How Can I Keep My Mother’s House from the County?

Question from Bee, How Can I Keep My Mother’s House from the County?

Answer from AI:

When a parent is in a care home and the county seeks to take their house, it often involves Medicaid and the Medicaid Estate Recovery Program (MERP). Here’s a general explanation of how you might be able to keep the house.

Understanding Medicaid Estate Recovery

Medicaid can seek reimbursement for the costs of long-term care from the estate of a deceased Medicaid recipient. This is known as the Medicaid Estate Recovery Program (MERP). The rules can vary by state, but generally, the state can recover costs from the estate, which includes the home.

Exemptions and Protections

There are several exemptions and protections that might help you keep the house:

• Surviving Spouse: If the Medicaid recipient has a surviving spouse, the state cannot recover from the estate until the spouse passes away.
• Minor, Blind, or Disabled Child: If the Medicaid recipient has a child who is under 21, blind, or disabled, the state cannot recover from the estate.
• Siblings and Caregivers: If a sibling or adult child lived in the home and provided care for at least two years before the Medicaid recipient moved to a care home, they might be able to keep the house.

Strategies to Protect the Home

There are several strategies that might help protect the home from Medicaid estate recovery:

1. Transfer the Home: Transferring the home to a child or another family member before applying for Medicaid can protect it, but this must be done carefully to avoid violating Medicaid’s look-back period, which is typically five years.
2. Life Estate: Creating a life estate can allow the Medicaid recipient to retain the right to live in the home while transferring ownership to another person.
3. Irrevocable Trust: Placing the home in an irrevocable trust can protect it from estate recovery, but this must be done well in advance of applying for Medicaid.

Consulting with a Legal Professional

Given the complexity of Medicaid rules and estate planning, it is crucial to consult with an elder law attorney or estate planning attorney. They can provide personalized advice based on your specific situation and help you navigate the legal requirements.

Resources and Further Reading

For more detailed information, you can refer to the following resources:

• Medicaid Estate Recovery Program
• Nolo: Medicaid Estate Recovery

Remember, while this information provides a general overview, it is not a substitute for professional legal advice. Always consult with a legal professional to understand the best course of action for your specific circumstances.