Elderly Parents-Sale of House and Medicaid

[95DRGT]

Anyone have any experience with a parent on Medicaid and the sale of their parents house?

I'm told the government gets the proceeds- just doesn't seem right for someone to work for and pay off their house and not get any benefits from that.

[David]

Elderly Parents-Sale of House and Medicaid

Yes the govt can place a lien on the house or essentially seize it for reimbursement. I had to deal with this in the sale of properties after my grandmothers passing this summer. I had to go back almost 20 years of financial proof to prove that my grandmother never used govt assistance for her medical care/Medicaid.

[YALE]

Anyone have any experience with a parent on Medicaid and the sale of their parents house?

I'm told the government gets the proceeds- just doesn't seem right for someone to work for and pay off their house and not get any benefits from that.

Not get any benefits? Most people that die on medicaid get far more than they've ever paid into the system, and many of those hit six figures in medical cost quickly on the way out. You can't treat an investment like it is beyond use, and that's what a house is, in this case.

[95DRGT]

There has got to be some creative things we could do. He has only applied as we are running out of money for his current care until house sells so we have run out of options.

This is a messed up situation beyond belief from the get go. I was the one that had found out the step monster had funded Nigeria earlier this year with all my Dad's savings and a lump sum from a reverse mortgage.

[YALE]

Ah, man. I'm sorry. That really sucks.

[David]

There are exemptions, but most would never ever qualify. If you transfer the house to your name, you're penalized.

[95DRGT]

So if house sold and proceeds went to pay his debt and debt I have incurred taking care of house and him before medicaid kicks in could there be any recourse? Essentially he would have no assets and there is nothing left for them to get.

Not trying to buck the system here just trying to do right by my Dad whom has never been a drain on society.

He paid his taxes, owned a business for 20 years and has been a contributor to society and humanity in every means.

Seems like I'm getting screwed for trying to do the right thing.

[Mixedup]

My father had a terminal condition a couple of years ago - with some assets, but was still married to my Mom - not sure it that help.

After a year in assisted care at VERY high costs, my mother went to some lawyers that specialized in Medicaid and legally closed a bunch of investments or moved things around, not sure of details ... He was approved for Medicaid after that.

Long story short - if extended care is needed for just few months, bite the bullet - but if for a year or more - get a Lawyer

Good Luck!

[John -- '02 HAWK]

Convert the house to a rental, charge too high of rent, sell a year later as a loss?

[beefed88]

There is a 5 year "look back" period from death.You are allowed to own a car, house, and $2k. You can't rent it because that would be income. Also watch out because any sale of the house under the fair market value may screw you too.

Estate planning is a thing that I believe people take too lightly. It can be extremely easy if an attorney is involved much earlier.

Any chance there are VA benefits to apply for?

[beefed88]

Not get any benefits? Most people that die on medicaid get far more than they've ever paid into the system, and many of those hit six figures in medical cost quickly on the way out. You can't treat an investment like it is beyond use, and that's what a house is, in this case.

True, but people want their inheritance more than they want to pay the govt.

[YALE]

True, but people want their inheritance more than they want to pay the govt.

What do you do when the well goes dry?

[Broncojohnny]

You have to put the assets into an irrevocable trust, with a trustee who is not related to you, at least five years before you apply for benefits. Otherwise you get fucked. My grandmother is 84 and I have been telling my mom this for years but it falls on deaf ears just like it does with everyone else. Your only option is an attorney and their legal mumbo jumbo.

[beefed88]

What do you do when the well goes dry?

No, I fully agree with you. There is no free ride and we must face the consequences of our health or decisions to not do proper estate planning.

I think it is perfectly fair that the govt can take proceeds from assets to pay the medical bills that people accrue.