We can not find answers about what happens to sibling's Medicaid? We would like to remove sibling from receiving 1/3 of property. Can this be done? We would have to sell a piece of property to give my sibling their share....which I believe would then go to pay siblings Medicaid.
It's not fair to my other sibling and myself who are wanting to keep the property in the family.
Does anyone have any advice?
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Does sister live on the home? This may help. If this has been her residency she maybe able to stay and a lean put on the property.
I think you may need a lawyer who knows Medicaid.
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But as Medicaid is an “at need” program across the board, so her being paid her 1/3 share of the value of mom’s house, will be considered income to her the month received and an assets afterwards. It’s gonna take her over Medicaid income limits, unless it can go into a special needs trust or she has disease / disability that could fit into ABLE act account for the $.
the Estate property was your mom’s, so if you’ve opened probate, it’s an asset of mom's Estate. It hasn’t yet been distributed, it’s still “owned” by the Estate. Whomever is the Executor can push off doing a distribution if need be. My experience is only if mom died having secured creditors (like she still had a mortgage) do you have to do something quickly. Executor can take time. This gives you all time to plan how to deal with property transfer so that your sibling benefits best. I’d ask your probate attorney for names of estate planning attorneys or disability rights atty if siblings on Medicaid due to disability.
since you want to keep the house, I’d really really suggest you get it appraised. This way you have a solid, hard figure both to enter into probate as asset value but also to use for planning the split to the penny.
Im not trying to be all sassy but If your mom did her will to have 3 kids and her cat as equal heirs to her Estate, that is what needs to happen. What’s in the Will is beyond difficult to change.
As Rosered6 posted (fabulous post btw!), the heir can opt to disclaim an inheritance but if Medicaid is involved for a heir that will be considered an asset to them whether or not they take it. I had this situation as Executor for an aunt & although Medicaid was not involved the paperwork to do it was daunting. When Executor does a distribution they have to file it in probate court and nowadays need to send out a w9 request to those getting distribution & so do an irs tax filing for the amount distributed. It will show up eventually.
Whitehouse - Your post reads that mom has a home & other property..... if that’s it, whomever is named Executor in the Will is going to need $ to administer the Estate. It’s not just a home that maybe you could do small Estate affidavits or muniment of title on. Unless mom left a good bit of $$$ or had a life insurance policy with $ that has the Estate Of as her beneficiary, assets are going to have to be sold to pay for Estate costs eventually. Or Executor pays out of thier own purse or wallet and then files those costs as administrator claim against the Estate. What you all are abt to be hit with is likely significantly higher property taxes as that home now no longer under homestead exemption. Could be HUGE increase. Property taxes do need to be paid; tax assessor will place it up for tax sale if not. You don’t want to go there.
Really please please before this goes on into 2020 try to meet with probate atty to see what needs to happen to be able to make things timely transfer for everybody’s best interest & wallet.
1) Wills can't be rewritten after death.
2) People on Medicaid typically can't disclaim inheritances.
3) The inheritance probably will cause the sibling on Medicaid to go over the asset limit.
4) If the sibling on Medicaid goes over the asset limit, the sibling probably will be ineligible for Medicaid until the sibling is again under the asset limit.
5) The sibling presumably will want to continue or resume receiving Medicaid benefits.
6) A special needs trust might be a possibility, but the rules for these are precise and stringent. Definitely not a DIY project; a lawyer or an organization that specializes in this area of law should be consulted about whether an SNT is a possibility and how to set one up.
7) A buyout probably will be the best available option, even if less than desirable for the other siblings.
Good luck. Please make sure your sibling on Medicaid is protected.
If theres more than a paid off house or car, it’s not likely to ever be simple filing, like a small estates affidavit. They will need to do an Assets of the Estate filing in PC with documentation as to how value derived. It’s not simple. Can you DIY it, maybe? but you have to be very paralegal level courthouse savvy. To me it’s too risky to DIY. I’ve been Executor x3, know more than I ever thought I needed to know, have done tax sales & there’s no way I would ever, ever DIY an estate unless it was only a single low value fully owned homestead as the only asset and going to a single heir who I had a great relationship with before all this.
You and your other sibling might have to do that in order to keep the property. The money that you pay to your sibling will most likely affect your sibling's ability to be on Medicaid until she uses all of the money that you pay her for her share/percentage of the property.
I guess you would have to speak to an attorney about changing a will.
Lots of blank and spaces to fill in here. Mom divided the property equally. Why cut out your sibling? How does sibling being on Medicaid effect the issue?
How large is the property? You said you would have to sell a piece of it. Why don’t you want to sell it if mom wanted the property split up and you and your other sibling can keep remaining portion for yourselves?