Mom passed and they are saying I have to. I don't have money for repairs and it would never pass any code for sale. They are telling me I have to make it sellable, but it's not my home and she passed. I don't have the money for an attorney either. What do I do?
This article states:
..." there will be no recovery made against the exempt home of a Medicaid recipient (i.e. it will not have to be sold to pay back the state)" ...if
"A son or daughter (of any age) of the Medicaid recipient lived in the house for at least two years immediately prior to the date the recipient was admitted to the nursing home, has continuously lived in the house since then, and provided care to the Medicaid recipient prior to their placement, which permitted them to delay entering the nursing home."
https://www.agingcare.com/articles/medicaid-repayment-of-nursing-home-estate-recovery-150497.htm
You sound as though you are grieving and tired. If you don't have the energy to follow up on this, maybe your sisters do? Can you contact Legal Aid? The home sounds like it is eligible for this exemption and you sound like you could use the money for your future.
In my not an attorney experience the problem is that You do NOT have legal standing to sell the property.... it’s still in your dad and your mom’s name, correct? And to make it more complicated, your dad died before mom and it never got titled to just her name after his death, right? Probate has not been opened for either of them, right? And neither has any sort of small estates affidavit or muniment of title action been filed at the courthouse? If all this is right, then there’s nobody who has legal standing to represent or sell assets of their estates.
Any traditional property sale will involve the buyer getting a mortgage; and that means that the mortgage lender will require title insurance. To get title insurance a title co is hired to do a deep dive on the chain of all documents filed on the house to ferret out any issues in ownership, liens on property or workman’s claims as well as establishing that any old mortgages or HELOCs are cancelled or “struck”. There will be “clouds on the title” if there’s anything amiss and it can kill a sale or delay it. If you sign off on the listing agreement with a Realtor, imo you absolutely have to write in the agreement that there’s the potential for Medicaid claim/lien & probate actions needed for sale to be done (due to your not having legal standing to sign off on any paperwork as your not an owner and not yet an executor). I think you’ll find it will be extremely hard to sell the house as the situation is now. My be one of those “ugly property” outfits would buy it but I’d bet they would pay under the land value by 25% and put all paperwork costs onto the “seller”. If payment is via a check in your parents names (as it’s still in both their names), you can’t deposit it until you get a bank account opened as “estate of” and with a new Fed ID # issued to it.
I mention all this as it sounds like you’re overwhelmed. Theres a lot of potential pitfalls in doing anything unless you are willing to legally file to take charge of this hot mess of a monkey and become administrator or Executor for their estates and front the $ to do this and do it for however long it takes in probate. And it’s not a cute little Capucin monkey living in a modern beach condo in Gulf Shores, AL but an old matted Orangutan in an even older house with years of delayed maintenance that’s your monkey. If you can’t do it, and your siblings can’t do it, then mail the keys via certified mail with the RRR card to the state and walk away.
sixty years ago all of the building codes were much less restrictive. don't forget local zoning ordinances that would have to be met as well.
If you know a general contractor or engineer they might be able to give you an update on about how much it would cost in your area to get the house ready for sale.
this information could be used by you to argue against doing anything more than just walk away.
Here are a couple of examples:
Kitchen sink has a leak. If yes here is what could be a potential expense:
1. repair leak.
2. repair cabinet. Did leak go thru to flooring?
3. repair flooring. How old is floor covering? Does it contain asbestos?
4. cost of asbestos removal?
( same can apply to most any room)
5. upgrade electrical outlets new the sink with ground fault recepticles.
6. will the main breaker box have to be upgraded to comply with code changes?
A simple leak in the kitchen sink can run into several thousand dollars.
Better the state sell it as a fixer upper.
Best of luck.
When Medicaid Estate Recovery planning was being done it was early this millennium as it was signed into Bush era Deficit Reduction Act of 2005. This was totally during the go go years of the housing boom. Everybody could get huge mortgages even with low income. Crappy old houses were little gold mines to sell or reverse mortgage upon. Then the housing crash & tightening of lending. And maws old house with decades of delayed maintenance, filled with old people’s stuff, can’t sell for even its tax assessor value as it’s not renovated with granite countertops and rainfall shower heads which buyers expect. Add in if maw goes onto Medicaid and wants to keep her home, then spending any $ on the home other than insurance, taxes or required maintenance is not in moms heirs best interest. I really think that as more & more families really realize what Medicaid’s Estate Recovery can mean, and if what the OP, Sonja8084, has had happened to her with Recovery pressuring her to repair, renovate & spend on a property that she does not own, that family/ heirs will flat just walk away from the property and let the state /Medicaid/MERP/tax assessor figure out what to do. If house goes blighted, gets vagrants, stripped of its architectural details, it’s not your property not your problem.
