How to save grandmother's home while working with Medicaid in Virginia?

Medicaid isn’t going to “sell” the house. Medicaid isn’t in the real estate business. Medicaid is all about ensuring that grans assets and income are eligible for however Medicaid is administered in your state.

Your mom can likely get the caregiver Exemption or disabled heir or low-income heir exemption from Medicaid so that the house can be transferred to her. I do think you should have her do this and try to get it done in tandem with grans application and not done as an after death situation. Speak clearly with the atty as to if feasible for Medicaid for your state.

Also review with atty the paperwork on the home equity loan. The heloc will be secured lending & has to be paid and settled before the Property can be transferred to and titled to your mom’s name. I’d be cautious having grannie put the Heloc pay off on her credit card and then transferring title immediately afterwards. Realize that once gran goes onto Medicaid all her monthly income MUST go to the NH as the required by Medicaid copay. Gran will not have any of her SS$ to pay on her credit cards or any other old debts. She’s gonna default on the Credit cards. Putting a large charge on a c.c. when a person has moved into a NH and filed for Medicaid looks beyond odd. Speak carefully with the atty as to what kind of issues this may pose for you all.

But it seems there a bigger issue in that your post reads that your mom cannot on her own at all afford the property. Yes you can pay her taxes, insurance, etc. But can you realistically do this till forever? what might be a better plan is that you loan mom $ to pay off the heloc and get home transferred to your mom (& with a Medicaid Estate Recovery release) so that she can turn around and sell it ASAP and repay you and mom does her own legit spend down to quality for low income handicapped housing.

Your too late to do any creative planning for grannies Medicaid; but you do have time to plan for your mom’s future.

Simonkatz - the lawyer is your best bet to help you make arrangement so that your disabled mom won't be homeless. Maybe Medicaid will allow her to stay until she passes then sell the house.

You said your disabled mom is without income. Has she herself applied to get early SS, or supplemental income?

If for some reason, the house can't be kept, an option for housing for mom is to get her into an affordable rental housing where the rent is set based on income. Check and see if there are such places near your mom.

Another option would be to rent a room from someone's house. It's much cheaper than renting an apartment. It may be cheaper than paying the upkeep of the house, the credit card, the taxes, the insurance on the house, utilities, etc.

Let us know what the lawyer advises and whether Medicaid approves. We all learn from each other. Good luck tomorrow.

Google "Virginia Adult Child Caregiving Exemption" for more information.

https://www.payingforseniorcare.com/medicaid/caregiver-child-exemption.html
The Caregiver Child Exemption, also known as the Caretaker Child Exception and the Adult Child Caregiving Exemption, enables an elderly individual to transfer their home to their adult child without violating Medicaid's Look Back Period on asset transfers. Medicaid's 5-year look back is a rule that considers the asset transfers a Medicaid applicant has made in the 60 months prior to their application, and if found in violation, can result in a period of Medicaid ineligibility. (The one exception to this rule is California, which has a more lenient look-back period of 30 months.) The Caregiver Child Exception is an exception to the look back rule. Therefore, seniors can transfer their home to their adult child and continue to be or gain eligibility for Medicaid.
The Caregiver Child Exemption allows adult children to care for their parents at home as opposed to moving them into a Medicaid-funded assisted living residence or nursing home. It is a Medicaid-sanctioned method that enables the adult child to be compensated for their caregiving in the form of a transfer of the parent's home. The home would have otherwise have to be sold and the proceeds used to pay for nursing home / assisted living care.
To qualify for the Caregiver Child Exception, the caregiver child must live in the home with his or her parent for at least two years prior to the parent’s admittance to a nursing home or assisted living facility. In addition, the adult child must provide a level of care that prevents the senior from needing to relocate to one of the above mentioned facilities during this time period.

Copy and Paste URLs to your browser:
Virginia Department of Social Services:
http://www.dss.virginia.gov/benefit/medical_assistance/

Medicaid forms and applications:
 http://www.dss.virginia.gov/benefit/medical_assistance/forms.cgi

Long Term Care and Waiver Services:
http://www.dmas.virginia.gov/Content_pgs/ltc-home.aspx

Hope that these are helpful.  Talk with Virginia Medicaid office as they can tell you how to keep your Mom in your Grandmother's house.

is your mom going to pay off the credit card? If your mom wants to stay in the house, she should be able to under the caregiver exemption. But SHE will be financially responsible for it. She will have to pay the home owners insurance and property taxes.