Mom wants me to take over small mortgage left on her home. I've been told I can't do that b/c she can't sell or give assets. Is this true?
I have been told I can not do that due to she can't sell or give any assets because Medicaid will take her house if she has to go into nursing home at some point. Is that true? I was told she would have had to put me on the house 5 years ago.
Medicaid cannot "take" property from anyone. The expectation is that if your Mom can continue to live in her home Medicaid will pay for aids and caregivers. If she needs to move to a senior facility the property will need to be sold and the funds used to pay her fees. When that money runs out THEN, if she is in SNF care, Medicaid will pay the fees.
Please note that Medicaid will not pay for AL, only SNC. I found that some ALs in Ohio might accept the Medicaid waiver if the person has lived there a minimum of 2 years.
It's complicated so consult someone at Medicaid in your mother's state for details, each state has different rules. I suspect if you start paying the mortgage you might not get your money back when you apply.
This is not how Medicaid works. The home is an exempt asset and does not need to be sold when the person enters LTC. Medicaid doesn’t arbitrarily paid for caregivers for everyone who can stay home either. If that was true this forum wouldn’t be full of worn out family caregivers.
Talk to a lawyer in her area that specializes in family law - or better yet, elder law. The lawyer will give you the best advise. To get your best answers for your money, bring in documentation about the mortgage and anything about your mom's Medicare/Medicaid status.
‘Taking over the mortgage’ doesn’t mean that you get the house. It just means that the mortgage on it is paid off. It’s either a gift from you to mother, or that you pay off the bank mortgage, and mother owes the money to you instead of to the bank. This sounds a bit like the old misunderstanding that ‘the bank owns it all’, when in fact mother owns it, with a debt to the bank. I suspect that you don’t understand the legalities here. And that’s without the Medicaid complications!
Not sure I understand the question. You will be paying off Moms house? I see no problem in paying off Moms mortgage but you may not be able to recoup the money if she sells the house.
If ur looking at maybe Medicaid within 5 yrs, her handing over the house to you or putting u on the deed now could cause problems with Medicaid. If Mom goes on Medicaid, the house is not counted as an asset. You being a resident/caregiver maybe able to stay in the house as long as u can pay the bills, taxes and upkeep. When Mom passes, Medicaid will put a lean on the house. As a resident, you can probably stay in the house. But if you leave it or sell it, Medicaid needs to be paid. If you die, the lean will then need to be satisfied. Probably by selling the house.
As said, you may want to talk to a lawyer VERY well versed in Medicaid.
I would highly recommend a consult with Elder Law atty to confirm, as Medicaid rules do vary from state to state. Also, you mention NH, which if she qualifies for would be something Medicaid can cover, but in general it will NOT cover AL or MC, only the medically necessary care (which excludes room and board, obviously the most expensive part of AL and MC!)
It does discuss the transfer of a home to a live-in adult child who is providing care and the exclusions. It does say the adult child would have to have lived there at least 2 years and provide a given amount of care (I only skimmed the article.) I would recommend reading the whole thing (discusses tax implications before and after transfer, death, and other issues.) It does state:
"While all 50 states honor this exception, it’s important to note that some states take a stricter approach than others to the Child Caregiver Exception. Rules and documentation may vary based on the state."
Consult to get appropriate legal advice is also still recommended - these kind of issues are not DIYs!
It is correct that her house and other assets have to be out of her name for five years for her to qualify for Medicaid. However, if you are her POA and her caregiver you can charge for these services and be paid. It will have to be done in writing though. Also a person may gift money or assets under $5,000 to family.
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Please note that Medicaid will not pay for AL, only SNC. I found that some ALs in Ohio might accept the Medicaid waiver if the person has lived there a minimum of 2 years.
It's complicated so consult someone at Medicaid in your mother's state for details, each state has different rules. I suspect if you start paying the mortgage you might not get your money back when you apply.
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If ur looking at maybe Medicaid within 5 yrs, her handing over the house to you or putting u on the deed now could cause problems with Medicaid. If Mom goes on Medicaid, the house is not counted as an asset. You being a resident/caregiver maybe able to stay in the house as long as u can pay the bills, taxes and upkeep. When Mom passes, Medicaid will put a lean on the house. As a resident, you can probably stay in the house. But if you leave it or sell it, Medicaid needs to be paid. If you die, the lean will then need to be satisfied. Probably by selling the house.
As said, you may want to talk to a lawyer VERY well versed in Medicaid.
This was an interesting and informative site:
https://www.payingforseniorcare.com/medicaid/caregiver-child-exemption#:~:text=The%20Caregiver%20Child%20Exception%20is,or%20gain%20eligibility%20for%20Medicaid.&text=(As%20a%20side%20note%2C%20Medicaid,board%20portion%20of%20assisted%20living.
It does discuss the transfer of a home to a live-in adult child who is providing care and the exclusions. It does say the adult child would have to have lived there at least 2 years and provide a given amount of care (I only skimmed the article.) I would recommend reading the whole thing (discusses tax implications before and after transfer, death, and other issues.) It does state:
"While all 50 states honor this exception, it’s important to note that some states take a stricter approach than others to the Child Caregiver Exception. Rules and documentation may vary based on the state."
Consult to get appropriate legal advice is also still recommended - these kind of issues are not DIYs!
If Igloo answers, listen to her advice. She is the only person I would listen to.