First of all, the “Medicaid” you refer to, is it LTC Medicaid aka program that pays for custodial care for those “at need” in a NH??? So it is this specific Medicaid program??? And not Medicaid for health insurance or Medicaid for a community based program like PACE day centers??
which Medicaid is beyond super important because if it was LTC Medicaid for your mom that was done, that one has very specific “at need” requirements for her monthly income and overall assets in order for her to be eligible financially. With all but of a handful of states, it’s $2,742 maximum in mo income AND a max of $2,000 in nonexempt assets, for an individual, excluding a home as an exempt asset. If she transferred her home to you after she got approved for LTC Medicaid that would be a problem as she “gifted” you an asset (her home) and once Medicaid finds out she will become ineligible.
Is this what the attorney did??
if so it would, imho, it not be a lien that you need to be worried about but imho more that your mom will become ineligible for LTC Medicaid. NH will get notified of this and Medicaid will clawback any payments make to the NH. Mom will become private pay resident AND will have likely a substantial past due bill as well. NH will fully expect you or someone in the family to pay this bill and sign a financial responsibility contract in order for mom to continue to stay there. NH can issue a 30 Day Notice to mom (to move out).
Please understand that for LTC Medicaid, If they own a home - that was their primary residence / homestead exemption - that can continue to be an exempt asset for their lifetime if under 600/750K in value even tho now living in a NH. But they have to keep their ownership of it, then only after death, the house reverts to nonexempt asset and subject to an attempt by the State to recoup Medicaid costs paid via estate recovery aka MERP. This is kinda the “lien” you wrote of. HOWEVER there are exceptions & exclusions & a cost benefit requirement to MERP, plus heirs can open probate, but these are after death procedures.
For example, If you were living in the home as a caregiver for her and did this for 2 years FT prior to her entering a NH - that you can document kept her out of a NH for those 2 years - then you can file for caregiver exemption to MERP. It - in my understanding of the system - stays in her name until MERP happens & when the exemption process starts. This is how it seems to run. But maybe - maybe? - your State allows for caregiver exemption to be filed at the same time as the LTC Medicaid application??
Personally I’d be concerned if all this was done after her application - based on what she owned at the time, like the house, listed on that application - was approved. That the attorney deliberately waited for her to be approved for LTC Medicaid then did the title transfer (to you). LTC Medicaid does not allow for unreported changes in their resources. So was the transfer reported to her caseworker? or submitted in writing to LTC Medicaid? If attorney said they did it, you want a copy of all correspondence on everything regarding all this and then verify it with her Medicaid caseworker.
Im guessing you have heard/read stuff like this is not allowed by Medicaid and now you are worried, and why you posted, So… Is this attorney CELA level of elder law attorney? You were a FT with no other job caregiver living in the home with your mom 2 full years before mom entered the NH? Was the transfer done via a Quit Claim Deed? Is your mom totally competent and cognitive to go to a law firm’s office, fully understand & sign off on this type of paperwork and mom did this in the presence of 2 non family witnesses present? OR was this transfer done another way, perhaps using a POA signature rather than mom directly signing the paperwork? Are you her POA?
Out of curiosity, what was last tax assessor value on the property?
You are spot on. Medicaid became aware in years past that they couldn’t recoup their money from recipients’ homes because many of those recipients were transferring their deed to their loved ones before they went into the Medicaid NH facility. In 1982, TERFA was passed to allow states to use the option of placing liens on Medicaid beneficiaries’ homes to prevent them from transferring the deed to their loved ones in order to avoid paying estate recovery.
It’s unfathomable to me that a lawyer would encourage a client to do this when taxpayers’ dollars are involved and Medicaid needs to recoup their money in order for their program to continue.
The OP has a tough battle ahead with this one as I’m sure that once Medicaid gets wind of this scheme they are going to come after him to recoup their money.
We have not enough details here, because of course what you say about an attorney putting Mom's house in your name would be entirely illegal, and wouldn't be much of an attorney to know this. So you are now left to find out exactly what has been done here and the legalities of it. Looks like time now for a REAL attorney, and a way to work out this mess. Can't imagine what has happened here, but sure doesn't sound good.
I know of six different families that did this sort of asset transfer to allow a parent to go on total government assistance. To me this is amoral as it transfers the support burden to the taxpayers. There are not enough investigators to suss out such practices. Asset hiding should be prohibited totally. Whether it relates to hiding parental assets or using offshore banks. Amoral in the strongest sense of the word.
Not sure if this should have been done. Was the house included on the application, if so, I don't think the lawyer had the right to put the house in ur name. Medicaid has rules when a house is involved.
You really had nothing to worry about. You could have remained in the home. When Mom died, the lien would have been made on her half of the house. It would only have needed to be satisfied at time if sale and only on Moms half. You could have lived in it till your passing. If you had cared for Mom for two years at least with both u living there, there may have been another type of agreement between u and Medicaid. One poster said Medicaid allowed the house to be put in her name.
Always see an Elder Lawyer who has been trained in Medicaid law.
your attorney should be able to answer that question. Each state administers program different. By moving asset, you may have gifted assets which will show up and may cause loss of Medicaid eligibility. Call attorney today!
To me, a big reason why Medicaid is so good at this is because the applicant basically signs off to allow for Medicaid to have an “all access pass” to them and their spouse. Medicaid can do this at will and whenever.
