I would also like to put her house in my name, so that I don’t lose it (I have been residing in the home for 10 plus years) it is in her name though. I am going to put the house in my name and apply for medicaid before the 5 yr look back rule. I know there will be a penalty phase. Can she just continue to live with me and then reapply after the penalty phase is over? We reside in Oregon. Also I was told I would need to do a quit claim deed, but then found out, I don’t need to because it’s a manufactured home, there is no deed. It’s listed at DMV as manufactured dwelling, so there is no deed. Is that correct that I don’t need to do a quitclaim deed then?
You might have to purchase the Manufactured Home. (very good possibility that the home is not worth much, what would be of value is the land it is sitting on if she owns the land. If that is the case you would have to purchase the land, she would have to sign a Quit Claim on that)
You might want to consult with an Attorney about the legal issues.
for example, a duplex falls into this category as could have a homestead but it’s only for 1/2 of the value so is going to require more details to establish just what category it is. Plus if the other half is rented that too becomes an issue as it’s income but is not a “guaranteed income” like SSA income is.
but back to your situation, imho you have to HAVE TO precisely find out from your State as to what the type of manufactured home your mom has and if it is considered a “home” or a “vehicle”. States have maximum values on home and autos for them to be considered exempt assets for the applicants lifetime. Homes tend to run 550K - 850K. But autos are way way less, like could be a maximum Blue Book Value 30/35K. To me, you want to absolutely know this b4 you go and do a thing to change its legal ownership. It’s something to get an answer from Medicaid on or an elder law attorney who is experienced in LTC Medicaid regulations.
On the transfer penalty, it’s not quite a clear cut based on the value of the asset transferred. Value a baseline which is factor in the penalty period but NOT the only factor.
for example, say I’m POA of my 80 yr old Dad, who owns his modest single family home outright, no mortgage. Tax assessor value 150K. Dad is in great shape, travels, has a girlfriend. XMAS 2022, Dad transfers ownership to his nephew, with no $ changing hands. It’s his favorite nephew and has be there to help him for years as I live in a nearby city & coincidentally where Dads gf lives. He “gifts 150K” house & it’s fine as Dad & gf are renting a condo together. Thanksgiving 2024 Dad has a super bad fall, hospitalized, has rehab in a SNF and cannot return to the condo. Dad now needs to stay in the rehab SNF and go from a rehab patient on health insurance paying to a custodial care resident & filed for LTC Medicaid Jan 1,2025. Dad’s income under his States $2829 max but that 150K gifting places a penalty on his application. Dad’s State LTC Medicaid pays NHs a day rate of $225. Dad’s penalty period would be 667 days (150K divided by 225). Penalty starts date he filed LTC application (1/1/25). And LTC Medicaid will not pay at all till past the 667 days penalty period OR past Xmas 2027 for a future application filing (5 yr point). Dad has to private pay to stay & the NH can bill their $550.00 private pay day rate. & nephew is under no requirement to transfer back the home. For me - as POA - it’s an expensive crisis situation to deal with.
So for you, is the facility you work at, are they willing to ignore or reduce the day rate your Mom will owe the NH due to her gifting penalty? Is the facility going to take her day rate out of your pay check? If it can you afford the actual day rate for the penalty period? Is the facility OK with staff having family members as residents?
Please pls pls research and find these things out b4 mom & you go and do legal changes.
You need to contact an attorney with these questions. They are legally specific and require expert advice, not the opinion of strangers on a Forum.
Good luck.
A couple of things you said stuck out to me.
1. You want to put her house in your name. There MAY be some recourse in the Medicaid Caregiver Child Exemption. This allows someone to transfer their home to an adult child who has provided care that has kept them out of a nursing home. However, I don't know the requirements nor if this applies to anyone but their children. You don't want to just move her house into your name without consulting an attorney well versed in estates and elder care. She would have to be the one to do the transfer, and if she is considered incompetent and you are her POA - this is even stickier as you aren't supposed to benefit from being able to sign her assets over to yourself.
2. You talk about the penalty phase. Be careful here. People often think "well I'll just take care of them until the penalties are cleared." That is sometimes easier said than done. She could still need more care than you can provide and continue to work during that period - and then you will be in a mess - because you'll end up having to pay out of pocket because you profited from her assets.
More than anything - you just need to make sure whatever you do is legally covered because it can come back to haunt you.