Ain't gonna work. That "gift" would create a big penalty. But if you do things in the proper order, you will get the house (as you deserve).
I am living through this right now with my parents' home - it was not protected and I'm dealing with Medicaid Estate Recovery Program (MERP), having to get appraisals, quotes and all kinds of paperwork together to prove to them that I should be able to keep the house.
To avoid that, do as others have mentioned here and get to an elder law or estate law attorney ASAP. At your mother's age and with her health conditions, you need to get this done as soon as possible. Don't wait, thinking you have time to do it. I kept putting it off because I didn't have the extra money to spend on doing it - and then Mom passed away very suddenly at age 76. Not trying to be ghoulish or morbid here, just stating facts - get this handled as soon as possible, or you will definitely regret it later.
If your Mom does need to be placed in a skilled facility and Medicaid [different from Medicare] will be paying for everything, Medicaid would want to be reimbursed as Medicaid is funded with taxpayers money and some Federal funds. There are exemptions.
As others have mentioned, make an appointment with an Elder Law Attorney who will guide you.
If your mother does go on Medicaid and you have cared for her full-time for over two years, you could qualify for a caregiver exemption from Medicaid recovery. States differ in how they handle this. Sometimes the caregiver is granted the house outright. Sometimes they can live there until they decide to move or die -- a life estate. Find out how your state handles the exemption and it could give you an idea what to do about transferring the house.