The PARIS matching that Medicaid & other social service programs routinely do plus if linked to state title search is flat out amazing database X reference. I don’t think folks realize it is just a matter of a few keystrokes to have info surface. And surface it will eventually.
I read ur last post. What ever this lawyer did, either put u as a joint owner or full owner, it was wrong. When a person goes on Medicaid, the house is an exempt asset but Medicaid has a lot to say with what happens to it. First, if sold, must be sold at Market Value. If there is a co-owner they get 50% of the proceeds and the other 50% goes towards the recipients care.
You need an elder lawyer to straighten this out for you. Even if your a POA, I don't see how a lawyer thought it was OK to place you on the deed. As POA you can sell the house to help pay for the principles care but you can't profit from being a POA. Putting u on the deed means you have profited.
Prior question says parent is in nursing home. Chris asked about selling house last July after Medicaid application submitted by NH which may have listed the house
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So it is this specific Medicaid program??? And not Medicaid for health insurance or Medicaid for a community based program like PACE day centers??
which Medicaid is beyond super important because if it was LTC Medicaid for your mom that was done, that one has very specific “at need” requirements for her monthly income and overall assets in order for her to be eligible financially. With all but of a handful of states, it’s
$2,742 maximum in mo income AND a max of $2,000 in nonexempt assets, for an individual, excluding a home as an exempt asset. If she transferred her home to you after she got approved for LTC Medicaid that would be a problem as she “gifted” you an asset (her home) and once Medicaid finds out she will become ineligible.
Is this what the attorney did??
if so it would, imho, it not be a lien that you need to be worried about but imho more that your mom will become ineligible for LTC Medicaid. NH will get notified of this and Medicaid will clawback any payments make to the NH. Mom will become private pay resident AND will have likely a substantial past due bill as well. NH will fully expect you or someone in the family to pay this bill and sign a financial responsibility contract in order for mom to continue to stay there. NH can issue a 30 Day Notice to mom (to move out).
Please understand that for LTC Medicaid, If they own a home - that was their primary residence / homestead exemption - that can continue to be an exempt asset for their lifetime if under 600/750K in value even tho now living in a NH. But they have to keep their ownership of it, then only after death, the house reverts to nonexempt asset and subject to an attempt by the State to recoup Medicaid costs paid via estate recovery aka MERP. This is kinda the “lien” you wrote of. HOWEVER there are exceptions & exclusions & a cost benefit requirement to MERP, plus heirs can open probate, but these are after death procedures.
For example, If you were living in the home as a caregiver for her and did this for 2 years FT prior to her entering a NH - that you can document kept her out of a NH for those 2 years - then you can file for caregiver exemption to MERP. It - in my understanding of the system - stays in her name until MERP happens & when the exemption process starts. This is how it seems to run. But maybe - maybe? - your State allows for caregiver exemption to be filed at the same time as the LTC Medicaid application??
Personally I’d be concerned if all this was done after her application - based on what she owned at the time, like the house, listed on that application - was approved. That the attorney deliberately waited for her to be approved for LTC Medicaid then did the title transfer (to you). LTC Medicaid does not allow for unreported changes in their resources. So was the transfer reported to her caseworker? or submitted in writing to LTC Medicaid? If attorney said they did it, you want a copy of all correspondence on everything regarding all this and then verify it with her Medicaid caseworker.
Im guessing you have heard/read stuff like this is not allowed by Medicaid and now you are worried, and why you posted, So…
Is this attorney CELA level of elder law attorney?
You were a FT with no other job caregiver living in the home with your mom 2 full years before mom entered the NH?
Was the transfer done via a Quit Claim Deed?
Is your mom totally competent and cognitive to go to a law firm’s office, fully understand & sign off on this type of paperwork and mom did this in the presence of 2 non family witnesses present?
OR was this transfer done another way, perhaps using a POA signature rather than mom directly signing the paperwork?
Are you her POA?
Out of curiosity, what was last tax assessor value on the property?
It’s unfathomable to me that a lawyer would encourage a client to do this when taxpayers’ dollars are involved and Medicaid needs to recoup their money in order for their program to continue.
The OP has a tough battle ahead with this one as I’m sure that once Medicaid gets wind of this scheme they are going to come after him to recoup their money.
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You really had nothing to worry about. You could have remained in the home. When Mom died, the lien would have been made on her half of the house. It would only have needed to be satisfied at time if sale and only on Moms half. You could have lived in it till your passing. If you had cared for Mom for two years at least with both u living there, there may have been another type of agreement between u and Medicaid. One poster said Medicaid allowed the house to be put in her name.
Always see an Elder Lawyer who has been trained in Medicaid law.
I will say this, having worked with many government agencies, Medicaid is the most organized and will follow through if they see a fraudulent act.
Get sound legal advice now.
The PARIS matching that Medicaid & other social service programs routinely do plus if linked to state title search is flat out amazing database X reference. I don’t think folks realize it is just a matter of a few keystrokes to have info surface. And surface it will eventually.
You need an elder lawyer to straighten this out for you. Even if your a POA, I don't see how a lawyer thought it was OK to place you on the deed. As POA you can sell the house to help pay for the principles care but you can't profit from being a POA. Putting u on the deed means you have profited.
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