My 81 year old mother is in subsidized housing,and wants to buy a mobile home cash,closer to my sister who is a certified CNA in Illinois. Is buying a mobile home cash considered a spend down of her assets to quality for Meidcaid,and if so,can they seize her property when she needs a nursing home,and is she eligible for Medicaid once her assets are under $2,000? Also, we would like to know is a mobile home is approved by IL Medicaid rules and is the same qualification as buying a new home.
Thank you, Sue P.
The state never "seizes" property. The state may, however, place a lien on property in an attempt to recover payment from the estate of a deceased Medicaid recipient for Medicaid services rendered.
Exactly what may be subject to lien or other methods of Medicaid Estate Recovery varies by state. Here is a link to the State of Illinois web page regarding this matter.
https://www.illinois.gov/hfs/info/Brochures%20and%20Forms/Brochures/Pages/HFS3419b.aspx
Note it states that mobile homes are not subject to lien. Also note that Illinois will otherwise only seek to recover from assets subject to probate. What this means is that the mobile home (and other assets, if any), if titled in a manner that does not subject it (them) to probate, will not be subject to Medicaid Estate Recovery.
To accomplish this your mother may wish to consider creating a Revocable Living Trust and titling the mobile home in the name of the trust. Administration of a Revocable Trust at death is not subject to probate in Illinois. In Florida we find attorneys drafting this documents for under $500. I suspect the same holds true in Illinois.
I will say that most Bar Associations have a few hour per week window where you can call and ask an attorney a question for free. If you're low income, they offer other services as well. I had my mother's will, health care proxy, POA, and authority to dispose of remains form done for free through that program.
There are exceptions, such as if your sister takes care of your Mom around the clock for at least 2 years prior of your Mom entering a facility, but your sister would need proof that the care had been similar to that of a nursing home. It all depends on the rules of that State.
Payments may also be made to buy a new, exempt asset. For example, a Medicaid applicant may purchase a new home if it meets the requirements for being an exempt home. Likewise, the applicant can purchase a new automobile if he or his spouse will drive it. For more information, see our article on
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