Toad - going through the process of selling the house and asking court clerks for help totally makes sense IF you stand to benefit. But for those on LTC NH Medicaid, there’s likely a 6 figure Medicaid lien or claim involved. Average NH stay is 2 years & at 10k a mo NH cost that’s 240k possible Medicaid lien / claim. If you don’t have exemptions or exclusions to MERP, or a unique reason to keep home, then imo spending time & $ on the house is of no benefit unless property is low value or over 300k to make it worthwhile to deal with.
When my brother (who was an attorney) passed, he left one adult son, a house with a mortgage larger than it could be sold for, and a small mountain of debt. I advised my nephew to just take what he wanted from the house and walk away as there was no check coming his way in the end if he went to the trouble of selling it. As a courtesy I called the bank to tell them there was not an executor for the estate and that the house was now abandoned as far as the family was concerned.
I also called the State's Bar Association to tell them he had passed being he was in practice for himself. Like with the bank I told them there was not an executor for the estate, that the family was just walking away, and that I was letting them know as a courtesy given my brother had open cases. They told me I had to become the executor and that I had to contact all of my brother's current and past clients offering to send them their files or pass them on to new attorneys. I told them I don't have to do anything and that I was doing them a favor alerting them to the situation. I also let them know that the landlord was planning on stepping in to reclaim the office space and would be tossing everything in it. They again insisted that I had to become the executor and deal with it all. I again told them I don't have to do anything and it was up to them whether they allowed the landlord to just toss it all. They hired an attorney to deal with it.
Someone will buy this property. Look into free legal services. Law firms do some pro bono (that means free) work.
Medicaid estate recovery - which I think for AL is done by an outside contractor, look at the NOI (notice of intent) that was sent to you to see who - probably cannot easily move to get acquisition of the home as I’d bet AL probate has the heirs are viewed as first & foremost for distribution of assets of the estate while Medicaid as an unsecured creditor is lower priority claim. And add onto this that home wasn’t ever moved to your mom’s name after your dad died so it’s 2 layers of probate to get through...... if your dads will left his estate divided among your mom and you 3 kids, that likely needs to be probated first if there’s still time on filing his will. Or it all goes to mom as surviving spouse but still there’s paperwork to do to get clear change to the title. It’s easier to have a heir ask court to do this. If you don’t then it’s oodles more involved for the state and the outside contractor to acquire property. They are going to have someone either an atty or paralegal actually file to be named independent administrator for dads estate, present themselves to the court in your county, and post notices and possibly have hearings to establish this and then go through it again once it becomes your mom’s name. Time and $$$$...... state would rather you do & pay for and they just file a claim.
Plus every day there’s co$t$ on the house. Tax assessor will find out eventually that she has died and the property taxes will increase significantly as no homestead exemption anymore & they can retro taxes to day of death. County tax assessor will place a tax lien on the property if that isn’t paid and it will go up for annual tax sale and then someone will do a tax sale redemption on it.
If you really truly could care less, then walk away & mail the keys to MERP sent certified mail with the green return registered receipt postcard. The duo from USPO will run you under $10. And the green RRR will have a signature mailed back to you at your new address. It’s my understanding that signature is considered “legal”. Don’t bother getting an appraisal done. Walk away.
Now if it’s more than mom just died and your flat worn out to deal with all this but maybe, like really maybe, would like to, that’s different. If so, you’re going to need a probate atty to deal with dads and mom’s death. Probate attorney not an Elder law attorney. It will have costs to do but you should ask the attorney about your filing all old property costs as your own claim against the estate, then filing whatever costs once your named executor as well. If your siblings have laid property costs, they too can file a claim. And get property inspected and then give inspection report to the appraiser. Whatever the appraisal places as value can be entered into probate and set the value of this asset of the estate. If it’s less - even way way less - than the 98k the assessor has, it is what it is.
The decision is up to you. Don’t let yourself be pressured to do things. Good Luck.
https://www.seniorliving.org/basics/helpline/
I google for...... senior law helpline
I have NOT ever called and I DO NOT have any recommendations for what place is better to call. but it says they give advice for free. (and make your own decisions in the end. its just advice)
I think I remember someone said to call your local aging and adult office. if they can not help you. maybe they can give you a number to someone who can.
edit if anyone ask for credit card or money, then just hang up :)
If all three of you inherit the home, then your 2 sisters have inherited interests, regardless of whether they helped with care or not. Are they aware of the Medicaid situation?
I'm thinking more now that you really need to get an attorney involved to make sure that your sisters as co-heirs are in agreement with the decision to just walk away from the house. Don't take the chance that they may come back later and question your decision.
I understand the issues of nonparticipating siblings. Truly I do. But I'm thinking of easing out of the obligations and want to ensure that you do it properly and legally.
Are there any other assets to dispose of/
Just to clarify, when you wrote "There's no executor of will. " did you mean that there's a will but no executor named, or that there's neither a will or executor? In other words, did she die intestate, which means w/o a will?
