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My mother is a widow. We live in NJ. My husband and I live in with her and are her primary caregivers. House is willed to me and brother. House is paid for, no mortgage. The house is currently in my mother's name. My mother needs full time Nursing Home Care. She has small savings account, receives Social Security and Veterans' Benefits monthly. She needs to apply for Medicaid. I know about the 5-7 year look back, is there ANY way her house can be protected from being used as collateral to pay for Nursing Home Care, since my husband and I would still be living in the house after she is admitted to the Nursing Home?

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I am from NJ and went thru this with my Mom.

In NJ the house is an exempt asset. If you have lived with her for more than 2 years as her Caregivers, then you file for Caregiver Allowance. This allows you to remain in the house as long as you can pay taxes, utilities and upkeep. At Moms passing, the house becomes an asset Medicaid can recover from. A lien will be placed on the house and will need to be satisfied at time of sale.

Mom's SS will go towards her care. If her VA is Aid and Attendance, that will be dropped. You cannot receive both Medicaid and A & A because both government subsidies. Medicaid usually is the higher money wise.

I went to my County Social Service Office and talked to a Medicaid caseworker who ended up helping me file.
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Reply to JoAnn29
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If this is about keeping the actual house, not just about the money, the answers here give you an option. Wait until the house is left in the will to you and B, subject to the Medicare lien, then raise a mortgage to pay out the amount of the Medicare lien, and keep the house. Of course, joint between you and B means deailing with splitting the value by agreement.
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Reply to MargaretMcKen
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Reply to MG8522
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My mother had been on Medicaid for several years before her death. All of her assets were left to me (my brother had passed before she did). When mom passed and I put her house up for sale, I found out there was a lien on the house by the State to recover the amount they had been giving her over the years. I was uninformed and it came as a shock to me, but that was my fault. Ignorance is no excuse.
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Reply to BarB1936
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JoAnn29 Feb 2, 2025
Someone should have received a form, after Mom's passing, that asked if she had any assets. Of course, the house. It becomes an asset at death. Then a lien is placed and a letter is received saying a lien has been placed and the amount. When the house was sold and the lien satisfied, then a letter is sent saying the lien was satisfied. In my State anyway.
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Speak with your local Medicaid and find out if they have a waiver that allows you to keep the house since you living there has kept her out of a nursing home for at least 2 years. You will have to prove, by medical records, that she has needed skilled care and has not been placed because of your actions.

She will need those medical records to even be considered for a nursing home, hopefully they exist.
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Reply to Isthisrealyreal
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Why not sell the house now and when she runs out of money then apply for Medicaid?

You and your husband can either buy your own place or rent, might be time to stand on your own.

Medicaid will take back what they paid anyway after she passes, if there is anything left you and your brother will get it.
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Reply to MeDolly
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Your mother can keep this home until her death whether she is on Medicaid or not. One home and one car can be held. After death, as it passes to you and brother, it will be sold, and Medicaid will do clawback to recover from your mom's assets (which the home is) money they put in her care. They will let the estate know what the recovery will be in terms of dollars. The home, then sold, will go first to creditors, which the federal government is one, and then to division between you and brother.
You are currently living with her, and I am assuming the home is rent-free? You likely can live in that home, care for it and pay taxes and etc (which your mother will not be able to afford on the pittance the gov. allows her to have) and you and brother will have to pay upkeep and etc. on the home; likely you will take the brunt of all that as you do live rent free.

That is how it normally works, but you should check with an attorney, giving them the deed, documents and facts of your mom's assets and etc.
Good luck.
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Reply to AlvaDeer
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MargaretMcKen Feb 1, 2025
Alva, do the children /residents get the opportunity to buy the house when Medicare does its clawback? How does that work? Is it always an open-market sale?
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