Knowing that it is time to think about leaving your home can be a very sad time. There is so much that is changing, and you want to know that the best move is for you. How can you protect your home while remaining eligible for Medicaid? What arrangements can be made? Take this information as a guide in deciding what is right for you to do with your home on medicaid.
Can I give my home to my son/ daughter?
The transfer of a personal residence will result in a period of ineligibility unless the personal residence is transferred to one of the following individuals:
- A spouse of the individual;
- A child of the individual who is under 21 or certified blind or permanently and totally disabled;
- The sibling of an individual who has an equity interest in the home, and was residing in the home for at least one year immediately before the date of institutionalization; or
- An adult, non-disabled son or daughter who is residing in the home for at least two years immediately before the date of institutionalization, and who was providing care to the individual which permitted him or her to reside at home.
An “equity interest” is defined as having an ownership interest in the property as evidenced by being named on the deed, having paid monthly mortgage payments or having made capital improvements. “Providing care” is defined as making arrangements or actively participating in the arrangement for care, either directly or indirectly, full time or part time.
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Can I sell my home to my son/ daughter for less than its full value and still get Medicaid?
Any transfer for less than full value is subject to imposition of a period of ineligibility calculated on the difference between what full market value of the asset was and the amount which the individual received for the asset.
Life Estate Deeds to Protect Your House
I recommend life estate deeds in certain circumstances for Medicaid planning. The individual can still keep their property tax exemptions and the property will pass to their children without probate.
If you have any further questions about how to protect your home on Medicaid, contact our Buffalo law office.