If so, then who inherits the house would be subject to Alabama intestacy laws. Google "Alabama Intestacy laws"; there are several hits. This is a statutory source:
https://law.justia.com/codes/alabama/2016/title-43/chapter-8/article-3
And this is a more readable explanation of who gets what if someone dies without a will:
https://www.nolo.com/legal-encyclopedia/intestate-succession-alabama.html
The reason I explored this is because I was wondering if you inherited the house entirely by yourself, and actually had an inherited ownership as well as possible tax, upkeep, etc. responsibility....subject to the Medicaid lien.
I was also wondering if you or anyone else actually had an inherited interest in the estate, any obligation for disposition, or any interest at all.
If you had NO interest under intestacy laws, then you don't even have the basis or liability for maintaining the estate, and the issue of needing to repair is it moot.
If you are the sole intestacy heir, there's an issue that I don't have the expertise to address: do you have title or upkeep obligation w/o transfer of title to you through a probate intestacy proceeding? This is kind of a "being in limbo" situation.
If I were in this situation, I would probably request that Medicaid provide statutory authority for my obligation to maintain property to which I did not (yet) have title, and for which I had NO FUNDS to use for maintenance. Shift the burden to Medicaid to prove that you have to maintain the property.
Alternatly, since the attorneys you've contacted haven't been responsive, there are two options that I can think of:
1. Get free legal advice from senior centers on whether or not you do have any obligation for the house and property. They may see a potential client and provide just enough information to convince you to hire them. What you do then is make sure you understand the situation, do more research if you have to, then see a different free advice attorney with the updated facts.
This is really to clarify that you have NO obligation for the house or property, and can freely move on.
2. Or you could just notify Medicaid that you do not believe that you have any legal interest or liability for the property, and would be willing to execute a Quit Claim Deed to Medicaid if THEY determine and CAN PROVE that you do have an interest.
This is really a maneuvering tactic, kind of a "prove it or shut up" issue.
http://www.thelongtermcarespecialist.com/ltcquestions.html
From what I read, in order for Medicaid to recover the costs it paid for your mother, Medicaid will file a claim with a probate court. The house and all other assets will be sold to pay Medicaid and all other creditors in full. If there is any money left, it'll go to the heirs. If there's not enough to pay Medicaid and other creditors, they will have to take the losses. They can not go after the heirs.
Probate can not be avoided, it's a given, and the probate court process will cost what it will cost. Those costs will be paid from the sale of the house. So, for the Medicaid rep to use probate costs to threaten you is almost laughable.
You can thank Medicaid for allowing you to stay in the home, but you owe Medicaid nothing. And they know it. They are hoping you don't.
Let us know how it all turns out so we can learn from your experience.
Send a certified letter telling them that since your mom has passed and they have a legitimate right to the house you are now currently situated at a new address and just wanted to advise them that the house has been put on the market and the real estate agent has there contact info and the lien will be dealt with in escrow. Let them know that the real estate agent has priced the home at fair market value. (An appraisal doesn't mean a locational price, it is the condition, location, square footage, amenities and more.) They can not expect more then that, if they do, it's some ignorant person that is gonna show how wonderful they are by tormenting some one in the middle of a huge lose. Ugh, some people turn my stomach
I am sorry for the loss of your mom.
By the way, probate would be expensive for them as they would have to start the legal process.
Be sure and put everything in writing, people will lie, can't argue with a written document. If they call, tell them you want it in writing as you can not possibly keep track of all their threats while you are doing your due diligence in the matter, then say goodbye and hang up. Do this everytime they call, Cruz if you go to court, no judge will listen to he said she said, they will look at a letter and take that into consideration. KEEP A COPY of everything you send, along with the return receipt showing who signed for it.
Best of luck, dealing with our government is a real pain.
In my opinion, if there is a way for you to keep the money from the sale of the property because of your caretaker status, you should at least know about it.
Try saying "I am interested in a consultation about settling an estate that has a Medicaid lien." Make sure you are contacting someone with experience in this area.
Sonja, assuming it *doesn't* change anything, and since you didn't acquire any kind of title to the property I can't see why it would, go ahead and move and send Medicaid the keys.
And sit easy. Even if the house is not saleable qua habitable dwelling (though you're living there, aren't you? What's good enough for you...), all land and all property has some value. Your mother's debt to Medicaid will be honoured.
In my opinion, nothing you added so far changed the first answer you got above. Your POA responsibility ended when your mom died. You signed the lien on HER behalf, NOT yours. The lien means the government has legal rights to take the house if the certain events happen to recovver the money it paid for your mom's Medicaid expenses.
WHILE you were living there, it made sense that they wanted you to pay the taxes and insurance, and upkeep because those were the conditions for you to live there. But once you move out, you can just literally give them the key and walk away.
edit sorry somehow I missed you already answered that. you may have to wait a bit or tomorrow and maybe someone with more experience will have some help for you