Hi,
Currently, my parents live at home, but I'm afraid that won't be the case forever. I am the primary caregiver and have been for two years. I'm trying to do the right thing by being proactive and start looking at NH for mom and AL for dad. My mom is on MassHealth and my dad doesn't qualify. Here is my question, if they sell their house will my mom lose her MassHealth eligibility? To complicate things more, my brother wants to buy it (as an investment property) but I think it's better to sell with an independent broker (who I have used when we sold our last home) and keep things out of the family as I fear this could complicate things for my parents in the long run. Any resources or help would be appreciated. Of course I wouldn't do anything without contacting an elder attorney, but I would like to be able to ask informed questions with her.
Many thanks!
You are right to be concerned about bros "investment" approach. If the property is bought by your brother for less than FMV, the state could place a transfer penalty based on the amount BUT done by a # of days extra ineligibility for Medicaid. If bro does not pay FMV ( usually is what tax assessor has property value of last tax bill.), the only way to buy it for less is to have a very conservative appraisal done BEFORE the sale & the appraiser has to be registered for however your state licenses them. otherwise expect a transfer penalty....and it's by days ineligible. For example, for TX a 50k off the FMV means 320 days of ineligibility as TX Medicaid reinbursement is pegged at about $156 a day. 320 days of private pay is a long, long time and the NH will expect payment and at private pay rate . So would brother private pay for all costs during the period of time of the penalty period?? If not, then can you? Real property penalty is hard to get around as all details & to the penny is there in your states database.
Really get an appointment with elder lawyer, since you have community spouse issues I'd look for an NAELA one. Your situation gets complicated as it sounds like mom has looming NH placement and dad could maybe stay @ home but will need AL sometime down the road....so house is a problem for when dad moves out. Do this soon and not wait till you are in NH move chaos. Good luck
See a lawyer before you sell the house, especially to a family member.